“What do they have to hide?”
“Why wouldn’t they want one?”
“Seems odd that the four incumbent council members wouldn’t support looking at the books…”
In the past two weeks, the Columbus City Council has thrice voted 4-2 against seeking a forensic audit. Since then, lack of support for the audit has frequently been interpreted as proof of corruption.
For some, the reasons we should dig into city financials are obvious: repeat violations in the city’s annual audit, questionable spending on multiple projects, the inability of an independent accountant to reconcile certain accounts, and — perhaps most importantly — embezzlement by former CFO Milton Rawle.
For others — like me — more details are needed before making such an expensive decision.
When he announced charges against Rawle in 2020, State Auditor Shad White said the embezzled $288,000 is all that could be identified beyond a reasonable doubt.
That announcement is perhaps both the most compelling reason to perform a forensic audit and the most compelling reason to give pause. After all, if White thought he could prove more was missing, wouldn’t he have done so? He didn’t just give up halfway through.
Earlier this year, White told Columbus Rotarians that hiring a forensic auditor to look into city finances could be beneficial if city leaders thought the amount they could recover would justify the expense. White also added, “We have no evidence that the losses stretched into the millions.”
Would spending more than a quarter-million dollars on an audit uncover more than White did? That seems to be a central question for those who aren’t pro-audit, and it’s a valid question.
One proposed solution to the cost of the audit has been to accept donations from the public. On the surface, the idea seems benign: If the audit is too expensive, let those who think it’s important pay for it. The problem is it signals that as long as an idea has the backing of those with deep pockets, it’s a viable initiative. And make no mistake: It will take donors with deep pockets to raise a quarter-million dollars.
Private funding of an audit is essentially catering to special interests. It gives me the same feeling lobbying does: Both are legal but feel less than pure. If our elected officials eventually decide an audit is in the best interest of the city, the city should pay for it.
So should the city of Columbus conduct a forensic audit? I think probably so but not right now.
Why?
Neither the goals for the audit nor the scope of the audit have really been defined for the public, and there’s little reason to believe they were effectively laid out for the two audit firms who have expressed interest in the job.
This was made clear during the Oct. 5 city council meeting, during which the firms presented proposals on conducting forensic audits of city finances. One firm gave a quote that started at $23,000 and the other gave a quote that topped out at $275,000. Additionally, each proposal took a dramatically different approach to conducting the audit and cited different projects they wanted to target. That wide range of quotes clearly signaled something about the process was off.
If I asked two different contractors to give me a quote on building a house, and I got one bid for a $23,000 cabin and another for a large $275,000 home, it would probably be prudent for me to go back and better define what I wanted so I had two more similar bids to choose from. That should have been done by City Hall before the Oct. 5 council meeting.
So when people tell me, “We need that audit,” I respond, “Which one?” There is much more to this audit decision than a simple thumbs up or thumbs down.
Last week, during a press conference, Ward 4 councilman Pierre Beard asked Mayor Keith Gaskin, “Are you … trying to gather information to better the city … or are you seeking criminal activities?” The mayor’s answer was unclear, which is unfortunate because this is an important question for many. Some of us are focused on rooting out all criminal activity from the past and prosecuting wrongdoers; others of us are more focused on identifying weaknesses in city finances and moving forward in a healthier way.
In that same meeting, the mayor said his administration could share emails and financials that would support the need for an audit. Those have yet to be shared with either the public or the two council members I spoke to Friday afternoon. Such evidence — even if it’s presented in vague terms — would go a long way toward making a convincing argument for an audit. Let’s see the evidence, Mayor, or at least share it with councilmen in executive session.
The second reason we should at least wait on a forensic audit is more practical. We currently don’t have either a permanent COO or CFO for the city. One benefit of an audit would certainly be to ensure our city is operating with checks and balances and sound accounting principles. Wouldn’t there be some benefit to first hiring those responsible for city finances so they could directly benefit from an audit?
I said I had two reasons for not supporting an audit right now, but there’s actually a third. Wednesday’s council meeting was filled with sarcasm, pettiness and unprofessional behavior from the mayor and multiple councilmen. It was unproductive and an embarrassment to the city. A little time before re-addressing the audit is probably in order. When that time comes — and it will — hopefully it’s at a council retreat or work session where the issue can be discussed in detail and at length, not in fits and starts as it has been so far.
Peter Imes is editor and publisher of The Dispatch. You can email him at [email protected].
Peter Imes is publisher of The Dispatch. You can email him at [email protected].
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