ORANGE : Firm to Widen Audit of City Agencies
The City Council has selected the accounting firm of KPMG Peat Marwick to conduct audits of all city money and agencies through 1994.
The firm is already auditing the city’s treasury department and investment policies.
In December, the city said it had lost $7 million in a misappropriation scheme allegedly masterminded by Newport Beach money manager Steven D. Wymer.
The Securities and Exchange Commission has charged Wymer with swindling dozens of cities out of at least $113 million. Results of the city treasury audit have not been released.
Council members have said hiring a new auditing firm is not related to the $7-million loss and simply follows city policy to change its auditor every three to five years.
The city has allocated $103,500 over the next three years to audit all city departments and to review “all money received by the city,” said Ted L. Schoettger, city finance director.
KPMG Peat Marwick, which has a Costa Mesa office, was selected from eight auditing firms that responded to the city’s request for proposals, he said.
“It’s a nationally known firm, one of the big eight, one of the tops in the field,” Schoettger said.
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