Mayor Jerry Sanders also announced yesterday that his top aide, Ronne Froman, has boosted the contracts of two other firms by $142,000, to $302,000, for technical assistance in preparing the e-mail for use by investigators.

Kroll Inc., a New York risk-management firm hired as the city's audit committee, is conducting an independent investigation related to failures to disclose the depth of a pension deficit now pegged at $1.4 billion.

City officials first acknowledged a range of errors and omissions in bond disclosures nearly two years ago, prompting the Securities and Exchange Commission to investigate potential fraud and the U.S. attorney and the FBI to look into possible public corruption. Three annual audits are overdue.

City Attorney Michael Aguirre said that the process of giving the U.S. Attorney's Office access to the electronic database began yesterday and that SEC officials will decide today whether they want access to the information.

Aguirre, who has access to the database and has criticized the consultants' slow progress, says 90 percent of it is "irrelevant information" not related to investigations into the city's pension or wastewater systems.

The council gave a Washington firm, Electronic Evidence Discovery Inc., $727,500 in September to create the repository for the audit committee. Yesterday's increase boosted the contract to slightly less than $1 million, although Froman is tasked with ensuring that the additional costs are necessary.

Councilwoman Donna Frye voted against the contract both times.

Kroll and New York lawyers from Willkie, Farr & Gallagher, which represents the audit committee at city expense, have billed the city $7.8 million for a probe they now expect to last through May and cost up to $11 million more.

Sanders repeated a familiar refrain yesterday that he won't authorize that money until Kroll gives the city a final timeline, work plan and budget.

"The city will not give a blank check to anyone," Sanders said.

Councilman Scott Peters said the consultants will return to the council Jan. 17 for an update.

Yesterday, Sanders sent them a copy of a new report by City Auditor John Torell that criticizes the city's internal financial reporting controls. In the report, Torell says such factors as error-prone data entry and communication breakdowns between departments make it impossible for him to ensure the accuracy and timeliness of the city's financial reporting.

Councilman Jim Madaffer said the city's "lousy accounting system" is "one step above abacus" and suggested a replacement could cost $30 million.

The city has not issued an annual audit for three years – a delay that has sparked Wall Street to slash or suspend the city's credit rating and derailed city borrowing and capital projects.

Sanders said a senior official with the accounting firm KPMG has assured him that it will complete the city's long-delayed 2003 annual audit and that it supports the deliberate process the mayor has outlined to complete Kroll's investigation.