HomeMy WebLinkAbout30 - NB-2 - Information Regarding a Forensic Audit - 6/2/2015CITY COUNCIL AGENDA REPORT
MEETING DATE: JUNE 2, 2015 ITEM NUMBER: NB -2
SUBJECT: INFORMATION REGARDING A FORENSIC AUDIT FOR THE 60TH
ANNIVERSARY EVENT
DATE: MAY 19, 2015
FROM: TAMARA S. LETOURNEAU, ASSISTANT CHIEF EXECUTIVE OFFICER
PRESENTATION TAMARA S. LETOURNEAU, ASSISTANT CHIEF EXECUTIVE
BY: OFFICER
FOR FURTHER INFORMATION TAMARA S. LETOURNEAU, ASSISTANT CHIEF
CONTACT: EXECUTIVE OFFICER (714) 754-5122
RECOMMENDATION:
Staff recommends that the City Council provide direction to staff regarding a forensic audit
for the 60th Anniversary event.
BACKGROUND AND ANLYSIS:
At the April 7th City Council meeting Councilmember Foley made a request for staff to
obtain information from a third party regarding a forensic audit related to the 60th
Anniversary event. The accounting firm of Lance, Soll & Lunghard, LLP provided the
attached letter (Attachment A) which includes the following information:
• Definition of a forensic audit
• Estimated cost of a forensic audit
• Procedure on how a forensic audit is completed
If the City Council directs staff to conduct a forensic audit on the 60th anniversary event
then staff will have to retain a qualified firm through a Request for Proposal process.
Further, in order to preserve the integrity of the process, staff recommends that outside
assistance also be retained to manage the process.
ALTERNATIVES CONSIDERED:
An alternative is to determine that the fiscal analysis of the 60th Anniversary costs,
processes and reforms that have been made provide the necessary information
regarding this event.
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FISCAL REVIEW:
According to the attached letter, the estimated cost of a forensic audit "is typically billed at
on hourly rate and therefore the overall cost would increase based on the level and extent
of work performed." According to the CPA firm, "it is reasonable to estimate that the costs
to begin the process may range from $15,000 to $25,000."
CONCLUSION:
Staff recommends that the City Council provide direction to staff regarding a forensic audit
for the 60th Anniversary event.
TAMARA S. LETOURNEAU
Assistant Chief Executive Officer
STEVE DUNIVENT
Interim Finance Director
Attachment A: Letter from Lance, Soll & Lunghard LLP
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