City of Compton audit reveals major financial challenges

In a recent government meeting, the audit partner for the City of Compton provided an update on the city's financial audits, highlighting significant progress made over the past few years. This marks the first year of the new engagement partner's oversight, following a gap in audits that lasted four years prior to 2018. The firm has since completed audits for the fiscal years 2018, 2019, 2020, and 2021, with the latest audit being described as the most successful to date.

The partner emphasized the extensive work required to reconstruct financial records from the previous years, noting that the audit process involved sourcing information from various external records due to missing documentation within the city. This thorough approach was necessary to avoid issuing a disclaimer of opinion, which would indicate an inability to conduct a proper audit.

Looking ahead, the audit team is already working on the fiscal years 2022 and 2023, with a goal to complete both by December 2024. The partner expressed confidence in meeting this timeline, contingent on the city providing the necessary auditable schedules and information.

During the meeting, Councilwoman Dard acknowledged the contributions of Stephanie Smith, a dedicated resident serving on the audit committee, and proposed including a stipend for her efforts in the city budget. The council expressed appreciation for the audit team's work, recognizing the completion of the 2021 audit as a crucial step toward streamlining future audits.