Overview
- City auditors told the Board of Estimates on May 20 that the Finance Department showed $8.5 million in outstanding receivables as of Dec. 31, 2025, and judged more than $3 million unlikely to be collected.
- The audit found 2,774 invoices totaling over $82 million were canceled without required approvals or documented reasons because the city system did not require authorization.
- Mayor Scott pressed finance officials for a detailed list of who owes the city and why overdue accounts were not being referred to the Law Department, saying he wants a recovery plan immediately.
- Finance Director Michael Mocksten acknowledged the problems as long standing, noted recent recoveries such as conduit receivables falling from more than $28 million to about $124,000, and outlined near-term reforms and a formal write-off policy.
- Deputy finance officials proposed specific fixes — limiting who can cancel invoices, a central cancellation mailbox, standard procedures, and regular management review — with milestones due by the end of May and July 2026 and possible follow-up to change referral practices to lawyers.