INDEPENDENT SAN DIEGO AUDITOR SAYS HE CAN'T DO HIS JOB BECAUSE CITY OFFICIALS ARE WITH
HOLDING FINANCIAL INFORMATION, PEGGY PICO HAS MORE ON HOW THIS COULD AFFECT YOU.
>> >>PEGGY: EDUARDO LUNA IS AN INDEPENDENT CITY AUDITOR HIRED BY THE CITY TO IMPROVE
FINANCIAL CONTROLS BUT HE RECENTLY TOLD THE CITY COUNCIL THAT SOME DEPARTMENTS ARE INTERFERE
WITHING HIS WORK, WHICH ULTIMATELY PREVENTS HIM FROM PROTECTING TAX PAYERS.
UT SAN DIEGO WATCH DOG REPORTER MATT CLARK HAS DONE SEVERAL STORIES ON THE ISSUE AND
MATT, WHY DOES THIS MATTER TO ANYONE OTHER THAN LUNA AND LET'S SAY THE DEPARTMENTS HE'S
AUDITING?
>> >>MATT CLARK: LUNA'S AUDITS ARE VERY IMPORTANT.
THEY'RE UNCOVERING WEAKNESSES IN THE CITY THAT COULD LEAD TO SERIOUS WASTE OF TAX PAYER
MONEY AND HE'S TRYING TO IMPROVE EFFICIENCIES BUT HE'S GOT SOME AUDITS THAT HAVE SOME STARTLING
FINDINGS THAT MAYBE OFTENTIMES CITY O OFFICIALS DON'T WANT TO HAVE IN THE PUBLIC, I THINK.
IT'S CERTAINLY A CONCERNING PROCESS FOR THEM.
AND THERE'S BEEN THIS PUSH BACK, SOME STRUCTURE ACCORDING TO LUNA PREVENTING HIM FROM DOING
THAT.
>> >>PEGGY: WHAT WERE SOME OF HIS MAJOR COMPLAINTS?
THERE WERE SOME PUSH BACKS BULLET POINT THROUGH.
>> >>MATT CLARK: ON ONE OF THE MOST RECENT AUDITS HIS AUDITORS HAD THEIR THEY BASICALLY
BOOTED HIM OUT OF THE COMPUTER SYSTEM HE WAS AUDITING.
AT THE END OF THAT AUDIT WHEN A DRAFT AUDIT REPORT WAS READY AND LUNA PREVENTED IT TO
THE DEPARTMENT HEAD TO CORRECT INACCURACIES SO THE DEPARTMENT HEAD ACCORDING TO LUNA AND
THE DEPARTMENT HEAD DENIES THIS SAYS I'M NOT GOING TO RESPOND TO THAT.
YOU RELEASE YOUR REPORT, I'M DONE SPENDING TIME ON THIS.
IF THERE'S ERRORS IN IT, WE'LL POINT THEM OUT AFTER YOU RELEASE IT.
>> >>PEGGY: IN THIS REPORT IS THE BUILDING PERMITS THE DEVELOPMENT SERVICES.
WHAT DID ME FIND THERE?
>> >>MATT CLARK: THAT'S THE AUDIT I WAS REFERRING TO.
HE FOUND THAT THEIR COMPUTER SYSTEM HAS SECURITY CONTROL WEAKNESSES THAT SORT OF COULD ALLOW
FRAUD TO OCCUR.
HE ALSO FOUND THAT ONE OUT OF EVERY FIVE OF THE BILLINGS FOR BUILDING PERMITS THAT FOLKS
MIGHT GO IF THEY'RE RENOVATING THEIR HOME, THE BILLINGS ARE INACCURATE, THEY HAVE UNDER
CHARGES AS LOW AS 34,000 DOLLARS AS AND OVER CHARGES AS MUCH AS 345,000 DOLLARS.
>> >>PEGGY: HOW WOULD THAT IMPACT LET'S SAY A TAX PAYER, THE AVERAGE PERSON, WOULD WE
ULTIMATELY FEEL THE BRUNT OF THAT?
>> >>MATT CLARK: RIGHT, WELL F YOU WENT TO DEVELOPMENT SERVICES AND YOU DID A PERMIT
TRANSACTION WITH THEM, WHAT THE AUDITS SUGGESTS IS THAT A LOT OF THOSE TRANSACTIONS HAVE ERRORS
IN THEM.
SO CERTAINLY YOU SHOULD BE CHECKING YOUR BILL AS YOU ALWAYS SHOULD ANYWHERE.
>> >>PEGGY: YOU WROTE THAT CARL DEMAIO BASICALLY TOLD THE AUDITOR TO TONE DOWN HIS WHAT?
HIS WORK, WITH THE DEPARTMENT HEADS HIS COMMENTS?
>> >>MATT CLARK: DEMAIO AND I THINK TO A CERTAIN EXTENT OTHER AUDIT COMMITTEE MEMBERS ARE CONCERNED
ABOUT THIS AUDIT.
ALL THIS DISAGREEMENT.
THERE WAS THE DEPARTMENT HEAD SAID I DISAGREE WITH THE MAJORITY OF YOUR RECOMMENDATIONS
AND FINDINGS.
THEY DON'T WANT TO SEE THAT GO ON IN THE FUTURE, YOU KNOW, THEY DON'T WANT TO SEE FUTURE PERFORMANCE
ON WITH THAT DISAGREEMENT.
DEMAIO WAS SAYING YOU NEED TO GET ALONG WITH PEOPLE, THAT HAS TO OCCUR.
>> >>PEGGY: IF GETTING ALONG WITH PEOPLE MEANS SKEWING THE INFORMATION OR NOT HAVING ALL
THE INFORMATION, THAT COULD NOT BE GOOD.
I'M SAYING THAT BECAUSE THIS REPORT WAS ACTUALLY TABLED.
TELL US WHAT THAT MEANS.
>> >>MATT CLARK: THEY TABLED THE REPORT THE AUDIT COMMITTEE TABLED THE RORLT.
NORMALLY THEY FORWARD IT ON TO COUNCIL, BUT THEY TABLED IT BECAUSE THEY DON'T HAVE THE
INFORMATION THEY NEED IN ORDER TO DETERMINE OW THE AUDIT SHOULD MOVE FORWARD.
>> >>PEGGY: IS THIS AN ISSUE OF JUST SOME INTERNAL DRAMA?
LUNA'S BEING ACCUSED OF BEING OVERLY AGGRESSIVE, THE DEPARTMENTS ARE BEING ACCUSED OF BEING
SECRETIVE.
IS IT HE SAID SHE SAID OR NOT REVEALING WHAT PEOPLE WANT TO KNOW?
>> >>MATT CLARK: SO FAR I GUESS WE HAVE TO SEE WHAT HAPPENS AT THE NEXT AUDIT COMMITTEE
MEETING.
IF THEY'RE ABLE IF THE DEVELOPMENT SERVICES DEPARTMENT AND LUNA ARE ABLE TO GET ALONG
AND COME UP WITH SOME RECOMMENDATIONS AND GET SOME THINGS MOVING, WE'VE MOVED FORWARD
AND HOPEFULLY FUTURE PERFORMANCE AUDITEDS WON'T HAVE THIS ISSUE.