Aside from “pension,” no words better encapsulate the city of San Diego’s financial crisis than “audit” and “bonds.” As the Union-Tribune is reporting, the city’s audits and bonds are again being delayed. But this time, the supposed fix to San Diego’s financial management problems — a new $50 million computer system — is the problem.
From the U-T/Watchdog Institute:
Significant problems with a new $50 million computer system are preventing San Diego from balancing the city’s books, officials acknowledge, and the delay has stalled refinancing of bonds that were to save millions of dollars.
The glitches will delay the annual audit, a milestone document that says the books are in order and tells Wall Street the city is on track, for at least six months from its December deadline. It’s a stark reminder of recent years of investigations, overdue audits and abysmal credit ratings.
The city’s inability to produce years of accurate audited financial reports led to its suspension from the bond market in 2004. Its credit rating was restored in 2008.
A new citywide computer system is supposed to fix the problem. But the computer system has had all sorts of difficulties, including busted budgets. Our own Scott Lewis detailed the early problems with the system.