County Commissioner Chip Baker said Wednesday that county government needs a more independent and transparent process overseeing county government auditing.
He said he was asked to look into the matter last December by Commission Chairman Jeff Eversole and came up with a proposal for a new five-member county audit committee.
Three of the members will be private citizens with auditing and financial expertise and two will be County Commission members.
The present Audit Committee, that is headed by Commissioner David Sharp, will go away.
Commissioner Baker said Amie Haun, who previously was on the City Auditing Committee, will help spearhead the new oversight.
Commissioner Sharpe strongly backed the idea. He said, "When you are improving accountability and transparency, how can that be wrong?"
County Mayor Weston Wamp said it did not appear the new oversight was meant to be "antagonistic" to the current auditing program, though he said there was some concern that County Auditor Chris McCollough and County Finance Director Lee Brouner were not contacted about the idea.
However, City Auditor Stan Sewell was asked for input.
Commissioner Joe Graham said, "There's a thing called redundancy. We already have a full auditing staff."
Commissioner Greg Beck said, "Why don't we fire our whole audit department and hire these people? Who audits this committee - God? It just doesn't make sense. It rises to the level of overdoing something."
He added, "We have an adequate auditing department. If we find they are not adequate, then we can come up with a new auditing department."
Commissioner Gene-o Shipley asked, "Do we suspect we have fraud in this county government?" Ms. Haun replied, "Not that I've heard."
Commissioner Shipley asked Ms. Haun if she was to be paid, and she said no.
She gave a detailed presentation, saying the committee could brainstorm and take tips from community members to help improve county auditing.
Chairman Eversole cited some issues, including the fact that almost $100,000 in legal fees were paid by a county credit card. Mr. Brouner said that was done because the county gets a two percent rebate using the credit card and would save $2,000 over other payment methods.
Chairman Eversole also said there had been some 3,000 transactions through Amazon using a county credit card. He said, "You can't tell me that's not an opportunity to do wrong."
Auditor McCollough said he would welcome the help of the new panel.
Commissioner Baker said the current audit staff members "do a great job. This is just an added layer of support."
He said the resolution that the commission is to vote on next Wednesday setting up the new committee has the approval of the state Comptroller's Office.
The resolution says the new committee would have these responsibilities: (1) to address practices, policies and procedures within County government addressing the following: (a) financial reporting; (b) risk management and internal controls; (c) information technology and security; (d) compliance with laws and regulations; (e) financial and other banking practices; (f) ethics policies; and (g) internal audit; (2) to establish a policy and procedure of confidential reporting of suspected illegal, improper, wasteful, or fraudulent activities by county officials and/or employees; and (3) to annually present not less than thirty (30) days prior to the County Commission’s consideration of the County’s upcoming fiscal year budget a written committee report detailing how it has discharged its duties and specify any committee recommendations to the full County Commission; and (4) to possess such other duties, responsibilities, and privileges as authorized by the laws of the State of Tennessee, including but not limited to Tennessee Code Annotated Section 9-3-405, and Resolution No. 313-22."
It also says the new audit committee "shall consist of five (5) appointed individuals. There shall be no more than two (2) appointees being members of the legislative body serving at any one (1) time; and the remaining three (3) appointees shall be residents of Hamilton County. The non-legislative body appointees shall be either certified public accountants, certified fraud examiners, certified internal auditors, or accountants familiar with government accounting principles or having an investment/banking background; and external to management within Hamilton County Government. In order to create staggered terms each initial non-legislative body appointee shall be appointed to serve either a three (3), two (2), or one (1) year term, with the opportunity to be reappointed for additional terms. The maximum number of years any non-legislative body appointee shall serve will be nine (9) years. The legislative body appointees shall serve a term commensurate with their respective elected term in office. Three (3) members of the audit committee being present shall constitute a quorum."
Commissioner Warren Mackey praised the auditing committee idea, but, concerning oversight and transparency, he said he is still "ticked off" that with the new administration he was told he could no longer talk directly with Mr. Brouner.
He said, "Instead, I was told I had to deal with a vice-mayor "who doesn't know his head from a hole in the ground."