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Orange council directs audit committee review and seeks organizational assessment amid financial questions
Summary
Facing public concern about the city's finances and Proposition 218 questions, the council directed its volunteer audit committee to review financial records dating to 2008 and approved seeking an RFP for an organizational assessment and fiscal strategic plan; cost estimates discussed ranged from about $60,000 to $700,000 depending on scope.
The City Council gave direction to use the seven‑member volunteer audit committee to review the city's financial statements (staff suggested back to 2008) and to examine specific questions, including compliance issues raised related to Proposition 218. Council debate centered on whether to hire an outside forensic auditor — which staff said could cost ‘‘a quarter million to maybe a half $1,000,000’’ — versus leveraging the audit committee for a first review to improve transparency and control.
Council members also supported soliciting an organizational assessment through an RFP (staff estimated $120,000–$140,000) to review department operations for efficiency and potential savings, and exploring a fiscal strategic plan using outside consultants (staff estimate $60,000–$70,000) to model long‑term fiscal stability. Public commenters including Reggie Mundicus urged using internal review resources first and noted that forensic audits are typically used in criminal prosecutions.
Council agreed to direct the city manager to have the audit committee begin the financial review and to bring back RFP materials for an organizational assessment; staff will report findings and options to the council for further direction. No contract for a forensic audit was approved at this meeting.
