Plans to reform city’s auditing process stalled for more details

Initiatives before Public Works Committee attempt to address unflattering findings

A pair of proposals for reshaping watchdog functions at City Hall stalled Monday at the city Public Works Committee as councilors variously said they wanted more detailed information on how each would work, where there might be overlap and whether either would improve upon the city of Santa Fe’s existing audit framework.

Both proposals emerged under the specter of a recent external assessment that identified a lack of internal controls and found an environment ripe for fraud or waste in municipal operations.

The initiatives reflect policymakers’ desire to show responsiveness to that report’s slew of unflattering findings, though the committee discussion Monday made clear both proposals have a ways to go.

A resolution to place a question on the March municipal ballot asking voters whether the city should establish an independent office of inspector general was postponed a month by councilors, who said they wanted to hear from Albuquerque’s inspector general about how such an office might function and to discuss the prospective costs and duties at greater length.

To appear on the March ballot, the resolution would have to be approved at the Dec. 13 City Council meeting.

There appeared to be some support for the idea, sponsored by Councilor Joseph Maestas, a candidate for mayor.

“I think we need to be diligent on this and show people here in Santa Fe that we are taking this seriously,” said Councilor Ron Trujillo, another candidate for mayor.

Councilor Peter Ives, also running for mayor, said more clarity is needed on what an inspector general’s office would cost.

He referenced a 2014 ballot question that established a stronger role for Santa Fe’s mayor. That ballot question included only a placeholder salary for what a full-time

mayor would be paid.

“It’s unfair to ask people to consider something without understanding what those costs would be,” Ives said.

Meanwhile, proposals that would abolish the city’s internal audit department, outsource the department’s functions to an external accounting contractor and strengthen the city’s fiveperson advisory audit committee were postponed indefinitely on a 4-1 vote, with Ives in the minority.

Committee members said they would take up those initiatives again once they had reviewed an ongoing external audit and the work compiled by an accounting firm currently assisting city finance staff.

The proposals remain scheduled for a Finance Committee hearing next month, though, and if approved then would advance to the City Council for a vote.

David Harper, inspector general of the city of Albuquerque, suggested in an interview Monday that an independent municipal inspector general’s office ought to fold in with internal auditing.

Albuquerque’s inspector general and internal audit offices are separate but situated near to one another and work closely together, Harper said.

Meanwhile, the Association of Local Government Auditors recently wrote to Mayor Javier Gonzales and councilors to warn against the proposal to dissolve the internal audit department, suggesting an in-house audit function is preferable to outsourcing.

The city’s internal auditor, Liza Kerr, is on medical leave after suffering an injury while hiking.

She suggested in an email Monday the city could create an “assurance unit” that housed both an inspector general and internal auditor.