Half a dozen cities are being closely monitored by the state after being identified as “vulnerable” to fraud and waste, the L.A. Times reports. The monitoring program is part of a new effort to remain proactive in identifying potential problems at the local level. That effort arose in the aftermath of the Bell scandal and includes a program launched last year to crack down on waste, fraud and mismanagement by cities and municipal agencies.
“It’s very important to get a jump on financial stress indicators before they become severe,” said Kinney Poynter, executive director of the National Assn. of State Auditors, Comptrollers and Treasurers. “You don’t want situations like you had in Bell, where there was extremely large salaries or large cases of fraud because it destroys the confidence in government.”
The six cities were flagged after auditors looked at public records such as budgets and previous audits. They combed the records for “key financial indicators” such as projected financial outlook, revenue growth, pension obligations, ability to respond to fiscal emergencies, and ability to pay short-term debts.
Read more about which cities are being monitored and why.