The Delray Beach City Commission voted Dec. 8 to amend the interlocal agreement with the Downtown Development Authority (DDA), splitting the annual management fee payment and attaching a timeline for audit corrections after a contentious discussion over an internal audit.

Mayor Carney and other commissioners said the audit found deficiencies in recordkeeping and missing policies (credit‑card/reimbursement/gift policies). Carney said the findings merited caution: "I want financial accountability for everyone," he said during debate. Commissioners debated whether the mayor had publicly characterized the DDA inappropriately; several voiced concern about tone but agreed policy fixes were needed.

City internal auditor Elena Georgiev told the commission the DDA committed to implement the audit recommendations by March 2026 and that audit follow‑up typically occurs six to 12 months after findings. Georgiev said, "They made a commitment to implement the recommendations by March 2026, at which point I can go and follow‑up." The city attorney offered an amendment specifying a split payment — $350,000 management fee to be paid with portions due 12/31/2025 and 04/30/2026 — to give the DDA time to adopt policies, and staff noted the DDA could adopt the city's policies if desired.

Commissioners moved and approved the amendment by roll‑call vote. The motion includes follow‑up: the city will revisit the DDA's policy implementation in March 2026 and withhold full payment until the stated conditions are met.

The commission did not terminate the DDA or remove funding permanently; instead the amendment was framed as a compromise intended to protect taxpayer dollars while allowing the DDA to complete corrective actions. The auditor will return in March 2026 to verify implementation.