Business community reacts to city audit

While most agree that the findings present several areas that could be improved, some question whether the audit – and the coverage of the audit by local media outlets – is too harsh.

The auditor’s recommendation to hire an internal auditor, though, is getting ringing endorsements.

Bob Hammerschmidt, regional president for Commerce Bank, said he was surprised that the city didn’t already have an internal auditor, a position allowed by city charter.

“While having an audit staff is pure overhead, the city is large enough now to merit one,” Hammerschmidt said. “A $250 million business in the private sector would have an audit staff.”

Hotel developer and certified public accountant Gordon Elliott echoed the need for an auditor; he pointed to the internal audit programs at City Utilities, where he previously served on the Board of Public Utilities, and Missouri State University, where he is currently a member of the Board of Governors.

“As a CPA and former auditor, (I think Springfield) needed an internal auditor and an operation that was more like businesses use,” Elliott said. “The best way to get that done was with the state audit, to bring that to the forefront, and I think the city is moving ahead now.”

Springfield City Council already has expressed its desire to hire an internal auditor on a contract basis until a replacement is found for City Manager Bob Cumley, who retires in June.

Jack Stack, president and CEO of SRC Holdings Corp., voiced concerns with media reports of the audit and the effect those could have, not only on the search for a new city manager but also on the current city staff.

“All this talk about the city being bad, it sends out serious vibrations that are much greater than the audit itself,” said Stack, one of 21 members on a search committee charged with finding Cumley’s successor. “There’s a significant piling on here that’s going to hurt the city for years. There’s nothing in the audit that is too big to be fixed here right now. But if we keep making this hole bigger and bigger, we may not get out of it.”

City manager search

Media coverage aside, the audit itself could create issues for finding qualified city manager candidates.

“The controversy surrounding the audit very much has the danger of making the search tougher,” said Jim Anderson, president of the Springfield Area Chamber of Commerce.

“Any city manager candidate worth his or her salt is used to audits. But the controversy surrounding the audit has the potential to be a negative.”

Brian Fogle, vice president of community development for Great Southern Bank and another search committee member, said the impact on the city manager job is unknown.

“There are two schools of thought,” he said. “One says that candidates will say, ‘I want to come into a situation where I know everything – it’s open, it’s transparent, we know the strengths, the weaknesses and what to fix.’ The other side is that I know when people look at communities, they go out and read stories and look at responses and reactions. I’m hopeful that won’t scare away good candidates, but I don’t know.”

Redevelopment concerns

One of the major issues pointed out by the audit was the potential liability caused by the city’s investment in major redevelopment projects such as Heer’s and College Station.

Anderson, however, said that point is unfair.

“It calls into question the appropriate role of the city,” he said. “In my mind, the city has an appropriate role in providing leadership in the community, and one of the ways they’re doing that is collaborating with the private sector.”

Great Southern’s Fogle questioned whether the downtown development issue was even appropriate for the audit.

“I thought that was more commentary on public policy decisions,” he said. “Certainly, you can question whether something was the right decision, but it was a public policy decision made after open hearings and processed through City Council.

“I think citizens can agree or disagree with those decisions, but I don’t know if that is in the scope of an audit.”

Final analysis

Overall, Fogle said he didn’t see a lot in the audit that caused great concern.

“If any business owner has someone come through and look through every file and every expense account, in any business you’ll find weaknesses,” he said. “What I think is the positive out of all of this is that the city has accepted it and taken responsibility, and they’re going to strengthen those areas.”

And despite his misgivings about the way the audit has been reported and the way the city has been portrayed as a result, Stack thinks audits in general are a good idea.

“I never met an audit I liked, but I think it’s a wise idea to have one, internal or external, because the world is changing so fast – and the rules are constantly being rewritten – that it’s almost impossible to stay on top of everything,” Stack said. “In this world where more and more laws are being passed, you don’t have a choice but to bring someone in who does nothing except stay current on the laws.”