Audits Blast Bankrupt Calif. City's Financial Management

Law360, New York (August 6, 2013, 11:50 AM EDT) -- A new series of audits released on Monday pin many of Stockton's financial woes on poor decision-making and ignored economic warning signs, urging officials to plot out remedies as the California city tackles what is now the second largest-ever municipal bankruptcy.

State controller John Chiang identified “significant weaknesses” in the city's internal and administrative accounting controls that, if left unattended, could plunge the city deeper into wasteful spending and abuse of public resources, according to Monday's reports. Chiang's office conducted a series of audits, focused on...
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