A KPMG audit Santa Clarita requested after more than a half-million dollars was stolen from a city reimbursement fund for developers noted 17 suggestions for additional controls.

In June, the city announced an investigation that resulted in charges against David Rubira, 40, a former assistant engineer and an eight-year employee of the city. He was accused of stealing approximately $531,037 over the last four years, and terminated June 7.

Click here for the complete audit report.

The audit noted that an additional $2,534 was found in the embezzled accounts.

The city’s response to the fraud included an audit and analysis of internal controls in an effort to prevent any further fraud or embezzlement.

The KPMG report suggested controls for the city’s financial systems that included everything from rotating personnel on different duties, which reduces the likelihood of fraud, as well as surprise audits and dollar-amount thresholds.

The audit produced no evidence that there was any co-conspirators, according to the  report that was released by the city.

The audit reportedly went through about 10,000 emails from Rubira, as well as reviewing hard copies of checks the city had on record going back 5 years.

Rubira oversaw developer funds deposited as part of the permit entitlement process, according to city officials.

The city had a fund set aside to pay developers for additional work the city requires for approved projects. Rubira allegedly took advantage of these funds that were owed to developers, by submitting false invoices, using DBAs, or fake business names, and then claiming funds that were owed back to developers, said Gail Morgan, city spokeswoman. Upon completion of the work required, developers could request a refund of their deposits. Rubira appears to have manipulated city documents/paperwork to avoid detection and perpetrate the fraud. The amounts varied in 58 different checks varying in amounts from a few hundred dollars to approximately $99,000, she said.

The theft was uncovered after the Sheriff’s Department received an anonymous tip, Striplin said.

City officials released the following information in response to the audit:

“KPMG was retained by the City Attorney to complete a forensic audit in May.  The forensic audit process included reviewing documents and analyzing data, as well as interviewing City staff.

The City has already implemented new controls to strengthen internal procedures.  The audit provided the City with several recommendations which the City will also implemented.

The City of Santa Clarita carries a $1 million fraud policy which the City is pursuing. The city also intends to pursue restitution should Mr. Rubira be convicted.