City auditors give San Francisco a clean opinion but flag federal reporting and IT control issues

An independent audit presented to the Government Audit and Oversight Committee on Aug. 18, 2008, concluded that San Francisco’s 2008 financial statements earned an unqualified (clean) opinion, while auditors also identified several management-letter comments and one significant deficiency in federal-program compliance.

Linda Hurley, audit director at Macias, Jeanie & O'Connell, told the committee the auditors issued an unqualified opinion on the city’s financial statements and on compliance with federal requirements for fiscal year 2008. "We issued an unqualified opinion or a clean opinion on the financial statements," Hurley said, describing the result as the highest level of assurance auditors can give.

Why it matters: an unqualified opinion means the auditors found the city's financial statements to be presented fairly in all material respects. But Hurley and other auditors noted areas that need improvement and that will be tracked by auditors and management going forward.

Key findings and follow-up

- Food‑stamp reporting: Auditors reported one significant deficiency in the single-audit of federal awards related to the food‑stamp program, citing late…