Broward Health fires auditor

He claims retaliation over criticism of audit

After 29 years of service, the outside CPA on Broward Health’s audit committee received a letter terminating his contract at the end of this month, in what he regards as an attempt by the troubled hospital system to squelch independent scrutiny of its operations.

Joel Mutnick, audit director for the South Florida firm Fiske & Co., had served on a committee of Broward Health board members and executives that supervised an accounting firm’s annual audit of Broward Health. He said he had refused to vote to approve the firm’s draft audit because it failed to disclose the suicide of the organization’s previous CEO, a state investigation of its contracts and other negative events from the taxpayer-supported system’s recent past.

“They didn’t like not having control of me,” said Mutnick, audit director for the South Florida firm Fiske & Co. “Clearly they didn’t like the idea of me turning down the financial statements because of their inadequate disclosure. I don’t think they liked an outside auditor telling them or questioning the financial statement results.”

Among the matters that he said should have been disclosed in the audit, which covered the year ending June 30, 2016, were:

■ The suicide of CEO Dr. Nabil El Sanadi

■ An investigation by the state chief inspector general

■ The suspension by the governor of two board members

■ The lawsuit filed against the board by

fired interim CEO Pauline Grant.

“None of this stuff has been disclosed,” he said. “And it could have had a material impact on the financial statements.”

Chris Ure, chairman of Broward Health’s audit committee, said Mutnick’s departure had nothing to do with any of his votes or his independence. He said it was simply that the committee was operating under new bylaws that imposed term limits on members, as a means of fostering independence and fresh perspectives. And outside members, under the new by-laws, will no longer be paid, as Mutnick had been, he said.

Broward Health, a fivehospital system run by a board appointed by Gov. Rick Scott, is being investigating by the Broward State Attorney’s Office over a possible violation of the state open meetings law for firing previous interim CEO Grant in a meeting for which that action had not been on the agenda and for which board members had been briefed privately by Broward Health’s general counsel, Lynn Barrett.

“Prosecutors with the State Attorney’s Office continue to take statements and issue subpoenas for records,” said Ron Ishoy, spokesman for the state attorney’s office. “It is an active investigation.”

Broward Health board members weren’t eager to talk about the organization, which has been accused by county commissioners, state legislators and former board members of operating in a secretive and, at times, baffling manner.

Board member Steven Wellins, senior vice president of Wells Fargo Advisors, declined comment and asked how a reporter got his cellphone number. When a reporter asked whether he could leave a phone number, said, “Not on this number,” and said to leave it at the offices of Broward Health. He did not call back.

Danielle Alvarez, vice president of Mercury Florida, an outside public relations representative for Broward Health, agreed to forward interview requests to all five board members, saying, “I’m here to help.” Two days later, she said none of them would talk.

“They’re unavailable,” said Alvarez, who previously served in Gov. Scott’s election campaign and in positions in his administration. “They have full-time jobs during the day. This is a parttime, volunteer position, so they just couldn’t accommodate it in their schedules.”

But Ure, chairman of Broward Health’s audit committee, reached by phone later, agreed to speak. He said the reason Mutnick was off the committee was not because he’s independent or raised objections to the audit. He said it’s simply that the bylaws were changed, rightly, to impose term limits and eliminate compensation for outside committee members.

“This was strictly having to do with term limits, which are designed to enhance independence,” he said. “He’s been there more than 25 years. I’m not challenging his independence. The idea is to have a rotation of independent people. I think it’s a best practice. I like to hear different opinions. I don’t care if people disagree with me or not. I just want it to be done civilly and professionally. Disagreement is healthy. It’s what makes good government.”

But the letter to Mutnick, signed by Broward Health interim CEO Kevin Fusco, does not say that Mutnick’s term is up. It says Broward Health is terminating his contract. “Broward Health has decided to exercise its rights pursuant to Paragraph 12 of the Agreement, and as such, this agreement will be terminated as of May 28, 2017.”

The audit criticized by Mutnick had been produced by Warren Averett, a firm based in Birmingham, Ala. Wayne Dunn, the auditor in charge of the Broward Health audit, declined comment.

Broward Health’s previous auditor, the international firm KPMG, was dismissed after refusing to submit to limitations on the scope of its work.

Legally known as the North Broward Hospital District, the organization operates five hospitals and various outpatient centers that serve the northern twothirds of the county. It is partially supported by property taxes.

Mutnick said he had planned to resign anyway, once this year’s financials were done.

“Quite frankly I did not want to associate myself with this commission any longer,” he said. “I believe, personally, that their interests are not that of the hospital district. And I believe there have been many, many wrongdoings over the past year by this commission to the employees that I can’t tolerate any longer, that have forced good people to either be terminated or to leave the district.”