When is An Audit Not An Audit?

When a misleading City of Fullerton agenda proclaims: “Introduction of Special Fiscal Audit – Grant Thornton Risk Advisory Services.”

I assumed, wrongly, that somebody had already been hired to look into the misdirection of funds into the General Fund Reserves that should have gone some place else, a fact that has caused considerable embarrassment to our severely and habitually underinformed City Council. I also figured this firm was going to talk about what they found.

But no.

In fact, the firm of Grant Thornton Risk Advisory Services were brought before the council by the City Manager, Eddie Manfro, simply to make a sales pitch for their services. And what services.

Step one is to be some sort of forensic accounting exercise, a fishing expedition to explore the world of Fullerton’s accounting regime to see what, if anything, is amiss. Nobody said anything, but there must have surely been some internal squirming when the company rep kept using the word “fraud.” And that included our Finance Director and recently anointed City Treasure, Steven Avalos who was sitting in the pit.

The second phase of GTRAS’s endeavor was to explore how the City might improve efficiencies, save money, and help address Fullerton’s grim fiscal situation. Why this all-purpose company was suggested for this task seems odd, the two tasks having nothing to do with one another.

I’ll address the first project first. Why is it necessary at all to delve into Fullerton’s accounting with an audit? We have been told that there were seemingly honest bookkeeping errors – embarrassing, sure and it did alter the already dire projection of General Fund reserve draw downs, but fear not, all was well. The councilmembers kept talking about transparency and public trust, but what does that really mean? Is this serious or just a political pantomime?

Consider the following facts. GTRAS was picked by the City Manager under his own authority and just brought to the council to give them a chance to ratify the decision. That’s a sole source contract, and the public has no idea how much they will be paid, and won’t without a PRA request. Will added scope to the $100,000 contract be reviewed by anybody except the City Manager and Steven Avalos? If some sort malfeasance were actually discovered – purely by accident, of course – would offender(s) names be published? Is any of this going to discussed in Closed Session because it touches on employee issues? Who knows? The Council approved the deal, without knowing whatever it is or might be.

As for the second part of GTRAS offer, the City Manager announced that would be returned to the Council for approval of a $130,000 deal. At least someone might get the chance to ask some pertinent questions, such as why is this “economic development” effort needed, given that Fullerton has highly paid staff who enjoy employment as economic developers. What have these people been doing and why do they need outside help. These people have been on the payroll for years. What have they accomplished?

Sunaya Thomas, in charge of economic development, was in attendance. Her presence at the meeting was an almost begging of the question about her own success in this endeavor, the effort of bureaucrats that never even pays for itself.

I wonder if GTRAS will actually suggest something that might help, outside of taxes. Personally, I doubt if their suggestions would even pay for their own service. That we will probably never know because no one will talk about it. This will be an agreement with no metrics for success or failure, just more electronic billboards and hotel occupancy taxes. Staff reductions? Getting rid of all our brand new “firefighters” and ambulance drivers? Don’t be ridiculous.

Anyhow our brave Council voted unanimously to proceed down this dark corridor, protesting their sincere desire to pursue those most elusive prey: transparency and public trust. No one said much about accountability. They never do.