Besides raising utility rates (Items #47-54) and hiring a new city clerk (Item #60) the council is also proposing this (Item #45);

The proposed ordinance removes any mention of an internal audit job title. The proposal also includes language that allows for a co-source internal audit function.

After a brief discussion with the Audit Committee they have decided to move forward with using outside services for Internal Audit. I am adamantly opposed to this. While other communities do this, it is rare. They either have NO internal audit or an actual internal auditing department.

I do understand that every community has to weigh their options when it comes to this department, but we are not making this change because of evidence of improving the system or to save the city money this is being done out of utter laziness of the council. They should do a national search to hire an Internal Audit manager with audit experience and 1-2 more internal auditors. Instead spending the council’s budget on monogram’s shirts (that they wear under their corporate monogram’s black sleeveless puffy vests) they should hire a consultant to provide them applicants. If we got around 200 applicants for city clerk, I would think a national search for auditors would be gang busters!

BTW, the word ‘Internal’ is in the department name!

I have no problem letting outside entities take a peak at the work the internal audit staff is doing, but we should not be jobbing out this important department out of laziness.

5 Thoughts on “Sioux Falls City Council plans to deconstruct Internal Audit

  1. D@ily Spin on June 5, 2023 at 6:44 pm said:

    It’s a tax and spend economy dependent upon rapid regional growth. Auditing gets ignored while there’s cash flow. The big surprise will come when there’s a return to slow growth. Then, will be services shortfall such that an auditor staff will be appointed so the mayor escapes blame.

  2. Fear & Loathing in Sioux Falls on June 5, 2023 at 9:49 pm said:

    Why do we trust auditors? Who audits the auditors? Internal or not, are we not at their mercy? Audition, auditorium, and auditor all come from the same root origin. One is an act, another a room of the subjected, while the former is the act of reviewing what has been done or witnessed. If you are putting on an act, then who are you to be a critic, especially if you are a part of the audience with special claimed rights to review?

  3. Mike Zitterich on June 5, 2023 at 11:50 pm said:

    I do not know if its all important to have an internal audit department under the city council. The charter by itself, gives to the entire COUNCIL the abilkty to investigate, and audit All Departments, Offices, Agencies, Corporate Partners of the City. They collectively as one group can perform public hearings anytime they wish…THey do have access to all the Financial Documents, and other informaton anytime they so choose, they also have subpeona powers.

  4. l3wis on June 6, 2023 at 4:52 am said:

    Let’s see, the council has a couple of salespeople, a doctor, a pastor, an IT specialist, a lawyer, and a vitamin peddler. Doesn’t seem any of them are a certified auditor AND this is why we have an internal audit department. The city council needs to figure out employee retention before they start diving into doing their own audits.

  5. InternalAudit? on June 6, 2023 at 7:50 am said:

    A legislative body under our charter must be allowed to set policy using untarnished audits. Our lazy council and mayor do not seem to understand the need to take advantage of the investigatory arm for clean data.

    The best frauds start with the taking home of the first pencil, when no one catches the on to the missing pencil, two pencils disappear. When two pencils can disappear, why not take something bigger?

    Remember the missing warranty from the Events Center when Huether needed to get the wavy and rough floors ground to cover-up his mistake? We ended up with crumpled up and leaking oil can siding on the outside.

    In other words, Sioux Falls has millions of dollars missing over time and our city council is to afraid or ignorant or may be part of the scheme to steal from us. Either way, the schemers are going to be happy to hide more from the taxpayers and get themselves richer. One pencil, one box of pencils or $115,000,000 at a time without any possible oversight.

    MLZ does not understand how deep the fraud operates in Sioux Falls and South Dakota. He sits there and pretends we can trust our leaders. A real democracy as Reagan stated must trust but verify.

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