During a recent city council meeting in Compton, officials discussed critical financial audits and the implementation of a new scanning service aimed at improving document management and future audits.

The council addressed the city's ongoing struggle to achieve an unqualified opinion from auditors regarding its financial statements. Currently, the city holds a qualified opinion due to outdated cost allocation plans, which have not been updated for nearly a decade. A consultant has been engaged to prepare a new cost allocation plan for fiscal year 2022, which is expected to be implemented soon. City officials expressed confidence that they could complete audits for fiscal years 2022 and 2023 within seven months, aided by the hiring of external CPAs to expedite the process.

However, some council members, particularly Councilwoman Duhart, voiced concerns about the pace and thoroughness of the audit process, suggesting that more time was needed for review. Duhart emphasized the importance of ensuring that citizens feel confident in the city's financial reporting, especially given the complexities involved in the audits.

The discussion also highlighted issues with missing reports that were supposed to be provided to auditors, raising questions about communication and accountability within city departments. The possibility of reissuing the audit report was mentioned, contingent on the receipt of these documents.

In addition to the audit discussions, the council approved a resolution to enter into a multiyear professional service agreement for scanning services, aimed at digitizing city documents. This initiative is expected to enhance the efficiency of future audits by ensuring that records are readily accessible and properly maintained.

The meeting concluded with a proposal to table the review of legal services agreements for further consideration, as concerns were raised about the effectiveness of current legal representation and the costs associated with outside law firms. Council members expressed a desire to reassess these agreements to ensure better outcomes for the city and its residents.