I sent the following letter to Mayor Sue Kempf:
I planned to ask these questions at the July 23 City Council meeting public input, but the line was too long. This is probably better as I can receive written answers.
I am typically proud of Laguna Beach, but I am quite upset to hear that the City terminated the services of an auditor after the auditor found deficiencies in the City’s internal controls.
Is it true that the City Finance Department did not complete a year-end audit on time for six years and that in 2023, the completed audit was over a year late?
Is it correct that the auditor found regarding “Internal Control over Financial Reporting” that the City had “deficiencies in internal control”?
Is it correct that in April 2024, Assistant City Manager Gavin Curran terminated Eide Bailley, our auditor for two years, without consulting the City Audit Committee or the City Council?
I have an MBA from UCLA and these would be red flags to most that something is wrong and should be investigated. Are you investigating?
Was Question 13 in the RFP for a new Auditor answered honestly, “Did the Auditors identify any noncompliance, significant deficiencies or material weaknesses in the FY 2022-23 audit”?
We need greater transparency. I agree that audit reports should be clean and available to the public and that the City Audit Committee should have members who are CPAs or have auditing experience.
The community deserves answers to these questions. Mayor Kempf, will you provide the answers?
Gene Felder, Laguna Beach
