San Bernardino Seal

By Ryan Hagen, The Sun
Posted: 03/15/15, 8:08 PM PDT | Updated: 2 hrs ago

SAN BERNARDINO >> It’ll cost double what we said, and if you don’t agree you’ll be thrown out of bankruptcy court.

That — in far less blunt terms — is the message from the city’s auditors, who say audited financial statements for the past two years turned out to be much more complicated than expected and will cost $490,000 more than their original estimate.

The amended agreement with Macias, Gini and O’Connell, LLP is up for the City Council’s ratification on Monday, with less than three months remaining until a bankruptcy court-imposed deadline for a Plan of Adjustment that will depend on those audited numbers.

The city’s audits have been repeatedly delayed, with the first of the two audits — for fiscal year 2012-13 —already a year late, causing the state to cut funding for the city’s economic training agency.

That delinquency started before the city contracted with MGO. Its 2011-12 audit — the audit for the year leading up to the city’s August 2012 bankruptcy filing — was presented to the council by Rogers, Anderson, Malody & Scott in June 2014, about 15 months after the state deadline.

City officials blamed staff turnover, the bankruptcy and the demise of its redevelopment agency in part for the earlier delays.

In this case, City Manager Allen Parker said he’s not sure the specifics behind the auditing firm’s statement that it needs more man-hours and therefore more money. That may have been discussed with the assistant city manager in charge of finance, he said, but nothing was put in writing.

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