SF City Council

Will the recommended new Internal Auditor be announced today?

Usually on Friday afternoon, the Sioux Falls city council announces their agenda for the following Tuesday meeting. They are having a ‘special’ meeting next week to approve the special funding for the Lotta neighborhood (which I think has the full support of the council, though there may be some back and forth about where the money is coming from).

City Hall moles tell me that the agenda will also probably include a resolution to hire the new internal auditor, and here is the kicker, they are moving from a city department to work for the city council.

If this is the case, can you say ‘Conflict of Interest’?

The ENTIRE Sioux Falls City Council needs to be involved in new hires

A brief history of how employment works with the city; If you work under the umbrella of the mayor, he has the power to appoint his directors, he also has the power to approve any hire with the city. I was told once that the former mayor used to sign off on EVERY new hire. I’m sure PTH doesn’t go that far, but you get the gist. The HR department mostly assists in those hires doing the heavy lifting of sorting thru resumes, background checks, drug tests, etc.

It works differently if you work for the city council. The city council has a very small staff which includes three city clerks, operations manager and legislative manager. They also are in charge of the internal audit department (which formerly had 3 people, but I am not sure how many now).

This means the city council ALONE has the power to hire and fire these employees. And it takes a vote of the council to hire and fire.

So fast forward to the search of the new internal auditor position that the city council is currently looking for. Some councilors have told me that not ALL of the city council has been involved in the search and interview process. In fact, the HR department who oversees the mayor’s employees, has been assisting in the search, which I think is a conflict of interest. I’m okay with them doing the necessary background checks, but they should NOT be recommending or assisting in the search process, this should be entirely on the council with the assistance of their current staff. The operations manager is very capable of helping (and probably has been involved).

Ideally, after all the resumes have been collected, the ENTIRE city council ‘SHOULD’ be able to view these applicants either in executive session or in confidential emails. The ENTIRE council should be narrowing down their choice before ultimately picking someone or offering the job to someone. As I understand it, the chair of the audit committee, Neitzert, has taken it upon himself, with the assistance of the mayor’s HR director to find a suitable applicant. If I was a councilor who was left out of the application process I would push back hard on the way this is being handled. I would also VOTE no against any recommendation that wasn’t vetted by the entire council. And while voting on the new hire in the public meeting, I would be very vocal about being left out of the process and why they are voting against the new hire.

The city council doesn’t get many opportunities to hire their own staff, so when they do, that process should be open to the entire council. Just because you may disagree with a certain colleague is all the more reason to bring them to the table. Not to compare this to Lincoln’s Cabinet, but he brought on a whole host of dissenters to get results. Having 16 eyes looking over the applications is better than 2.

As they get closer to picking the new internal auditor it will be interesting to see how they are rolled out.

Is a local TV reporter ‘trying’ to moonlight as an escort?

Last night at the Sioux Falls City Council meeting, sex trafficking watchdog Sierra told the city council during public input that she was concerned that a local TV reporter was trying to sell escort services online on an internet dating site. She said she made the station aware of the person but they seem to be in denial since the reporter still works for them. I guess they claim this person’s photo was taken from them without permission and used in this manner. A lot of he said, she said going on.

Sierra commented, “If the media was paying their employees more competitive wages they wouldn’t have none of their news reporters looking for Sugar Daddies on these websites.”

I was made aware of this last week and have seen some of the ads. While it may be a ‘gray area’ since this was on a dating site, Sierra commented that it still is a form of prostitution.

I’m willing to hear someone out, especially if they think their identity is being stolen from them. I guess if I was in a situation like this (LOL, no one would use a half-naked photo of me unless it was for a weight loss website) I would report it to the police immediately without hesitation.

We will see how this plays out.

*I am not posting the name of the reporter or the station, so if you make any guesses in the comment area they will be deleted.

 

 

Pay to Play, Sioux Falls City Councilor Stehly proposes resolution eliminating registration fee for housing summit

She talks about it above during the open discussion at the city council informational. She requested the mayor’s office to waive the registration fee (with the option to pay for breakfast and lunch if they want it) and to video tape the event. They refused her offer. So Theresa and Pat are bringing a resolution forward. I’m sure it will get voted down 5-3 as usual.

I love it on one hand when the administration and leadership talk about how transparent they are but when given the opportunity, they fight it. Then they scratch their heads wondering why people think they are not transparent.

We need an Inspector General NOT an Internal Auditor (Guest Post, Bruce Danielson)

The Internal Audit department was established after it was discovered we had an out of control administration. The plan for establishing an Internal Audit department came about because laws were broken by city personnel with no process to make sure it could not happen again (The offenders were never charged with a crime because council chickened out, and the main offender got re-elected to a 2nd term). The framers of our government did not see a leader or employee, willing to destroy the government for the chance to make a personal buck no matter what, in the Home Rule plan they put together.

An Internal Audit department was developed to be a place to go, to verify projects were completed on the up and up. If the City Council wanted to check a contract or process, they were able to have it added to the audit schedule for the year. The Internal Audit staff was not to change the mission or the audit plan for the year. What we have learned over time is how the Internal Audit staff either changed the audit plan because the work was “too hard”, complicated or they didn’t want to do it.

What we have found since the Internal Audit office was set up, staff has never functioned as it was proposed. Internal Audit has become a place of semi-retirement with no expectation of getting any meaningful work done. Internal Audit should not be the go along, get along function as it has been for many years. The Internal Auditor staff or its function should not be feared. If the office or function being audited is on the up and up, an audit should be welcomed. If the department has no issues, they should be recognized for running a tight ship.

The Internal Auditor should never be transferred from a Sioux Falls city department staff. An Internal Auditor staff member should never be put into the position of auditing their prior office, co-workers, family or friends. To think anyone in the Internal Auditor office would be hired out of the finance or public works or city attorney office or any other office now or in the future is just plain wrongheaded and presents a huge conflict of interest.

The Internal Auditor office in Sioux Falls must be a true auditor office. It should not be led by a CPA with bookkeeper bees for staff. The Internal Auditor office could be led by an engineer with a bookkeeper and an investigator. It could be a mix of any number of people from many different types of backgrounds. Curiosity and the ability to think outside the box are probably more important than their ability to build a spreadsheet.

I firmly believe we need an Inspector General office more than a happy clappy Internal Auditor cheering on questionably legal city government actions many of us have seen over the years. The citizens need to have an office they can approach with questionably illegal issues and not have them buried in a bureaucracy, never to see the light of day.

Internal Audit should not be the resting spot of guilty consciences, it should be the blunt force that would come down on a wrong process or person because curiosity ruled the day and found a hidden issue. Finding problems and fixing them is a good thing, it shouldn’t be perceived as a ‘bad cop’. As citizens WE own the government, it’s our money. Anything we can do to save taxpayers money by fixing or streamlining processes should be the ultimate goal. If someone’s feelings are hurt in that process, maybe they need to find another job in the private sector.