The problem with rubber stamps is that sometimes people use them for the wrong reasons at the wrong time.
That’s what the city of Bell, California, found out when the state controller audited the city’s books recently. The city’s auditing contractor, Mayer Hoffman McCann, “… audits the books of dozens of government agencies …” according to a December 22, 2010, LA Times article headlined Audits of Bell were ‘rubber stamp,’ state controller says. The article quotes California State Controller John Chiang as saying, “”MHM appears to have been a rubber-stamp rather than a responsible auditor committed to providing the public with the transparency and accountability that could have prevented the mismanagement of the city’s finances by Bell officials.”
The headline on the December 21, 2010, article in the LA Times was even more blunt: Bell’s auditors should have spotted most of the alleged corruption, state controller finds.
Fortunately, what happened in Bell could never happen in Coeur d’Alene. Right?
So Bill – can you help us understand how Bell,California applies to Coeur d’ Alene, Idaho? Who are the auditors and how do they play into the web of local relationships? I know that Magnuson & McHugh audit the LCDC books – and I believe that our local prosecuter Barry McHugh is connected to that firm in a relative way? Additionally, doesn’t the same firm audit the city books? Are you saying that Magnuson and McHugh are rubber stampers, too?
Comment by Stebbijo — December 23, 2010 @ 10:17 am
Stebbijo,
Is there any good reason why what happened in Bell couldn’t happen in Coeur d’Alene?
Comment by Bill — December 23, 2010 @ 11:05 am
Yep, our state controller is as bad as the rest of them and another rubber stamper. How do you get an audit done by the state over city funds ect – like the one that occurred in Bell,Ca?
Comment by Stebbijo — December 23, 2010 @ 11:52 am
Chiang’s office only came in after the Bell scandal had been diligently and repeatedly reported by the LA Times. Then governor-elect Moonbeam seized on it as a campaign issue while he was still California AG. The CA controller only got involved when there was a sustained and publicized public outcry — something we will not likely see in Coeur d’Alene.
Comment by Bill — December 23, 2010 @ 12:04 pm
I know, it’s bad – folks are scared they will lose their jobs ect if they don’t “play along to get along.” Idaho is thick with that sort of control.
Sometimes, I am just floored with the stuff a person can find with a google search. I was looking for info on our state controller – Donna Jones. Did you know that she is a director for the Idaho Hall of Fame? Kootenai County hall of famers include Charlie Nipp and and his wife! He’s right up there with Larry Craig and Sacajawea! It’s a 5013c non profit organzation that asks that sponsoring members pony up a measley tax free donation of 5000 to 10000 dollars – for what?
Bill – what was that site where you could look up non profit financials? I’m curious.
Comment by Stebbijo — December 23, 2010 @ 12:54 pm
Note: Donna Jones was not serving on the Idaho Hall of Fame when Nipp was inducted.
Comment by Stebbijo — December 23, 2010 @ 1:06 pm
What ever happened to the request for a forensic audit of the school district books?
Comment by Susie Snedaker — December 23, 2010 @ 10:54 pm
Susie,
The school district decided Magnuson-McHugh was doing a good enough job and that a forensic audit by a qualified forensic auditor from outside the area wasn’t necessary. The school district also said it was going to contract with an independent management auditor to do a management audit on the district. I believe the school district has subsequently hired that person as a district employee.
Comment by Bill — December 24, 2010 @ 6:47 am
A management auditor as a subsequent district employee? Well there’s the equivalent of a couple of text books. Boy SD 271 must have excess money to spend.
Comment by Ancientemplar — December 24, 2010 @ 8:40 am
Of course SD 271 hired a management auditor as a district employee. It is the North Idaho way to insure loyalty. Just like Magnuson-McHugh, SIUYA Gridley, the city council, etc. Become a good ole boy (or girl). You’ll keep your job and we wont boycott your business or get you fired. All at taxpayers expense of course.
After all, it IS the way North Idaho has done it for forty years and that makes it OK.
Comment by concerned citizen — December 24, 2010 @ 9:11 am