Get Outside Advisors, Auditors Urge County

Orange County officials should improve some bookkeeping methods and encourage outside experts to review auditing practices, according to an outside audit of the county’s 1993-1995 financial books.

The Ernst & Young accounting firm suggested that the county regularly “reconcile” its general ledger--which lists all assets--and its accounts receivable ledgers. The firm found that such calculations “had not been performed on a timely basis” during the period covered by the audit.

County officials said they are now performing monthly reconciliations of the ledgers. They said such calculations were impossible to complete during the county’s 18-month bankruptcy because records in the treasurer’s office were unclear.

Ernst & Young also recommended the county appoint to its Audit Oversight Committee independent advisors from the private sector who have no affiliation to county government. County officials said they are seeking residents with audit experience to serve on the committee, which was formed last year to help oversee the county’s financial reporting process.

The county selected Ernst & Young to complete the audit in the wake of the December 1994 bankruptcy. The county has sued its former outside auditor, KMPG Peat Marwick, alleging the firm failed to warn it about former Treasurer-Tax Collector Robert L. Citron’s high-risk operations. The firm has denied any wrongdoing.

County officials said they were generally pleased with the Ernst & Young report and concurred with most of the findings.