Panama City OKs Warren Averett CPAs and Advisors to do forensic audit

PANAMA CITY – Local officials have decided on a firm to oversee the city’s upcoming forensic audit.

Panama City commissioners on Tuesday approved an agreement with Warren Averett CPAs and Advisors to perform the audit. It not only will make sure the city’s fiscal and operations systems cannot be manipulated by employees, but also look to uncover illegitimate spending or stolen funds.

The forensic audit stems from the Oct. 20 arrest of Michael Johnson, the city’s former community development director, who was accused of embezzling $470,000 from the Friends of After School Assistance Program, a nonprofit organization that supports the city’s After School Assistance Program.

Panama City Commissioners approved and agreement with Warren Averett CPAs and Advisors to perform a forensic audit sparked by the arrest of Michael Johnson, the city's former community development director, who was accused of embezzling $470,000.

“If you don’t fix something, then you’re building on a bad foundation,” Commissioner Josh Street said. “We need to do what we need to do to make sure that future team members, future city leaders and future commissions don’t have to go back and correct any sins from the past.”

Correcting Johnson’s mistakes:Panama City transfers $455K to fix overspending by arrested city official Michael Johnson