After we published this investigation last year, San Diego city officials called for the Auditor’s Office to audit the Southeastern Economic Development Corp.

That audit never really caught hold. I was told the auditor was short staff and too busy cranking out the city’s long-delayed financial statements, which have caused the city quite a bit of pain over the last several years.

Then, in May, with questions being raised about pay increases in SEDC’s budget, Councilman Tony Young requested an audit again.

SEDC commissioned Keyser Marston Associates to do the audit. City officials had a problem with that — Keyser Marston is one of SEDC’s principal consultants in its everyday business. The firm would be auditing some of the same decisions it may have helped make — something that would be inappropriate, CFO Jay Goldstone told me a few months ago.

City officials went about trying to hire an outside auditor themselves.

But Keyser Marston completed its audit anyways — at a cost of $40,000.

So, after we published this story yesterday, I decided to check in on the status of the city’s audit.

Eduardo Luna, the city’s new internal auditor, told me via e-mail that a contract with Macias Consulting is in the process of being finalized. “Macias Consulting will evaluate the efficiency and effectiveness of the organization, and determine if organizational goals are being achieved,” he said.

It’s unclear whether the audit would cover the sorts of issues that were the focus of this week’s story. I’ve put in that query but haven’t yet heard a response.


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