By Terry Miller
A report from Capitol Radio earlier this week indicated that Monrovia was possibly one of six California cities at “High Risk of Financial Trouble or Fraud.” While the report mentioned cities like Bell, the state auditor actually reviewed financial statements from 450 cities as part of the new high-risk assessment program introduced into law this year. We contacted City Manager Oliver Chi for his thoughts on the story.
“Earlier this year in July 2015, the State Auditor’s Office informed the City that pursuant to California Government Code 8546.10, they would be conducting an initial assessment of Monrovia to determine whether or not the City should be subject to a full audit. The State Auditor’s Office then conducted a three week review of our operations, and upon completing that review, notified the City that they would not be performing a full audit of the City. Ultimately, the State Auditor’s Office determined that while there were certainly things we could improve upon, Monrovia did not exhibit high-risk characteristics and therefore, they would not be looking for the authority to perform a full audit of the City.
“The State Auditor’s Office did share with us that they had a few concerns about our overall operations, including pension costs, the City’s ability to pay for non-pension related retirement benefits, public safety overtime costs, grant management, and contract administration. However, during the close-out discussion, the representatives from the State Auditor’s Office acknowledged that the City was already working on the development and implementation of better systems to address the areas where they had identified operational weaknesses. The State Auditor’s Office shared that this factor did contribute in part to their determination that no further audit of the City was necessary. Furthermore, moving forward, we will be submitting some additional follow-up information to the State Auditor’s Office in the early part of 2016 to demonstrate our continued implementation of operational improvements.
“With regard to the story you forwarded, there is certainly more context to the matter than what was reported in the news item. Pursuant to California Government Code 8546.10, the California State Auditor is authorized to audit those local government agencies that they determine to a to possess a high risk for potential waste, fraud, abuse, and mismanagement, or that have major challenges associated with their economy, efficiency, or effectiveness.”
– Oliver Chi, City Manager, Monrovia
