UPDATE II: At their discussion today, Council Vice-Chair Alex Jensen said the reason audits have been down is because of staff turnover. They currently have only one full-time auditor. So why not hire more people! What a concept. As the city’s human resources department has been handing out hiring bonuses like candy maybe it is time to take that approach to finding more auditors. The city isn’t looking to hire a brain surgeon or a rocket scientist, if you hire a employment consultant to do a national search I can almost guarantee you would have qualified applicants within 30 days.

The committee voted to explore a hybrid model for the internal audit in which they would have internal staff and external auditors. I am adamantly opposed. It would make more sense to just hire a couple more auditors instead of fiddling around with private CPA companies auditing our departments. The name of the department is ‘internal audit’ and it should remain that way, internal.

If you look at the agenda for Wednesday’s Audit Committee meeting you will see this;

• Internal Audit Outsourcing

I was told today by a city hall mole that the council was unaware of this recommendation and that is likely coming from *COUNCIL LEADERSHIP.

While we do use some outside auditing for the city it is important to maintain an internal department that is a check on the administration and it’s financial systems. The council needs to be in control of this department. If we outsource internal audit there would no longer be an internal city government check on the mayor’s/department’s spending power.

6 Thoughts on “UPDATE*II: City of Sioux Falls considering eliminating internal audit

  1. Mike Lee Zitterich on February 27, 2023 at 5:06 pm said:

    Technically, the City Council can conduct it’s own Investigative Audit of all Departments, Offices, Agencies, and Corporate Partners any time they so choose. I believe the City Council should adopt a Financial Action Task Force each year between April 1st through June 30th, allowing them to adopt, their own City Budget, and Two Year Capital Plan (Two Year Election Cycle). Where the Mayor provides his State of the City Address on July 1st, the Council Chair should provide a Council “Response” outlining their Financial Action Plan for the Next Two Years. This then sets up the Budget Season during July 15 to August 15, while they debate the two completing budgets. An annual investigative audit by the council would allow them to investigate all things related to the finances.

  2. Merrill Gate on February 28, 2023 at 12:51 pm said:

    Financial Action Task Force (FATF): That would look so great on my resume!

    A “‘Capital’ Plan” is doable. But “Financial Action Plan”? That sounds more like a Soviet Gosplan.

  3. The Guy From Guernsey on February 28, 2023 at 5:48 pm said:

    Yah, let’s discontinue internal audit control and examination at the same time the City of Sioux Falls dumps millions into DSU-applied Research Corporation, the newest generation of “public-private partnernership” designed to launder government funds to the pockets of select people.

    I mean, what could go wrong?

  4. Steve on March 1, 2023 at 4:41 pm said:

    Mike, please capitalize more random words for no reason. Thanks.

  5. D@ily Spin on March 2, 2023 at 9:06 am said:

    Cook your own books. Outside accounting is honest. They shouldn’t have to accept and be responsible for city irregularities.

  6. BrOOK COOKER on March 2, 2023 at 1:47 pm said:

    Shrinks do not recommend ending internal audits. If you are an auditor, however, but nuts, then the math must be crazy. #AlgorithmFromHell #Calculative #Manipulative #WheresMyEraser? #PencilPusher. #MidnightOil

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