With Tasks Set, Ad-Hoc Committee Looks for Forensic Auditors

If a forensic auditor completes all the tasks asked of it, it will glean an explanation as to why a rate study in 2009 that imposed a 40 percent increase on San Juan Capistrano rate payers did not forecast a large. 

That task is one of dozens that the Auditing Finance Ad-Hoc Committee came up with Friday to define the scope of work . A  call to firms interested in completing the litany of tasks will be issued as early as next week, with responses—including cost proposals—expected to come in as early as 30 days thereafter.

The foresnic audit will be conducted in addition to, and independently from, the regular audit completed annually of all of the city's finances.

The committee was formed at the request of the City Council (specifically Laura Freese) to investigate bookkeeping in the water agency—currently facing an $8-million deficit—and the redevelopment agency—under attack by some local critics, .

Here are some of the other tasks:

• Audit all expenditures from water enterprise accounts, including operating salaries and benefits for staffers and inter-fund transfers between various water agency accounts.
• Audit all water enterprise bond sales.
• Review how staffers have prepared and administered budgets, including the accuracy of budget revenue projections.
• Review whether any funds have been spent on projects outside of the redevelopment agency's project area boundaries.
• Review bond proceeds, sales and administration within the redevelopment agency.