Revitalization of the Long Beach City Auditor’s Office

Presented to the Rotary Club of Long BeachAugust 9, 2006

Laura Doud, City Auditor, Long Beach

Overview

Who the City Auditor is

What the City Auditor Does

Our Approach – Transparency

“First 90 Days” – Revitalization Plan

History of the Auditor’s Office

• 10th elected City Auditor in Long Beach in 98 years

• First elected City Auditor was Ira Hatch in 1908

• The first woman City Auditor was Myrtelle Gunsel in 1919– Myrtelle was the fifth elected City Auditor

• Myrtelle served for 32 years during a time of tremendous change

During Myrtelle’s Term

• Longest serving City Auditor – 32 years– First elected in 1919

• First woman to run for office in Long Beach – before most women in the United States could vote

• Retired in 1951 after being elected 11 times

During Myrtelle’s Term

• Served at a time of tremendous change– Port of Long Beach was established– Oil was discovered on Signal Hill– $1 million per month building boom in Downtown

Long Beach– Served during the Great Depression and the 1933

earthquake– Naval base construction at beginning of World War II– California State College, Long Beach was founded

What Does the City Auditor Do?

History is instructive for the present

City Auditor’s office

• The City Auditor’s office has the lowest budget of any citywide department - $2.7 million

• There are 22 budgeted staff positions for the City Auditor’s office

City Auditor Doud’s Approach

Mission Statement

The mission of the City Auditor’s office is to:• Promote excellence in government• Protect the public’s interests and assets• Ensure that City resources are used efficiently

and appropriately• Provide stewardship and transparency in the use

of City funds in order to improve the quality of, and confidence in, City decision making

City Charter Mandates

The City Auditor shall:– Produce audited financial statements– Conduct operational reviews– Perform revenue compliance audits– Verify the cash in the City treasury– Oversee all payments to City vendors and

contractors– Conduct fraud investigations– Audit payroll for all City employees

• $188 million for approx. 6,000 employees

City Auditor Doud’s Approach

Transparency

• All audit information will be available to the public

• City Auditor website will be upgraded and will be made more user friendly

• Audits will be published on the website in a timely fashion

• City Auditor and key staff will attend neighborhood meetings and conduct community forums

• Communications will be a priority of this administration

First 90 Days

Beyond the mandates of the City Charter

• First priority: Audit the City Auditor’s office– Utilize outside consultant to ensure an objective

analysis free of political influence

– Seek recommendations to maximize efficiency and effectiveness of the office

– Inventory all audits of the past five years

– Issue report to Mayor, City Council, and City residents

First 90 Days

• Actively participate in City budget process

• Analyze structural deficit reduction

• Identify and prioritize revenue compliance audits

• Reinvigorate and promote use of “fraud hotline”

• Revise citywide reimbursement policy

• Invite voluntary audits of City departments

First 90 Days

Address Queen Mary Situation

• Monitor the progression of bankruptcy proceedings

• Audit and review all financial statements utilized in comprising the City’s claim

• Report bankruptcy findings to the public

• Actively participate in monitoring future rent payments and/or rent credits for new lessee

First 90 Days – Well Underway

Significant Accomplishments to Date

• New staff and office structure– Created communications position

• Collected $50,000 on transient occupancy tax (TOT) audit

• Developed and presented City Auditor’s department budget

• Working with senior staff, wrote mission statement of office, goals, and objectives

• Started audit of the City Auditor’s office and revitalization of the fraud hotline

91st Day and Beyond

“In” it for Long Beach

• Independence

• Information

• Initiative

• Innovation

• Integrity