SD City Officials Disappointed by KPMG’s Audit Delay
Friday, December 22, 2006
San Diego city officials are disappointed – if not surprised – that the outside auditor, KPMG, has missed another deadline to release the long awaited 2003 audit . KPBS reporter Alison St John has more.
The 2003 audit has been delayed since San Diego's finances came under scrutiny after the city's failure to declare its massive pension deficit.
The external auditor, KPMG, originally said it couldn't finish the job until a consultants' report was completed, but that was done months ago. San Diego's chief financial officer Jay Goldstone says says it's possible the reason the audit's taking so long is because the firm didn't think San Diego would ever agree to the $20 million fee charged by the Kroll consultants.
Jay Goldstone: In my mind I wonder if KPMG thought that the city could never pay Kroll ... They're playing major catch-up now.
Goldstone says the mayor has no intention of offering KPMG any more money than the $6 million the company has already asked for to complete the audit
The 2003 audit is a critical step to restoring San Diego's credibility on Wall Street. Alison St John, KPBS News.
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