Entries Tagged 'Audit' ↓

Sioux Falls City Council Agenda, Tuesday Oct 11

MEETING CALENDAR

Informational Meeting • 4 PM

• Downtown Parking Ramp Update by Erica Beck, Chief of Staff

• Parks and Recreation – Ice Plex/Tennis Center Updates by Don Kearney, Director of Parks and Recreation

Regular Meeting • 6 PM

Item #6, Approval of Contracts, Sub-Item #16, Professional Services Agreement for Site Selection, Study for Sioux Area Metro Consultant will complete a site selection analysis of a maximum of five sites, including the existing site and planning-level cost estimate for a new transit office and garage facility for Sioux Area Metro. TSP, Inc., $94,600. (while the city may want to tell you that they are just considering moving the Bus Barn, it is pretty obvious that they plan to move it for a developer that wants the current location. There is absolutely nothing wrong with this site, it just needs to be remodeled and upgraded. I also find it a bit odd with the hundreds of city employees that work in engineering and public works that we can’t study a proposal internally.)

Item #12, 1st reading, Background & Objective: Ordinance supplements the Sales Tax Fund by an additional $2M for arterial street improvements resulting from platting fee projected revenues in excess of budget expectations and $70K for Police to purchase a vehicle using federal grant dollars; and supplements the General Fund by $100K for Fire due to high fuel costs; $500K for Parks and Recreation primarily due to high fuel costs and spring storm damage repairs; and $400K for the Planning Department based on higher than anticipated lodging at ESF BID tax revenues that are subsequently transmitted to Experience Sioux Falls. (The $500K for parks cleanup is kind of surprising since we are told all the time that the city keeps track of storm cleanup so they can get Federal reimbursement).

Item #13, 1st Reading, Background & Objective: This is the development agreement between the City and Nielson Development for TIF #26. This agreement is for up to $2,140,000, plus financing costs of eligible expenses to assist in funding the development activities required to create an accessible housing subdivision, which includes the site improvements infrastructure, utilities and professional services to develop the site. The end result will include 65 single-family housing units that will be priced below the South Dakota Housing First Time Homebuyer pricing. (this is a TIF that will NOT be passed on to the new homeowners. It is simply keeping the costs down for the developer and the banks that are funding the development. It has also been stated in the media that this will do nothing to provide affordable housing.)

Items #14-15, Resolutions, Background & Objective: Resolution to approve a new five-year facilities management agreement for the Events Center Complex with ASM Global Arena Management, LLC for the period of January 1, 2023 through December 31, 2027. ASM Global Arena Management, LLC is the current facility manager for the Events Center Complex.

Background & Objective: Resolution to approve a new five-year food and beverage services agreement with Ovations Food Services for the period of January 1, 2023 through December 31, 2027. Ovations Food Services is the current food and beverage service provider for the Events Center Complex.

(Notice in the audit meeting on Thursday below that they have audits of these facilities ready but are NOT releasing the information before the 1st reading tonight. I have also implored the council to pass a bond ticket fee of at least $5 per ticket to help pay down the bonds. Councilors and management have complained that promoters would not come here if that attached ticket fee applied. Hogwash. The fee doesn’t take profits away from the management company, the promoters or the artists, it is an additional fee paid for by the very people who use the facility. If you can afford a $150 dollar ticket fee and $9 Bud Lights, you can afford the extra $5 to help pay down the bonds.)

Audit Committee Meeting • Thursday, October 13, 2022 at 4:00 PM

I find it interesting that the Audit Committee is reviewing audits of the Denty 2 days AFTER the 1st Reading for Contract renewals for the Denty at the city council meeting. There is also NO attached documents in the meeting link letting the public know what is in those audits (I’m sure they will magically appear on Wednesday). Makes you wonder what is in the audits that they cannot show they to us before the meeting tonight.

