Back on September 9, 2009, our Internal Auditor got screwed. Royally.
The city manager let his contract die by not putting it on the agenda to be renewed. She had huge concerns that his Audit would be very, very, dirty for the 2nd year in a row “because it appears our people don’t know what they are doing." She further stated that, “I think they, as well as me, will ask, ‘where is the Internal Auditor in all of this mess.’”
Now, the internal auditor exposes “messes.” They don’t create them. Scot Menke, our internal auditor at the time, stressed the independence of the position and in order to be effective, that independence could not be impugned.
In the City Manager Report #21 for the week ending October 2, 2009, she used the excuse and concern, as she did yesterday, that “the resource that the City is expending on all administrative efforts is getting the maximum return on taxpayer investment.” She questioned the “cost effectiveness” of having an internal auditor and thus, decided that she had to become much more involved in the financial management of the City to ensure financial reporting and accounting was professional, accurate and timely.
Scot Menke strongly urged the City Commission to restore the independence of the internal auditor in any future internal audit services.
I am assuming that the City Commission was convinced by the City Manager in one of her one-on-one weekly “informative sessions” that we no longer needed an IA and at that point, the City Manager ended the internal auditor position. I don't recall that this ever appeared on an agenda for a vote.
No news is good news. Out of sight, out of mind.
19 comments:
Thanks to the 15 people who read blogs as well as all those who wrote in to the commission, we will now have an internal auditor. Last week it was a 4 to 1 vote not to hire an internal auditor. A lot can change in just one week. With public awareness, people are powerful.
These brainwash sessions need to end.
While we definitely need an auditor after seeing all the bad stuff our city is doing and covering up. The problem with an internal auditor sometimes is that in order for them to protect their jobs, they cover things up too so to not lose their job, so it might not have all the benefits unless you have someone a true integrity and backbone. It looks like our city manager is on the same path she took when at Largo, and will likely be fired or let go from here someday soon too. She seems power hungry, greedy, rude, and doesn't want to listen, but she has all the dias under her spell. How much longer will we need to put up with this? Lynn keep reporting the truth and exposing all this nonsense in this city. While it is depressing and sad, it is helpful for all of us who read and write on here, hopefully our faith in something great can get us beyond all this from might Stanton and the comm with their heads in her butt, loved the picture by the way.
Stanton tells us that the City is in a financial crisis. That means that every tax dollar is critical. No dollars can be wasted. Instead of demanding that the commission appoint an IA she tells the commission that we don't need someone looking over the books or the numbers. The commission, knowing that we are in a financial mess starts to agree with Stanton and you have to ask why in God's name would any elected official not want an auditor at this time in our city's history. After all, they have a duty to protect us from fraud and waste. It is not until the citizens start to make a stink that they agree to hire the IA. My point here is that our elected officials have placed all their trust in Stanton. That's a big mistake. Stanton has too much power and control and she needs to be checked and balanced.
My sister-in-law is a big officer of a large bank. All top level employees are required to take two weeks vacation at least one time each year. What they have found is that employees who never take vacation and work long hours are keeping others from seeing their work A two week vacation allows others to see what you are doing and it helps prevent fraud. Fact is Stanton never takes a long vacation and never lets anyone see what she does. That tells me that things may not be what they seem. The IA must have full authority to see and do what needs to be done outside of the control of Stanton.
The mayor answered Chip Guthrie's e-mail on an IA. See below.
Mr. Guthrie
We funded the position at 75%, because HR indicated it would likely take until December first to hire a qualified candidate. This is not an unusual amount of time to recruit and hire an appropriate high level executive. We moved the expected start date to January 1, 2012 so as not to hire a full time employee and then have them work essentially not a full month due to the holidays. This was done out of sensitivity to our fiscal situation, not to delay or disrespect the position. We also wanted to give each department director an opportunity to create an internal departmental audit of the items they have already identified and are working on with their goals, objectives, and implementation timeline. We asked for this to give the auditor a starting point and to avoid the likelihood of him/her spending time identifying issues that have already been identified and to therefore work more strategically and efficiently.
The position at 50K was apart time position. It was brought up as a possible arrangement, but did not have support from anyone as appropriate. We felt to do so would be paying lip service only to the charter but not allow for an effective auditor. This is a full-time position funded at $90K – less than the previous arrangement per four. Many residents and some on the dais felt the previous arrangement was not as effective as it could have been or should have been and felt strongly that a part-time subcontract situation was not appropriate. As such, we felt the position was important and should be funded at the full-time level.
We will start advertising for the position immediately after the budget is adopted.
It seems you were listening to the meeting. As such, this information should not be new for you. As always, thank you for your comments.
The ONLY thing appropriate for this position is an independent contractor, NOT an employee. NO WAY. You might just as well save the money, Mayor. This will not accomplish a thing.
Auditing is a specialty. You could not, for instance, hire just any old CPA. If fraud exists, we don't want it covered up by an employee no matter who he reports to. Forget about it.
Doesn't a part time IA violate the Spirit & Intent of the Charter, if not the Letter?
I don't think so. It really depends on how much time it takes to investigate certain areas of our processes. Scot Menke did it well while he was an independent contractor on 6 to 8 hours a week at $100 an hour and before the CM tried to shut him up. It was his area of expertise.
I just don't see any reason to keep inventing the wheel when it worked while he was with us at approx $50,000 a year. If he is actually working as an employee, I can guarantee that all his strings will be pulled. Just my belief.
We want this positon to be totally INDEPENDENT with no possibility of being jerked around. And besides, why should we be paying benefits, etc.? This is just so stupid and the commission has been manipulated once again.
If the IA is an employee,then they are under someone's thumb. Are you Commissioners really too dumb to understand this?
I have a question. Is the City Attorney an employee with a contract that spells out the job and who she reports to? She is hired by the Commission and reports to the commission. The same thing needs to happen with this position. The Auditor cannot be hired by Stanton. Who is hiring this new IA?
Rachael said above that it is going through the HR dept. This will be a city employee--NO? Yes?
I think you would have to run the advertisement through the HR department. The CM should have little to do with the scope of work for this position. She already said she didn't want them disturbing the folks at our OMB or Finance. Sci=ott Maxwell quickly chided her for that comment. Golden said she didn't want individual commissioners asking the IA to look into anything. It gas to come from the whole commission. Anyone see where this is going?
Each commissioner and the Mayor will be the employer for this individual. Therefore, if three don't like what one asked the employee to do, they can vote to fire the individual. Stay tuned...
If the IA is "independant" like our city attorney,then we're really screwed. Humpries can't take a piss without Stanton's approval. Nothing will improve until we get rid of Stanton and her puppets.
Yes, it will be a City Employee just like Stanton is a city employee or Humphries. The only difference is to who they report.
It is arguable who the City Attorney reports to, although she is supposed to report to the Commission. It seems she can't do anything without the CM's blessing. For example, can you imagine a City Attorney telling your commission that you are not required to fund a Charter Required Internal Auditor? Is it just coincidence that the CM vehemently does not want this position filled?
the fact remains that as long as the CM controls the purse strings, then the internal auditor is beholden to the CM, and that is where the trouble begins and ends
Does the Commission have the right to NOT Fund the CM? We are finalizing budgets correct? Lets cut that very expensive line item right now until further notice...
http://www.theiia.org/
Lynn- here is the website for the internal auditor society. Typically internal auditors are employees of the company they audit. However, their direct report is usually the Board of Directors or in this case the Commission. It is a full-time position and not a $100 an hour job.
Perhaps that is for your typical city with your typical city manager. :)
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