Steve Sanchez Calls for Independent Forensic Audits

Steve Sanchez Calls for Independent Forensic Audits Amid Growing Accountability Concerns Within Riverside County Cities and Special Districts

RIVERSIDE COUNTY— La Quinta Councilmember and Riverside County LAFCO Commissioner Steve Sanchez recently announced a series of new oversight, transparency, and forensic audit policy discussions he formally requested during the May 6 Riverside Local Agency Formation Commission (LAFCO) meeting.

The proposals include the creation of a dedicated forensic audit reserve fund, expanded Municipal Service Review (MSR) oversight reforms, and the development of long-term transparency and accountability frameworks for cities and special districts throughout Riverside County.

Sanchez currently serves as one of only two city councilmembers in all of Riverside County appointed to serve on the seven-member independent Riverside LAFCO Commission, which oversees local government boundary, governance, and service-related matters throughout the county.

Established under the Cortese-Knox-Hertzberg Local Government Reorganization Act, LAFCO is the independent state-mandated agency responsible for overseeing local government boundary changes, annexations, incorporations, reorganizations, mergers, dissolutions, and the formation and restructuring of cities and special districts throughout Riverside County.

LAFCO also conducts Municipal Service Reviews that evaluate whether local agencies are financially stable, operationally efficient, properly governed, and capable of providing reliable public services to their communities.

Sanchez said that while LAFCO is often publicly associated with annexations and boundary changes, the Commission’s responsibilities go far beyond drawing lines on a map.

“In essence, LAFCO serves as one of the government watchdog independent agencies overseeing cities and special districts,” Sanchez said in a statement. “Under Government Code Section 56430, LAFCO is specifically tasked with evaluating governance accountability, financial ability to provide services, operational efficiencies, and long-term sustainability through the Municipal Service Review process. Serious oversight responsibilities require meaningful oversight tools.”

Among the policy discussions Sanchez requested are:

• Creation of an ongoing forensic audit reserve fund capable of supporting multiple independent forensic audits or forensic financial reviews annually.
• Development of a long-term accountability program requiring cities and special districts to undergo an independent forensic audit or forensic financial review at least once every five years as an added layer of transparency and oversight beyond their standard annual financial audits.
• Review and modernization of Riverside LAFCO’s Municipal Service Review process, consultant scopes, methodologies, and evaluation criteria to strengthen independent analysis and early-warning oversight capabilities.
• Exploration of long-term transparency and accountability requirements tied to future city incorporations, annexations, mergers, reorganizations, dissolutions, and special district formations approved through LAFCO.

Sanchez said that the proposals come after receiving concerns and information from current and/or former government employees, elected officials, and individuals associated with local agencies throughout Riverside County, particularly within the Coachella Valley, regarding procurement practices, financial stewardship, governance issues, conflicts of interest, change orders, and taxpayer accountability.

“To protect those individuals, their identities and communications will remain confidential,” Sanchez said. “However, much of the information being brought forward involves public records, financial data, procurement activity, contracts, budgets, and other government records that deserve careful review and responsible oversight.”

Sanchez emphasized that the effort is focused on independently verifiable information and factual documentation.

“I am not looking for hearsay, politics, assumptions, or personal grievances,” Sanchez said. “I am interested in facts, records, documentation, timelines, procurement history, financial information, and evidence capable of independent verification.”

Sanchez further said that forensic audits are intended to strengthen public trust and accountability, not merely identify wrongdoing.

“If an independent forensic audit identifies weak accounting practices, outdated procurement procedures, inadequate safeguards, or poor internal controls, then those problems can be corrected through stronger policies and reforms,” Sanchez said. “That is exactly what oversight is supposed to accomplish.”

“However, if evidence of intentional misconduct, corruption, conflicts of interest, bid manipulation, or misuse of taxpayer resources is uncovered, then those matters should be referred to the appropriate state and/or federal authorities.”

Sanchez also said that transparency and accountability should not be viewed as threats by agencies operating responsibly.

“Strong public institutions require strong public trust,” Sanchez stated. “And strong public trust requires transparency, accountability, independent oversight, and responsible stewardship of taxpayer resources.”

The proposals are intended to strengthen public confidence, improve accountability, identify risks earlier, and ensure taxpayer resources are being managed responsibly throughout Riverside County local government, Sanchez said.