Leaders of two camps on the Anchorage Assembly have agreed to a compromise proposal to spend $50,000 on an independent audit of some financial accounting during the last months of former Mayor Mark Begich's administration in 2008.

Assemblyman Dan Coffey, a frequent critic of Begich, and Patrick Flynn, Assembly chairman and a frequent Begich supporter, agreed to terms that Flynn said are aimed at "de-politicizing" the audit.

But the audit would still investigate alleged irregularities, such as contentions that revenue shortfalls were unreported, fund balances were inaccurately reported and spending went beyond appropriated funds.

The resolution says one outcome of the audit could be "potential referral to appropriate authorities" of its findings.

The resolution will be up for consideration by the full Assembly during tonight's meeting at the Loussac Library.

The push for an audit came after a 10-page report sent to Assembly members Jan. 21 by municipal attorney Dennis Wheeler, who questions the accuracy of some statements made by the Begich administration in its waning months. Wheeler wrote a longer investigative report on the same topic in November, and the most recent report raised more questions about financial accounting of the Begich administration.

Begich resigned as mayor on Jan. 3, 2009, to become Alaska's new U.S. senator. The stock market, and city investments, were crashing in the last few months of his mayoral term. Less than two weeks after acting mayor Matt Claman took over in January 2009, Claman reported a $17 million deficit in the 2009 city budget. Some Assembly members, and Dan Sullivan, who became mayor last July, say Begich and his top managers were not candid about city finances at the end of 2008 as the Assembly approved four big labor contracts and the 2009 budget.

Begich has described Wheeler's investigation as politically motivated and has said the attorney writing it ignored facts that contradict his thesis.

As regards the latest development, he said: "It's frustrating to see the Assembly and Sullivan administration continue to play political games and spend $50,000 or more of taxpayer money that could be used to fund critical projects and services. Standard & Poor's recent affirmation of the Municipality's AA bond rating has already substantiated the professionalism and integrity of the budget and finance information provided by my administration."

But, he said, if the city goes along with an audit, he will supply information and answer questions.

Three Assembly members -- Coffey, Debbie Ossiander and Jennifer Johnston -- proposed an audit as a follow-up to Wheeler's reports, to get to the bottom of whether spending and reporting on certain items were handled properly.

They proposed that Wheeler hire an auditor to follow up on his own reports.

The compromise that Flynn and Coffey agreed to last week would place supervision of the audit in different hands in an attempt to make it more neutral, said Flynn.

The audit would be managed by city clerk Barbara Gruenstein, Assembly attorney Julia Tucker and the city's internal auditor, Peter Raiskums.

The Assembly would approve the contract with an independent auditor, and get the results.

"Nothing can completely de-politicize it," said Flynn. "I'm just trying to get people who could have a vested interest in the outcome from being involved in the audit itself."

Asked whether he meant the current mayor, Flynn said, "Anybody who's offered a strong opinion in the debate."

Coffey said his goal is "to know the truth."

The compromise resolution, besides putting the city clerk and two others in charge, also sets boundaries on the audit, Coffey said, to "focus on things we don't have complete answers to yet."

The resolution says the audit will be "the Assembly's final investigative action with regard to financial activities of the Begich administration" discussed in Wheeler's report.

It says, "Any further actions with regard to these matters shall be limited to the consideration of appropriate amendments to the municipal code or potential referral to appropriate authorities."