NATCHEZ — The City of Natchez has hired a Madison accounting firm to conduct a forensic audit of the city’s finances.

Following approval from the Natchez Board of Aldermen, Mayor Darryl Grennell signed an agreement Friday to hire Collins, Barr & Hembree to conduct the audit.

Robbie Barr of Collins, Barr & Hembree said the firm would set up a meeting with city officials this week to determine the scope of the forensic audit.

The concerns or specific problem areas outlined by the mayor and board of aldermen will direct the work of the audit. Financial problems the city has had in the past, Barr said, would also be an indicator of what areas of the city’s finances need to be audited.

Collins, Barr & Hembree has been working with municipal governments, Barr said, for several decades. The firm conducts both annual audits, he said, as well as forensic audits.

A forensic audit is different than an annual audit of financial statements, Barr said, in that a forensic audit can take an in-depth look at specific areas of a city’s finances.

“And help in (developing) a system to avoid the kinds of problems you’ve had in the past.”

Annual audits of the city’s finances have shown in recent years overspending, unfinished bank account reconciliations and lack of attention to proper fund accounting.

For years, mostly under the direction of former elected City Clerk Donnie Holloway, the clerk’s office has been plagued by staff turnover and questions of proper financial accountability.

The problems and the quest for a solution led aldermen to change the city clerk’s position from an elected one to an appointed one.

“For years, there’s been questions about, ‘Where’s the money? How’s the money being handled in the city?’” Grennell said. “There’s always been a question about the money, and I was really concerned about it.”

The aldermen in recent weeks struggled with balancing the budget for the upcoming 2016-2017 fiscal year, which begins Oct. 1.

The budget talks came on the heels of the termination of former city clerk Wendy McClain, who was fired Aug. 1 for an unspecified violation of city policy.

The city clerk’s office lost another employee a month later when the office’s accountant abruptly resigned.

Interim City Clerk Melissa Hawk, who was appointed a few days after McClain’s termination, completed most of the work on the budget.

Grennell said prior to taking office July 1 he told the aldermen he wanted a forensic audit of the city’s finances.

“When I came into office, there were like 82 checking accountants,” Grennell said. “I have never heard of any city having 82 checking accountants. Bank reconciliations (are) another question. All the bank accounts had not been reconciled.

“If I’m going to take ownership of the people’s money, I need to make sure everything is accounted for, so it’s very important that we have a forensic audit. It will get down to the nuts and bolts of what’s going on with the money.”

The cost of the forensic audit will be based on the time and scope of the audit, which is still to be determined, Grennell said. Grennell estimates the audit could cost approximately $15,000, but said it will likely be less than that.

City Attorney Robert “Bob” Latham said the agreement with the accounting firm was drafted in such a way that the city could discontinue the audit once it reaches a certain amount or time period that the board of aldermen determines.

Barr said the firm will likely start with the city’s most urgent needs, and depending on what it revealed, go from there.

The firm will make frequent reports to the city about the audit’s findings, Barr said.