UPDATE II: This is why the Sioux Falls City Council internal audit division is important

UPDATE II: It is interesting that someone can be PUBLICLY appointed but when they depart from their job it is all of a sudden a personnel issue;

Sioux Falls’ former internal audit manager, whose appointment drew controversy and conflict of interest claims from city councilors three years ago, has been serving in a different position since August, according to city officials.

But the reason for the move isn’t clear.

Asked whether she had applied for the position or been moved to it, and whether the move had anything to do with her spouse’s position in the city, O’Toole said that the city could not release confidential personnel information.

The city council publicly appointed her and they have a duty to tell the public why she decided to leave council to work for the mayor. It could be as simple as a press release.

But three years after her appointment divided the council, Nelson is now serving as a housing compliance manager for the city, according to Human Resources Director Bill O’Toole

The topic was raised in an informational meeting of the council on Tuesday, as the city’s internal audit program presented findings from several recent audits.

Starr asked about the lack of a statement from Nelson in a damage recovery billing audit, saying it needed to be more clear that she had not been involved in the audit.

During the discussion, Starr said, “the public doesn’t know she’s gone, so we can’t use that as an excuse.”

The hatefest towards transparency continues in city government.

You have to wonder why the mayor would hire Nelson while she was serving as the Internal Audit Manager? Did the council approve of this? It would be one thing if she quit to run her pet store or she was terminated, but if she quit on her own fruition why would the mayor promote her and take a council employee? Weird stuff.

UPDATE: During the informational meeting today, Councilor Starr did mention that the internal audit manager was no longer working for the city council. During public input I asked how long the council was going to wait before they told the public.

Even though it seems the department is without management (still waiting for the city council to tell us if a very publicly appointed ‘Rockstar’ internal audit manager has left us) the two internal auditors still working for the city council seem to be accomplishing the important work. They did two audits, one on using Lewis Drug for Falls Community Health pharmacy needs;

Finding 1: Lewis doesn’t implement any inventory optimization processes, such as product
minimum/maximum levels, which makes it hard to ensure sufficient inventory levels.
Finding 2: Lewis does not utilize a ‘tracking system’ to retrospectively review dispensing
reports and verify patient eligibility, which is a requirement of the agreement.
Finding 3: 20% of prescriptions tested did not have a designation that the patient was
eligible for 340B drugs. It is a requirement of the agreement that Lewis only dispenses
340B drugs when the prescription form designates the patient as 340B-eligible.
Finding 4: Lewis is not currently providing all of the required quarterly reports listed in the
agreement.

The other audit was on how the city invoices damage repair to city property;

Finding 1: Materials invoiced with an overhead charge in one City department
Finding 2: Estimated labor rates utilized for invoicing in one City Department
Finding 3: Billing for damages to City property claims procedures not formally
documented

Once you read the details of the audits (that reveal NO fraud) you can assess there are many operational issues that needed to be addressed. Besides the city pulling damage repair estimates from their butts you kind of wonder how Lewis manages their private clientele if they do this poor of a job with Falls Community Health?

Just looking at these two audits shows us why internal audits are important, with or without management.

UPDATE II: Sioux Falls City Council Audit Committee meets Thursday, August 25

Normally this wouldn’t be a blip on the radar, but there have been rumors swirling around city hall that the internal audit manager left, I guess we will find out on Thursday.

UPDATE: You will notice that the agenda is NOW posted, and while there is no mention of the internal audit manager leaving the position, most of the presentations are being done by two of the other existing auditors including the committee’s handbook. We will see if this will be brought up in the committee’s new business remarks at the end of the meeting.

UPDATE II: There was NO mention of the audit manager leaving during the meeting today though the two remaining auditors who had to do the presentations did touch on how the assignments are being ‘covered’. Audit board member Dean Buckenberg asked about being able to hit goals with being short staffed. Still no mention that the manager left.

Most people would wonder what that means?

Rumor has it not only did the audit manager quit, she went back to work for mayor, not sure if it is in the housing or finance department.

