Print

Email story

Comment

Email editor

City says need for auditor in the past

Without one since 2001, officials say, the job has been getting done in other, and less expensive, ways than keeping one on staff.

By NORA KOCH
Published February 21, 2005

TARPON SPRINGS - In 1987, city voters decided to create a job for an internal auditor so the city would have its very own watchdog.

At the time, external auditors had suggested Tarpon Springs officials add the position to the payroll to keep tabs on city finances and point out waste or inefficiency.

Nearly two decades later, city officials say their internal functions have evolved to the point that the city no longer needs to keep someone in-house looking over their shoulders.

The city hasn't had an internal auditor on staff in four years, but city officials say the job is getting done in other ways. Nowadays, they say, state regulations require thorough financial audits by outside companies, computer systems perform checks better than humans, and an outside consultant can provide operational assessments more cheaply and objectively than someone on staff.

Commissioners, staff, and members of a board that reviews the charter every five years say the city charter needs to be changed again to reflect today's auditing needs and practices. On March 8, they will ask voters to delete most of the duties currently attached to the internal auditor job.

"The system, as far as auditing, is much more complete today than it was 15 years ago, even five," said former Mayor Frank DiDonato, who chaired the Charter Review Committee and is running again for a commission seat in the March election.

But another former mayor and a current commissioner say they believe the city still needs an internal auditor on staff.

Former Mayor Anita Protos believes Tarpon Springs is violating its own charter by not keeping a staff internal auditor.

"The citizens spoke, they wanted the internal auditor," she said, noting the 1987 referendum. It's a safeguard, she said, "for the citizens and the taxpayers, for the government."

City Commissioner Peter Dalacos also wants more oversight at City Hall.

"We have to basically take the city manager's word that whatever is presented to us is backed and, in a sense trust them that what they're telling us is the absolute truth and everything is hunky dory," Dalacos said.

Currently, the city charter says the internal auditor's duties include preparing an annual audit calendar, reviewing revenue sources, verifying safeguards for city assets, checking for compliance with federal, state and local laws, testing computer applications and security.

As proposed, the position of internal auditor would remain in the charter, but most of the duties would be deleted. The only responsibility that would remain would be to do independent audits that would "highlight operational deficiencies, recommend improvements to ensure city resources are being used economically and efficiently and report any deficiencies or noncompliance issues to management for corrective action."

Tarpon Springs hired its first internal auditor in 1988. The last left in 2001 after working for only a few weeks and was fired because of a personality conflict.

City officials decided not to fill the job. A year later city attorney John Hubbard wrote a memo to then-mayor DiDonato that the position could be filled by a full-time or part-time employee, or by a worker on contract. He also noted that "the city has an external auditor, as required by state law, to carry the burden of doing the financial audit in the city."

Since then, the internal auditor's desk in City Hall has been empty, and the city has turned to outside consultants to fill the role.

The city uses the external auditor to complete the financial part of the job, and has hired an independent contractor to analyze the management practices in specific departments.

For the 2003 external financial audit, Wells, Houser & Schatzel, P.A. was paid $33,800, and will be paid $34,200 for the 2004 audit.

Consultant James LaRue of LaRue Planning & Management Services was paid $34,770 for an operational assessment of several departments that was completed last year. He will get $38,325 for a second contract, in which he will take a look at additional departments, including building services and the planning departments.

After LaRue finished the first assessment of the Public Services and Cultural and Civic Services departments, the city realized $495,504 in savings, according to a July 23, 2004, memo written to the city manager by Judy Staley, the city's research and information officer.

Between LaRue's recommendations and changes suggested by staff, the cultural and Civic Services department saved money with changes including increasing memberships, ticket sales and cash ads, library book sales, and renting the heritage museum office, according to the memo.

In the Public Services department, officials saved money by freezing positions and making changes at the golf course.

City officials maintain past internal auditors did such thorough and long-lasting jobs in the position that there just isn't enough work for an internal auditor to fill a 40-hour work week, finance director and former internal auditor Arie Walker said.

Using an outside contractor to analyze management practices and compliance issues is less expensive than a full-time employee who receives benefits, and reduces the chance of interpersonal conflicts, City Manager Ellen Posivach said.

"It's totally independent and can be, I think, more objective than having somebody who is on our payroll," Walker said.

--Nora Koch can be reached at nkoch@sptimes.com or 727 771-4304.

[Last modified February 21, 2005, 01:32:19]