*Bell's internal controls 'virtually non-existent'

An audit by State Controller John Chiang on Bell's finances has discovered a bunch of abuses, including illegally raising taxes, mismanaging bond funds and entering into questionable contracts and land purchases. The Controller will release audits on Bell's handling of state and federal funds by the end of October. From a letter to the city's intermim administrator:

All of the city's financial activities and transactions evolved around one individual--the former Chief Administrative Officer (CAO)--who for all intents and purposes had complete control and discretion over how city funds were to be used. There is no evidence of any oversight by members of the Bell City Council, most of whom received additional compensation and/or loans as a result of actions authorized by the CAO. Under this environment, the potential for waste, fraud, abuse, and misappropriation of public funds is extremely high.

Looks like a number of the findings have already been reported (I'm starting to lose track). Arraignment is coming up this morning for the eight current and former city of Bell officials who were arrested yesterday. Kevin is following that part of the story.

*Here's what Interim CAO Pedro Carrillo says about the state audit: "The findings from the Controller's audit are shocking and detail actions that are reprehensible beyond words."