COLUSA, CA (MPG) – For the third straight year, the Colusa County Grand Jury issued a scathing final report citing serious lapses in the City of Colusa’s accounting, procurement, and transparency practices.
Among the most alarming findings were selective implementation of purchasing procedures without adherence to state-mandated thresholds; outdated accounting systems with vague financial reports; and lack of oversight in check-writing and disbursements, with unclear signatory authority.
The 2024/25, in its final report released June 30, also found that poor record keeping and substandard audio/visual recordings of City Council meetings hinders the public’s access to information.
“While the City has made some efforts to address deficiencies in its purchasing procedures in response to the recommendations of the previous Grand Jury, it has not implemented the internal controls available to staff,” the grand jury stated.
The primary focus of the 2024/25 grand’s investigation, the third consecutive dive into Colusa’s accounting practices, was to try to understand the procedure the city uses and the payment process for goods and services. However, the grand jury reported that interviews with Colusa City Council members, former staff, and administrators, as well as an examination of the city’s website, council meeting attendance, meeting notes, and video recordings, revealed that locating specific votes, directives, and discussions were extremely difficult.
While some deficiencies identified by the 2022/23 and 2023/24 grand juries have been addressed, the 2024/25 grand jury said during its investigation, it became apparent that internal control mechanisms remain underutilized.
“Internal control mechanisms are the policies, procedures, and processes put in place by an organization to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud, the report states. “These mechanisms are a critical part of good corporate governance and risk management.”
Additional findings point to vague financial reporting, lack of sufficient detail, and information largely unusable for informed decision-making.
“There is consensus that the process suffers from a lack of transparency regarding accounts, fund allocations, and balances,” the report stated. “The grand jury found it odd that city council members were not aware of what the annual city budget is, yet they are to approve on an annual basis.”
Also odd, the grand jury learned a former city council member no longer seated signed checks upon request when another city official declined authorization. Although the grand jury did not identify individuals by name, elected City Treasurer Devin Kelley has repeatedly informed the city council during public meetings that she will refuse to sign any check without proper documentation or authorization, which indicates city administration, at least in the past year, had a go-around.
The grand jury’s year-long review, which included interviews with city council members, former staff, and administrators, as well as an examination of the city’s website, council meeting attendance, meeting notes, and video recordings revealed that locating specific votes, directives, and discussions is extremely difficult.
“This lack of accessible documentation presents a significant challenge for any oversight and highlights a broader issue of insufficient transparency,” the report states.
The Colusa County Grand Jury recommended major reforms to improve transparency and efficiency within Colusa’s government. First, it urges the adoption of a formal accounting manual to streamline procurement and financial reporting. It also calls for staff training on the California Uniform Public Construction Cost Accounting, paired with the publication of a vetted contractor list.
To strengthen oversight, the grand jury advised the city to upgrade financial software and ensure monthly reports are delivered to the city council. It further recommended a dual-signature system for processing checks, supported by updated bank signatory cards. Lastly, the grand jury recommended the city install a new audio-visual system within three months to enhance public access to council meetings.
Altogether, the report emphasized the need for Colusa to modernize its operations and renew its commitment to public accountability.
Prior to the release of the grand jury’s report, the City Council, on June 3, approved a significant update to the city’s 2012 purchasing policy, which officials said was long overdue.
Key changes included a preference of up to 5% for qualified local vendors to promote economic growth, clearer ethical guidelines for staff involved in purchasing decisions, and adjustments to financial thresholds that better reflect the city’s current operational needs.
Additionally, outdated provisions like surplus supplies and equipment have been removed, and language concerning public works projects has been revised to comply with current state laws.
While the updates carry no direct fiscal impact, improved procurement practices may lead to cost savings and more efficient use of public funds overtime, officials said.