Lodi Audit Reveals $9,000 in Potential Credit Card Fraud

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A forensic accounting audit has revealed that employees of the City of Lodi generated nearly $9,000 in potentially fraudulent credit card transactions over a five-year period, according to reporting from the Lodi News-Sentinel. The city's accounts payable division conducted testing of CAL-Card transactions, identifying policy violations totaling approximately $8,625 across categories like unapproved meals, personal purchases, and unauthorized travel.

Why it matters

The audit findings highlight the importance of strong internal controls and oversight for municipal credit card usage, especially as cities process millions in annual transactions. The report comes as Lodi has already taken steps to limit credit card reliance and tighten policies, aiming to prevent future misuse of public funds.

The details

The Lodi City Council is scheduled to receive the detailed forensic accounting audit report from Hoslett Forensics on April 15, 2026. The report examines procurement card charges, the utility deposit account, and purchases made through an Amazon account. The accounts payable division's testing found that 50% of the $8,625 in violations were for unapproved meals or meals exceeding daily limits, 25% were for personal or unapproved purchases, and 25% were for unapproved travel, flights, or seat upgrades.

• The forensic accounting audit covered a five-year period.
• The Lodi City Council is scheduled to receive the audit report on April 15, 2026.
• The city adopted procedural changes in August to limit the use of CAL-Cards for travel-related expenses.

What they’re saying

What’s next

The Lodi City Council will review the detailed forensic accounting audit report from Hoslett Forensics on April 15, 2026 and determine any further actions or policy changes needed to address the identified credit card policy violations.