I wonder how long the City Council will continue to try to hide the audit manager leaving? Surprised she might be working for the mayor considering she may want to fulfill her life long dream of owning a pet store and being a ROCKSTAR! (Neitzert quote).

Is another City Manager bailing on us?

I remember when we were told how incredible our liquor cart boy Technology Manager was going to be and there was push back from concerned councilors. He got hired anyway. Then he left, and recently his replacement left. You know, all that ‘building a team’ bullsh!t Paul feeds us.

Remember when we were told how great this person would be as our internal auditor even with push back from city councilors.

Now I am not sure if Shana Nelson is quitting the position, but I find the above employment listing interesting since I thought they were fully staffed in the auditors office.

But I do know that while her and her husband Matt Nelson (parking director) are full-time paid directors with the city they are also owners of a very busy pet store franchise. So how is it that you can both work as full-time city managers and manage a retail business? At least we can’t accuse them of drinking at 3’O Clock in the afternoon at a DTSF bar on a weekday like two other directors were a couple of weeks ago (yeah, I saw you Ron Swanson).

Like I said, I am only speculating that there will be turnover in the Auditor’s office, again, but if it is true maybe this time they will actually do a national search for someone who is qualified to run an auditor’s office, or at least one that actually does audits.

City of Sioux Falls Meetings, Dec 6-8, 2021

Audit Committee • 4 PM • Monday 6th

• Update on External Audit of City’s 2021 Financial Statements by Eide Bailly, LLP

• Annual Risk Assessment

• 2022 Proposed Audit Plan

Sioux Falls City Council Informational • 4 PM • Tuesday 7th

• Engineering Design Standards Updates

• 2021 Crime Trends & Statistics by Police Chief Jonathan Thum (So now the City Council is finally getting a presentation yet still NO links to the Power Point presentation).

Sioux Falls City Council Regular Meetings • 6 PM • Tuesday 7th

Item #6, Approval of Contracts,

Sub Item #7, RR Crossing Improvements, $82K (I would assume this has to do with some of the development going on with the RR Redevelopment. I recently had a few beers with a business fellar who works closely in this industry that flat out told me any major changes to rail traffic through this area MUST go thru the FEDS.)

Sub Item #11, Zoo design for Lion exhibit, $482K (I find it curious this is going thru Parks and Rec. So now our parks budget is being used to ‘Design’ things for the Zoo. Just think of using this money for actual improvements to our FREE parks system?)

Sub Item #17, (you will notice this has to do with a payout to the Chamber for BID taxes since the separation from the CVB that NO ONE in the media wants to talk about. There is also NO mention of the dollar amount).

Item #40, 2nd Reading, the mysterious alcohol licensing fees.

Item #47, 2nd Reading, Fire sale for parking lot for UN-affordable housing DTSF.

Item #50, 1st Reading, approving new districts in Sioux Falls

Item #53, Resolution taking money from streets to the Facade Core Revitalization Program, $120K, but who is it going towards?

Sioux Falls Parks Board Meeting • 4 PM • Wednesday 8th

Ironically, this meeting is being held at the Overlook Cafe at the same time as the CRC meeting. How convenient? There is one item on the agenda that sparked my interest under ‘New Business’;

Sanford Parking Agreement – Don Kearney

Not sure what this is about, but maybe it has something to do with the soccer and ball fields they are building right now?

Charter Revision Commission • 4 PM • Wednesday 8th

Well, well, well. It seems the CRC has decided to move this meeting back to 4 PM instead of 3:30 PM like last month. I wonder why? There seems to be a lot more agenda items this time around . . . this will actually be a really interesting meeting. While I support Kirby’s ideas about the mayor, I don’t support rank choice. But it really doesn’t matter because the CRC will KILL all of these proposals anyway.

