2020-802 Audit Scope and Objectives

Local High Risk—City of Blythe

The audit by the California State Auditor will provide independently developed and verified information related to the city of Blythe (Blythe). The audit's scope will include, but not be limited to, the following activities:

  1. Review and evaluate the laws, rules, and regulations significant to the audit objectives.
  2. Evaluate Blythe's current financial condition and ability to meet its short-term and long-term financial obligations while continuing to provide services to its residents.
  3. Identify the causes of Blythe's financial challenges, and determine whether the city has developed an adequate plan for addressing those challenges, including the following:
    1. Determine whether the city uses revenue generated for specific purposes appropriately.
    2. Assess the city's efforts to improve its financial condition by increasing revenues and reducing expenses.
  4. Determine whether Blythe's budgeting processes comply with best practices. Evaluate the city's procedures and underlying assumptions for projecting future revenue and expenditures, and determine whether they result in balanced budgets and accurate financial forecasts.
  5. Assess Blythe's process for setting, increasing, or decreasing fees or rates to ensure that it complies with applicable laws, rules, ordinances, regulations, and best practices. For a selection of these fees and rates, determine whether they cover the city's costs of providing services.
  6. Examine Blythe's efforts to fill key management and staff positions and maintain organizational and leadership continuity within city operations.
  7. Determine the effectiveness of Blythe's financial and organizational internal controls.
  8. Evaluate the financial viability of Blythe's police and fire departments and its ability to provide effective public safety services to its residents given its resource constraints.
  9. Review and assess any other issues that are significant to the audit.

California State Auditor's Office
02/26/2020