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City says accounts are stable, will cooperate with Rangers’ investigation
Gov. Greg Abbott last week directed the Texas Rangers to investigate the city of Elgin for possible state law violations following years of poor recordkeeping and calls for fiscal transparency.
A review of Elgin’s books Oct. 21 by independent auditors BrooksWatson & Co. saw the city recognize a lack of financial oversight — largely accredited to staffing gaps — but still receive an unmodified opinion. Despite the highest level of assurance that city financial statements are accurate and free of material misstatements, according to third-party auditors, public outcry and requests for a forensic audit have drawn state intervention.
“The people of Elgin deserve answers, not excuses,” State Rep. Stan Gerdes told the Courier. “Elgin has repeatedly failed to file timely financial audits, leaving taxpayers in the dark about how their money is being spent.”
The local representative said he sent a letter to Abbott after the audit report, pointing to Mayor Theresa McShan and allegations that roughly $10 million in taxpayer funds are unaccounted for.
His letter described Elgin finances as a “deeply troubling situation” and labeled potential violations of state finance and penal codes.
Alleged crimes include the mixing of Elgin finances with different accounts and non-city funds.
“Only a full and independent forensic audit can restore accountability and prevent this situation from being repeated elsewhere in our state,” Gerdes’ letter read.
The Rangers, a division of the Texas Department of Public Safety, handle major criminal and special investigations, including public corruption cases. Abbott’s Oct. 30 announcement marked the beginning of a deeper probe into the city’s finances.
No charges have been filed as of press time.
“Due to the accusations of chronic financial mismanagement, including inconsistent accounting practices and unreconciled bank accounts, in potential violation of multiple state laws, I directed the Texas Rangers to launch an investigation into the city of Elgin’s finances to ensure transparency and full compliance with state law,” Abbott said.
City officials released a statement following Abbott’s announcement, maintaining that Elgin’s finances remain stable. They acknowledged sloppy recordkeeping, accounting errors and administrative lapses have created administrative shortfalls, but said issues are being addressed.
“The city of Elgin will cooperate fully with Governor Abbott’s recently announced investigation into the city’s finances,” the statement read. “Recent audits conducted by an independent auditing firm for fiscal years 2022 and 2023 found no evidence of wrongdoing or criminal activity and no missing funds. Any issues discovered in the audits concerning accounting procedures are being addressed with current staff.”
The council is holding a public workshop Nov. 5 at City Hall to discuss the audit findings further.
“I’m urging every resident to attend the Elgin City Council meeting this Wednesday at 6:30 p.m. and demand answers. Only full sunlight and total transparency will get the job done,” Gerdes said.
Council members debated pursuing a forensic review during their meeting last month but tabled the matter after discussions became heated.
“We can go forward and also have the right to look back,” Councilwoman Tiffany St. Pierre said. “I want to spend months and years to go back. I want to know where my tax dollars were, and my constituents want to know where their tax dollars went.”
Elgin’s audit report can be found at elgintexas.
