ROSWELL NEW MEXICO
COMMITTEE AGENDA ITEM ABSTRACT
COMMITTEE AGENDA ITEM ABSTRACT
16.
Finance Committee
- Meeting Date:
- 09/03/2026
COMMITTEE:
Finance
CONTACT:
Tammi Smith
CHAIR:
Kurt Gass
ACTION REQUESTED:
Consider recommending the adoption of Resolution 26-XX for disclosing unauthorized disbursements and corrective action. (Gass)
BACKGROUND:
Initiated by: Councilor Gass
As of August 31, 2026, the City of Roswell has experienced a loss of $350,000 resulting from a fraudulent withdrawal from the City’s banking accounts. The matter has been reported to local, state, and federal law enforcement authorities for investigation and possible recovery of the funds. The investigation remains ongoing, and at this preliminary stage, there is no indication of criminal wrongdoing by City personnel.
Resolution No. 26-XX formally discloses the loss and directs the Finance Department and Office of the City Treasurer to coordinate with the City’s External Auditors and Internal Auditor to develop and approve a comprehensive Banking Verification and Suspected Fraud Response Protocol. The protocol will include an Immediate Incident Checklist and Institutional Escalation Contacts and Procedures. All affected employees will be formally trained on the adopted protocol.
As of August 31, 2026, the City of Roswell has experienced a loss of $350,000 resulting from a fraudulent withdrawal from the City’s banking accounts. The matter has been reported to local, state, and federal law enforcement authorities for investigation and possible recovery of the funds. The investigation remains ongoing, and at this preliminary stage, there is no indication of criminal wrongdoing by City personnel.
Resolution No. 26-XX formally discloses the loss and directs the Finance Department and Office of the City Treasurer to coordinate with the City’s External Auditors and Internal Auditor to develop and approve a comprehensive Banking Verification and Suspected Fraud Response Protocol. The protocol will include an Immediate Incident Checklist and Institutional Escalation Contacts and Procedures. All affected employees will be formally trained on the adopted protocol.
FINANCIAL CONSIDERATION:
The City has incurred an unauthorized loss of $350,000. Recovery efforts remain subject to the ongoing investigation.
LEGAL REVIEW:
Legal has reviewed this item.
BOARD AND COMMITTEE ACTION:
Consider recommending the adoption of Resolution 26-XX for disclosing unauthorized disbursements and corrective action.
STAFF RECOMMENDATION:
Consider recommending the adoption of Resolution 26-XX for disclosing unauthorized disbursements and corrective action.