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Burbank uses same audit firm that's under investigation for role in Bell scandal

City officials awaiting results of state inquiry before deciding on contract renewal

December 03, 2010|By Gretchen Meier, gretchen.meier@latimes.com

Burbank may have to redo nearly $600,000 worth of financial audits that were performed by the same firm under investigation for its role in the city of Bell employee compensation scandal, officials said.

Mayer Hoffman McCann is currently under investigation by California Controller John Chiang’s office to see if it adhered to government standards while auditing Bell, Chiang spokesman Garin Casaleggio said.

The firm has audited Burbank’s financial statements since the fiscal year ending in 2006.

“Along with a series of audits the controller has done to put Bell back on the path of reform, he is also looking at Mayer Hoffman McCann,” Casaleggio said. “The firm gave them a clean bill of health and that is a serious concern.”

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Burbank Financial Services Director Cindy Giraldo said her department has been aware of the Mayer Hoffman McCann contract since the Bell scandal broke in July.

“It was pretty common knowledge,” said Giraldo, who assumed her post in August. “We are waiting to get the state controller’s report before making a recommendation to the City Council.”
Her department has also been recognized with a Certificate of Achievement for Excellence in Financial Reporting since 1983.

Mayor Anja Reinke could not be reached for comment.

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