In a letter to the editor in the Indy on Aug. 16, titled “Would It Surprise You?” we learn that when the city’s audit committee reported to the city council on the 2022 financial statements, they made statements that were in error. We further learned that ten days before the audit committee report, the 2023 audited financial statements that definitively refuted those conclusions were delivered to the city. We learned that the man of many titles, including chief financial officer, finance director, assistant city manager and acting city manager, would have received those statements, should have read them and therefore would have known that the statements made by the audit committee chair to the council were erroneous. Yet he sat on the dais and said nothing.
In another letter in the Aug. 23 Indy edition, “City Hall: A Theater of Peculiar Events and Concerning Discrepancies,” we find that the man of many titles made numerous erroneous, inconsistent, contradictory and discrepant statements in connection with a request for proposal for a new audit firm. Some will say these are just mistakes—everyone makes them, and there is nothing to be concerned about. Others look at this and see a troubling pattern of erroneous and inconsistent statements about important decisions and actions. But innocent mistakes or a troubling pattern, these actions were not taken by a junior staff member. A high-level member of city management did them.
Concerning this, there is no discussion of the breakdown that allowed these things to happen in the first place and what actions have been taken to ensure they won’t happen again.
Paraphrasing, our auditors tell us that a material weakness is where there is a reasonable possibility that something, or a series of things, may cause a material misstatement (a big mistake) that will not be prevented or detected and corrected on a timely basis. Whether these actions rise to the level of being material (big), one can see how their very existence might cause someone to conclude that something big that we don’t want to happen, could happen, and it might not be stopped or discovered and fixed until much later.
Mark Marriner Sr., Laguna Beach
Thanks. The CFO/ACM’s financial oversight situation is extremely concerning.
I would hardly qualify the oversight actions uncovered as mistakes. Especially since it’s a long-time, seasoned top-level management employee who made them.
Apparently aside from the City Council and the Audit Committee, City Manager Kiff wasn’t even aware of the finance department employee decisions made either. That’s also concerning.
Who will be held accountable if more financial management decisions, mistakes or processing pattern issues are discovered?
Taxpayer funds must be highly monitored and scrutinized or the consequences could have a serious impact on our City. The outside third party auditing process can’t come too soon!
This pattern of errors and omissions isn’t just about pointing fingers—it’s an important reminder of the need for accountability and transparency in city management. When key financial figures go unchecked, it undermines trust in the system and opens the door to bigger issues that could affect all residents. We must encourage a culture where mistakes are promptly addressed, not ignored, and where leadership takes proactive steps to ensure such errors are not repeated. Accountability isn’t just for the sake of criticism; it’s about protecting the integrity of our community and ensuring decisions are made with accuracy and responsibility.
Our City Council has a vital responsibility in selecting audit committee members who will not hesitate to call out issues like these. We need strong, independent voices on the audit committee who prioritize the public’s interest and are unafraid to speak up when financial discrepancies or procedural errors occur. It’s crucial that our city ensures the audit committee members are both qualified and willing to challenge the status quo to protect the integrity of our financial systems. We deserve a committee that holds leadership accountable and safeguards the transparency our community depends on.
As we approach the November elections, it’s critical that we elect leaders who will take these patterns of errors and lack of accountability seriously. We need individuals who will prioritize transparency, ensure financial oversight, and demand higher standards of responsibility in city management. This is our chance to choose leaders who won’t stay silent when issues arise, but instead will act to correct them swiftly and decisively. Your vote this November is an opportunity to bring in leaders who truly value accountability and will work to restore trust in our local government.
The only candidates I trust to take these issues seriously are Judie Mancuso and George Weiss
Mike I AGREE! Laguna Beach is at a tipping point on so many levels. Our lifestyles and environment have been significantly jeopardized by Council Majority (CC leaders Whalen/Kempf and CC followers Ronaghi and Orgill) and as a community we are out of balance.
Resident’s must ask themselves, “how did we get here” and “who is responsible?” Enough is enough!
Let’s elect environment/resident-centric candidates Judie Mancuso and George Weiss to help us get back on a balance track. They will represent all stakeholder interests and won’t be bought, intimidated or succumb to self-interest tourism/investor pressures. Thanks!