Smart Voter
Santa Clara County, CA November 3, 1998 General
Measure P
Consolidate duties of the City Auditor
City of Mountain View

Charter Amendment

7,350 / 58.0% Yes votes ...... 5,315 / 42.0% No votes

See Also: Index of all Measures

Infomation shown below: Impartial Analysis | Arguments | Full Text
Shall Section 710 of the City Charter, relating to the duties of the City Auditor, be amended to set forth the duties of the City Auditor and eliminate those duties currently performed by the City Finance and Administrative Services Director?
Impartial Analysis from the City Attorney
The City Charter addresses the auditing of City accounts in Sections 710 and 1106. This measure amends Section 710 of the City Charter, relating to the duties of the City Auditor. The City Auditor is appointed by and reports directly to the City Council. Section 710 provides that the Auditor must be an experienced accountant, preferably one with municipal accounting experience, who shall perform all duties consistent with the Charter as may be required by the City Council.

Section 710 as amended will eliminate subsections (a) and (b), which describe duties historically performed by the City's Finance and Administrative Services Director, a City department head who reports directly to the City Manager and not to the City Council. The amendment also provides that the Council may combine the position of City Auditor with that of any other officer of the City.

Finally, the amendment to Section 710 specifically references Section 1106 of the Charter, which requires the City Council to employ an independent certified public accountant who shall, at such time or times as may be specified by the Council, and at least annually, examine the books, records, inventories and reports of the City and its officers. After completing the examination, Section 1106 requires the independent certified public accountant to submit a final audit and report to the City Council. The requirements of Section 1106 are not amended by this Charter amendment.


MICHAEL D. MARTELLO
City Attorney

  Official Information

City of Mountain View

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Arguments For Measure P Arguments Against Measure P
The City Auditor position, provided for in the City Charter, has always functioned well. Over the past few years, however, debate has occurred within the community as to the specific duties of the auditor and how those duties differ with those discharged by the City's Director of Finance. When the Mountain View City Council formed a committee to review the City Charter, this was one of the principal provisions we studied. I was the chairperson of the Committee and we conducted our meetings in public.

The Committee redrafted Section 710 to eliminate duties which historically have been performed by the City's Finance and Administrative Services Director, a City department head who reports directly to the City Manager and not to the City Council. The amendment also provides that the Council may combine the position of City Auditor with that of any other officer of the City.

By specifically referencing Section 1106 of the Charter, the amendment clarifies that the City Council shall still annually employ an independent certified public accountant to examine the books, records, inventories and reports of the City and its officers. After completing this independent examination, Section 1106 requires the independent accountant to submit a final audit report to the Council.

The amendments to Section 710 will not change the way the Council or City Manager has secured the fiscal integrity of the City in past years; however, for the first time, it will provide clarity as to specific duties required of the City Auditor, clarify that the auditor position can be combined with any other city officer and correlate those city auditing functions with the annual independent audit required by Section 1106.


PATRICIA FIGUEROA, Councilmember

Rebuttal to Arguments Above
The argument in favor of this measure is misleading. It is not true that the "City Auditor position...has always functioned well." The position has not been filled. Instead, the City Council has appointed the city's "Director of Finance and Administrative Services" to double as the City Auditor.

The Director of Finance and Administrative Service (currently Mr. Bob Locke) is hired by, and answers to, the City Manager (Mr. Kevin Duggan). City officials, including Mr. Locke, should be audited by someone who answers directly to the City Council. Mr. Locke cannot be expected to audit himself or the City Manager (his boss).

As currently written, the City Charter requires BOTH a City Council-appointed City Auditor (in Section 710) AND an annual audit by an outside firm (in Section 1106). Both provisions should remain. We just need City Councilmembers who will abide by the Charter and appoint a real internal auditor.

THIS MEASURE WOULD AMEND THE CITY CHARTER TO AUTHORIZE THE CITY COUNCIL TO NEVER APPOINT A REAL INTERNAL AUDITOR and to rely, instead, on an annual audit performed by an outside firm that is given limited information.

Mountain View city government has become a big business with some 540 employees and an annual combined budget in excess of $100 million.

By voting "no," voters can tell the City Council to abide by the City Charter and appoint a real internal auditor.


GARY WESLEY
Attorney at Law

Even though the City Charter calls for the City Council to appoint a City Auditor, it has not happened. Instead, the city bureaucracy has requested that one its own (currently the city's "Finance and Administrative Services Director") simply double as the City Auditor. Compliant City Councilmembers have just gone along.

No one has ever filed a lawsuit against the Mountain View City Council to challenge this practice of refusing to appoint a real City Auditor. But if voters approve this measure, there could never be a legal challenge and there may never be a real City Auditor in Mountain View.

This measure would amend Section 710 of the City Charter to authorize the City Council to combine the position of City Auditor "with any other officer of the city" or just hire an outside "audit firm to serve as city auditor from time to time."

The City of San Jose has an office of the internal auditor. So does the City of Palo Alto. The City of Mountain View has over 525 employees, but somehow has not managed to hire even one person to work as the City Auditor.

If we did have a City Auditor who answered directly to the City Council, other city employees might be wary of squandering money. The City Auditor would earn his or her keep by finding waste or worse in city government. Little wonder the city bureaucrats want no such position.

As I have said for years, the language in Section 710 concerning the City Auditor is outdated and should be improved. This measure, however, would not just drop some old, outdated language - it would forever authorize the City Council to refuse to hire a real City Auditor.

I respectfully recommend a "no" vote.


GARY WESLEY

Rebuttal to Arguments Above
The argument against Measure "P" completely misses the point of the proposed amendment to this important section of the City Charter. The existing City Auditor position has served the City well and is consistent with the practices of many cities within the State of California.

Separate and apart from these internal auditing functions, in accordance with Section 1106 of the Charter, the City Council annually appoints a certified public accountant as an external auditor to render an independent and public audit report. In addition, the Council retains the ability under the Charter to designate additional duties for auditors for any purpose.

The changes to Section 710, therefore, would not tie the Council's hands in any measure. Rather, they will eliminate the duties set forth in the Charter that are not typical "audit" functions and have historically been performed by the City's Director of Finance and Administrative Services.

The manner in which the auditing functions are completed in Mountain View is consistent with many cities in California. A survey presented to the City Council as far back as 1986 found that 13 of the 18 cities surveyed accomplished some of the audit needs through in-house resources, a situation parallel to that in Mountain View.

The changes also reflect that the appointed auditor position contemplated by Section 706 is separate and in addition to the independent audit by a certified public accountant required by Section 1106 of the Charter.

We urge your support of this amendment.

PATRICIA FIGUEROANANCY NOE
CouncilmemberCouncilmember

Text for Measure P
SEC. 710. Powers and duties of city auditor.

The city auditor shall be an experienced accountant, preferably with municipal accounting experience. The city auditor shall have power and be required to perform such duties consistent with this Charter as may be required by the city council. This position may be combined with any other officer of the city as designated by the city council. Council, in its discretion, may retain the professional accounting services of an independent audit firm to serve as city auditor from time to time. The City Council shall also annually employ an independent auditor as required by Section 1106 of this Charter.

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Created: February 16, 1999 18:55
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