SOUTH EL MONTE >> The city has received yet another criticism of its financial management, this time from the United States Department of Justice.

In a letter sent to the city on July 28, Department of Justice auditor Lindsay Taylor said the city has been designated a “high-risk grantee” as of Feb. 20, 2015, and has yet to remedy the problem. The designation comes as a result of the city’s failure to address a concern in its fiscal year 2012-13 financial audit finding the city did not properly document its financial practices.

Neither the “high-risk” designation nor the Department of Justice’s efforts to seek information from the city have been discussed by the City Council, said Councilman Joe Gonzales.

Its first mention, Gonzales said, is on the agenda for Tuesday’s City Council meeting in a report on financial audits the city is currently undergoing.

“To say things are transparent at City Hall is laughable,” Gonzales said. “We’re only now finding out about audits on the city, when ones like the Department of Justice’s have been going on for a long time.”

The embattled city of South El Monte has faced questions about corruption in the past few months, with a special audit released in late June revealing the lax financial oversight allowed contract consultants to defraud the city. Then, former Mayor Luis Aguinaga admitted to accepting bribes in exchange for city contracts, as detailed in an agreement he signed in late July to plead guilty to a federal bribery count. Aguinaga resigned as mayor Aug. 9.

The latest question stems from $47,900 from the Department of Justice’s Edward Byrne Memorial Justice Assistance Grant Program provided to the city between 2010 to 2013.

Grant funds are intended to be used for “local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice,” according to the grant program website.

The Department of Justice will only remove the “high-risk” designation once the city provides evidence proving the audit’s concerns have been addressed or that significant progress has been made toward addressing them. Interim city Finance Director Michael Blazenski submitted two documents but has yet to receive a response, he wrote in a staff report.

In June, State Controller Betty Yee’s staff began auditing South El Monte’s use of state gas tax funds in fiscal year 2014-15, another instance that Gonzales said was not brought to the City Council’s attention. A letter notifying the city of the audit’s details was sent to former finance director Joe Nocella and Aguinaga.

City Manager Tony Ybarra did not respond to requests for comment on why audit details were not shared sooner.

Outstanding audits is only one topic the City Council is set to discuss at its meeting at 5:30 p.m. Tuesday. Here’s a rundown of the other major items on the agenda:

• A decision whether to appoint a new mayor or hold a special election. If an appointment is not made before Oct. 8, a special election must be held.

• Discussions about the title of mayor being rotated among councilmembers instead of elected separately and whether the mayor and council should have term limits.

• Discussion about putting all city contracts with consultants, service providers and suppliers through formal, competitive bidding processes within 30 days of the Tuesday meeting.