Mayor Kevin Johnson’s proposal to hire an independent company to audit city departments was hotly debated but not resolved by the City Council Tuesday. Johnson has repeatedly said that the City Council in January should have hired an independent firm to audit city departments.

The dispute that emerged Tuesday between Mayor Kevin Johnson and Councilman Rob Fong over a new independent audit comes as the city projects future deficits. When the city balanced its budget last month, it closed out a $50 million deficit. However, Finance Director Leyne Milstein estimates that the city will need to address a $30 million deficit in the 2010/2011 fiscal year.

Fong and Johnson sparred over the issue of hiring an independent audit. Johnson expressed frustration with the City Council, saying it was not addressing the city’s need for an independent audit in light of the city’s budget problems, Johnson said. “This represents more of the same, business as usual,” he said.

Fong criticized the proposal for an independent audit, saying the proposal from city staff was generic. He said it was still unclear what the City Council was looking for in an independent audit.

The city has an internal auditor position, but the position is currently unfilled. The city’s former auditor, Marty Kolkin, accepted a job in Santa Monica in May.

Last month, the City Council voted to place the auditor’s office under the council’s supervision. This means that the auditor will no longer report to the city manager’s office.

A report by city staffers further points out that the city’s financial statements are audited by an independent certified public accounting firm each year. 

*Photo by Cheya Cary

Kathleen Haley is a staff reporter for The Sacramento Press.