More questions regarding city finances
The Comprehensive Annual Financial Report (CAFR) and city audit for fiscal year ending June 30, 2019 was finally presented to council on Tuesday, July 21, 2020, over a year from the close of city records. This is the latest reporting in our city’s history. Can you imagine having a colonoscopy exam and one year later getting the results. You have stage-four colon cancer. Not acceptable.
City staff will try to explain away this awkward situation by telling us that their computer system was hacked back on Dec. 16, 2019 and also blame COVID-19 for the delay. Except for last year, most city audits were completed by December.
At the July 21 council meeting, a mysterious letter in regard to compliance with Assembly Bill 3773 was discussed. According to the contract with the auditing firm LSL, a report, not a letter, was supposed to be completed.
Last February, Brandon Young of LSL stated that they could not verify legal compliance with AB 3773. He said they are not attorneys. At last year’s meeting, Vice Mayor Farmer asked many questions. He was not happy about the letter and not having bank reconciliations completed.
On July 21, a letter was given again and bank reconciliations for more than half a year were not completed until after the close of the fiscal year. Furthermore, the letter was not included in the city’s CAFR and cannot be found in the Single Audit Report. Where is that letter? Why was a report not completed by the auditing firm again?