Thursday, April 26, 2018

Development Corporation Compliance Audit Goes Internal

Assistant City Manager Michael Dane informed the City of San Angelo Development Corporation Board that the compliance audit shifted from an external audit contracted to the city's professional auditor to an internal audit.  He stated:

Roland had been working to have compliance audit done by CPA firms and because of the large number of contracts he was having difficulty finding a firm that was independent.  Rather than continue to chase that rabbit down the trail I asked the city's internal auditor to help get us caught up.  So that's why he is here before you today.
Actually, the Development Corporation approved the switch from an external to internal auditor on October 25, 2017.  The change is embedded in the city services agreement, approved six months ago.

Audit COSADC agreements, administrative files and financial records for compliance with relevant requirements and regulations.
Previous agreements had the city's external auditor conducting the contract compliance audit.   

CITY ’s audit Agreementor will audit COSADC Agreement, administrative files and financial records for compliance with relevant requirements and regulations
The Development Corporation will pay the city $578,000 for services for the current fiscal year, up over $100,000 over the last two years.

Former City Councilwoman Elizabeth Grindstaff serves on numerous city boards.  She remarked later in the Development Corporation meeting on a different Dane response:

"I never got away with answers like that."
They do now, with great regularity.  Watch peer Assistant City Manager Rick Weise's presentation near the beginning of the meeting.  He phoned it in.

I found it amazing how competent business people defer their management expectations when dealing with city staff.  Mayor Alvin New and Councilman Kendall Hirschfeld looked like they might burst when city staff stonewalled or failed to show basic competence.  Yet, they never did.   

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