SR-01-27-2015-13ETo: Mayor and City Council
From: Mayor Pro Tern Vazquez and Councilmember Himmelrich
Date: January 27, 2015
13 -E: Request of Mayor Pro Tern Vazquez and Councilmember Himmelrich that
staff present the Council with an ordinance to implement the
recommendation of the City's auditors in the attached letter to form an
audit committee of the City Council that will "provide oversight and review
of the City's financial reporting process, internal controls and the
independent audit function."
January 27, 2015
v �-U Certified Public Accountants.
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January 30, 2012
Honorable Members of the City Council
City of Santa Monica
1717 41h Street
Santa Monica, CA 90045
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In planning and performing our audit of basic financial statements of the City of Santa Monica, California
(City), as of and for the fiscal year ended June 30, 2011, in accordance with auditing standards generally
accepted in the United States of America, we considered the City's internal control over financial
reporting (internal control) as a basis for designing our auditing procedures for the propose of expressing
our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the City's internal control. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control.
However, during our audit we became aware of several matters that are opportunities for strengthening
operating efficiency. The memorandum that accompanies this letter summarizes our comments and
suggestions regarding those matters. We previously reported on the City's internal control in our report
dated January 30, 2012. This letter does not affect our report dated January 30, 2012, on the financial
statements of the City.
We will review the status of these comments during our next audit engagement. We have already
discussed these comments and suggestions with City personnel, and we will be pleased to discuss them in
further detail at your convenience.
Sincerely,
(ll. r' 0
Macias Gini & O'Connell LLP
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