Reading about Joplin’s latest “clean” audit brought back some memories.
I remember a contest in college where leading CPA firms were each given identical information regarding taxes and each ask to prepare a federal 1040 return in accordance with current law. During that year, there were dozens who participated and not one of them got the same answer (and that year, none got it exactly right either.) I often wondered how such smart people could NOT get the same answer. I’ve since learned that life isn’t so black and white.
The city of Joplin received a clean audit again this year from their audit firm Cochran Head Vick & Co. And for the 20th year in a row, the city received a certificate of achievement for excellence in financial reporting from the Government Finance Officers Association.
But wait? The auditors found problems including:
- Failure to monitor compliance for those receiving CDBG funds
- Charging internal engineering fees for recreation trails against grants – not allowable
- Repeated criticism (also mentioned in previous years) for not having a formal written policy and procedure for cost certifications
My point: even well run cities will have findings in an audit. No one will ever be perfect, but making a mistake isn’t always a crime. Seeking perfection is a work in process that never stops.
If given a choice, put me on the team that strives for perfection, not the team that sits in wait looking for the first mistake. Working to make things better is, at least for me, so much more satisfying.
And to my friends in Joplin, congratulations again for doing a great job in your city.
"...put me on the team that strives for perfection, not the team that sits in wait looking for the first mistake...."
ReplyDeleteIf we had people looking for the first mistake, we would likely have fewer mistakes to follow....this sounds like you're trying to cover the city's backside before the state audit is even started...let the chips fall and, excuse me, but let's find those mistakes.
"Correction of errors" is my preferred term. If you do it once, put something in place to reduce the chance the same mistake will happen again. It's surprisingly simple and quite effective.
ReplyDeleteNo reason to cover anyone's backside. We've got issues. Let's find 'em. But if you bring a problem to light, bring a proposed 'fix' or solution to that problem with you. It's much more productive.