Overview of the Audit Committee’s Responsibilities
The Asheville City Audit Committee conducts quarterly meetings to fulfill its obligations, which are manifold and critically important for the proper functioning of municipal governance. These responsibilities include:
- Internal Auditing: Collaboratively reviewing internal audit reports with city management and external auditors.
- Financial Statements: Analyzing the city’s financial statements to assess fiscal health and compliance.
- Council Reporting: Briefing the City Council on the committee’s activities, existing issues, and any pertinent recommendations.
- Communication Channel: Serving as an open conduit for dialogue between internal auditors, external auditors, and the City Council.
The city’s fiscal calendar runs from July 1 to June 30. Having recently wrapped up the 2022-23 fiscal year, we have just entered the 2023-24 fiscal year.
The Issue of Internal Auditing
Andrew Emory, the committee’s Secretary, highlighted an unsettling issue: “…by January, we’re going to be three and a half years of not having anyone functioning in an internal audit role.” Committee member Debbie Evenchik expressed a similar sentiment, amplifying the need for a solution. (This discussion begins at the 39:57 timestamp on the meeting recording.)
In response, City Manager Debra Campbell informed the committee that the search for a new internal auditor is underway. Furthermore, she mentioned that the city is exploring outsourcing this essential function. She conceded that the city must improve its transparency concerning its endeavors to fill this vital role.
Accountability Questions
Campbell assured the committee that the city has robust internal mechanisms to ensure accountability, downplaying the absence of an internal auditor as a minor issue. However, the Finance Director Tony McDowell offered a more concrete timeline. He committed to having the internal auditor position filled, either by a city employee or a contractor, by January 2024.
Fiscal Management Concerns
It’s worth noting that, according to city records, Campbell is the highest-paid city employee, earning a salary of $231,138. In light of this hefty salary, one cannot ignore the mounting issues plaguing Asheville, such as escalating police officer attrition rates, increased violent crime and vagrancy, and an uptick in the homeless population in both downtown and suburban areas. Additionally, residents are still reeling from the week-long water outages last Christmas. These glaring missteps beg the question: What else could be going awry under Campbell’s watch?
The City Council will meet in closed session on September 12 to discuss Campbell’s five-year contract, which expires December 2, 2023.
Asheville Audit Committee Meeting of August 24, 2023
Tony McDowell informed the committee that Scott Powell has resigned as chair. Nate Hathaway, a new committee member, volunteered to assume this role and received unanimous approval from those in attendance.
The committee addressed the fiscal year-end audit process, which is slated to continue through October and be submitted by November 1st. Becki Ogle, Assistant Finance Director, elaborated on key dates pertaining to this audit.
Additional Resources
- Annual Comprehensive Financial Reports can be accessed on the city’s website.
- For a copy of the year-end audit update reviewed at this Audit Committee Meeting, click here.
- Access a recording of the August 24 Audit Committee Meeting here.
Given the challenges facing the city, increased transparency and expediency in filling key positions are not just desirable—they’re essential. It’s incumbent upon city officials to heed the concerns raised during this committee meeting and act swiftly to address them.
