Ernst and Young’s forensic examination of more than $1 billion in cashflows through the Centerra urban renewal plan has uncovered a pattern of questionable accounting practices and noncompliance with the city’s master financing agreement.

In its latest update to the Loveland Urban Renewal Authority board on Tuesday, the firm reported that after close scrutiny of 73 cash disbursements and nine public bid awards from Centerra’s main metropolitan district, auditors found that district managers often misclassified expenses, conducted related-party transactions without much oversight and bypassed competitive bidding rules set in the MFA (master financing agreement).

“We went through a lot of different activity,” said Ernst and Young partner Gary Burke, describing the 5,587 files and 90,000 ge

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