Sioux Falls City Council Agenda, Oct 4-6, 2021

The City Council and other boards have a full agenda this week;

• The Audit Committee has finally released some audits, been awhile. On Spectra (the people who provide concessions to several city owned entertainment facilities) they found a ton of non-compliance especially with insurance requirements. On the Midco Aquatic Center they have seen an over 50% drop in attendance since 2019 and around a 40% drop in revenue. They were also non-compliant on several fronts and like the Spectra Audit it seems our own Finance Department is not doing regular checks of compliance. For Travel expenses there was several instances of non-compliance. $137,000 travel reimbursements paid directly to travelers (city employees). Many of these results don’t surprise me. I have said the City Manager (The Mayor) is running a rudderless ship and when you have a poor city manager, it results in poor management under that person.

• The Planning Commission has decided to go full rogue by putting every single item on the consent agenda this month. Now items can be pulled for discussion by the Commission or Individuals from the public but I find this startling considering that all items are recommended for approval by the Planning Department and I am sure several Commission Members will recuse due to conflicts. Folks, this is what true cruise control government looks like. I am still puzzled why we even have a Planning Commission.

• The Charter Revision Commission will continue to review the Charter.

• City Council Informational will review building code changes.

• City Council Regular Meeting;

On the contracts and agreements (Item 6) in sub items 17-18 they are paying this consulting firm out of Florida to do this?

And of course sub item #38 where we are reviewing the Human Relations Commission.

The Bunker Ramp is going to bite us in the rear

The Audit Committee of Sioux Falls meets tomorrow, and they have some precarious recommendations about the Parking Enterprise Funds.

As you can see our debt service is extremely high (mostly due to an ill-advised Bunker Ramp). There is even suggestions that parking employees work in other departments.

This is what happens when supposed leaders make very bad decisions. Will we ever learn?

How is the new Minnehaha County Treasurer doing?

I haven’t heard anything concrete, but the rumor is since Swanson took over it is pure chaos. I guess she has been admitting to employees that she in over her head. This is what happens when you elect someone based on the letter behind their name instead of qualifications. Just look at our State Legislature who continues to write bills to enrich themselves and friends while taking freedoms from us.

Swanson had ZERO management experience and from what I am hearing, doesn’t really know what goes on in the treasurer’s office. I could have guessed this after reading her Facebook posts that were incomprehensible.

I guess the Auditor’s office isn’t much better, he isn’t fairing well either.

Folks, this is why one-party rule hasn’t worked for us.

Sioux Falls City Councilor Greg Neitzert and the suspicious ‘blue line’

Have you noticed the blue dotted line between the Operations Committee and the Internal Auditor?

Why is there a dotted line?

Is the Mayor assigning supervisory roles on the City Council?

If Greg is reelected on Tuesday, is he planning to “supervise” the Internal Audit office?

Hmmmmmm.

City of Sioux Falls 2019 COMPREHENSIVE ANNUAL FINANCIAL REPORT

This financial report was released yesterday after the Audit Committee Meeting yesterday.

2019 CAFR DOCUMENT

Remember, this is just a ‘review’ of our financial statements. This is NOT a forensic or investigative audit. In other words they are not digging around for fraud or blatant waste, they are simply looking to see if the actual accounting the city has done matches the statements. A cakewalk for any outside independent auditor.

I have argued for a long time that the city needs to start from zero with their budgeting at least every 3-5 years. That is NOT what occurs now. City departments basically take the budgets from the year before and tweak them. It’s lazy and and wasteful. I also think an investigative audit needs to be done every 3-5 years to look for fraud but most importantly wasteful spending.

This laziness (and greed) is one of the reasons our taxes and fees continue to grow at an astronomical rate. I think the city should run a tight ship that only spends on essential infrastructure and FREE quality of life (like parks). I also think they need to balance their budget each year. If the budget started from ground zero each year, you would see a lot more savings and fiscal restraint. This of course would require city directors, the mayor, and the city council to work at it, and together. I know, lofty goals 🙂