§ 2-3-5. POWERS AND DUTIES.

(A)

In this section:

(1)

ABUSE means the use of a City office, employment, contract, or other position with the City to obtain personal gain or favor from a citizen or other City employee or vendor.

(2)

FRAUD includes, but is not limited to:

(a)

the unauthorized use of a City resource for personal gain by deception, including by forgery or by altering a document;

(b)

the misappropriation of funds, supplies, or other City resources, through methods including, but not limited to theft. embezzlement, or misrepresentation;

(c)

the intentional improper handling of or reporting of money or a financial transaction;

(d)

the intentional improper destruction or removal of records or other City resources; or

(e)

the use of official City information for personal benefit.

(3)

WASTE means:

(a)

the grossly inefficient or uneconomical use of a City asset or resource; or

(b)

the unnecessary incurring of costs to the City as a result of a grossly inefficient practice, system, or control.

(4)

PERSONAL BENEFIT means anything reasonably regarded as economic gain or advantage, including benefit to another person in whose welfare the beneficiary is interested.

(B)

The city auditor shall examine City operations to identify an opportunity to reduce costs, increase efficiency, quality, and effectiveness, or otherwise improve management of a City function, program, service, or policy.

(C)

The city auditor shall communicate directly with the council audit committee and the council, attend council audit and finance committee meetings, and regularly meet with council.

(D)

The city auditor shall establish audit policies and procedures consistent with government auditing standards established by the Comptroller General of the United States, and applicable law and regulation.

(E)

The city auditor may conduct a performance or financial-related audit, investigation, and other audit work to determine if:

(1)

a current City function, program, service, or policy:

(a)

is authorized by the council or other legal authority; and

(b)

is conducted to accomplish its intended objective;

(2)

a function, program, service, or policy is effective in achieving its stated or intended result or benefit, including the level of effectiveness;

(3)

an audited function, program, service, or policy effectively, economically, and efficiently acquires, protects, and uses its resources, including personnel, property, and space;

(4)

a function, program, service, or policy complies with a mandate regarding efficiency, economy, effectiveness, or expenditure of public funds adopted by council or other legal authority;

(5)

management for a function, program, service, or policy has adopted an administrative and accounting control system to effectively, economically, and efficiently carry on the function or program; and

(6)

a function, program, service, or policy is providing financial and performance reports that accurately, fully, and fairly disclose all information required by law or other criteria necessary to:

(a)

ascertain the nature and scope of the function, program, service, or policy; and

(b)

establish a proper basis for evaluating the results of the function, program, service, or policy.

(F)

When required or implied by audit objectives, the city auditor shall determine the cause of an inefficient, uneconomical, or ineffective function, program, service, or policy.

(G)

The city auditor may conduct follow-up review determined to be necessary by the city auditor to verify a report or plan from the city manager in response to an audit recommendation. The city auditor shall review a follow-up report or plan from the city manager in response to an audit recommendation.

(H)

If the city auditor determines that a city employee or official may have violated the law, or may be reasonably anticipated to commit a violation, the city auditor shall:

(1)

consult with and obtain advice from the city attorney;

(2)

promptly report the suspected violation to the appropriate authority; and

(3)

if the suspected violation is criminal, notify the appropriate chief prosecuting authority.

(I)

The city auditor may hire a certified or registered public accountant, qualified management consultant, or other professional expert necessary to perform the city auditor's duties, in compliance with the City's procurement requirements.

(J)

The city auditor shall manage a reporting system through which a City employee or a member of the public may submit an allegation of wrongdoing. The person making an allegation is not required to provide the person's name. An allegation may include an allegation of:

(1)

fraud, waste, or abuse;

(2)

a violation of personnel policy; or

(3)

a violation of law, including a violation of City Code Chapter 2-7 ( Ethics and Financial Disclosure ).

(K)

This subsection applies to an allegation of a violation of City Code Chapter 2-7, Article 4 ( Code of Ethics ) by a member of the city council, a member of a council member's direct staff, or the city manager.

(1)

The city auditor shall hire an external party to investigate the allegation if the city auditor finds that an allegation merits an investigation.

(2)

The city auditor shall submit the results of a substantiated external investigation to the Ethics Review Commission by filing a sworn complaint with the commission under City Code Section 2-7-41 ( Complaints ).

(a)

Not later than the fifth working day prior to filing the complaint with the Ethics Review Commission, the city auditor shall send a written notice to the person who is the subject of the investigation and to any person mentioned or referenced as being involved in the alleged inappropriate conduct informing the person that the city auditor intends to file a complaint with the commission.

(b)

The Ethics Review Commission shall make the final determination on the allegation.

(L)

(1)

If the city auditor investigates an allegation of a violation of City Code Chapter 2-7, Article 4 ( Code of Ethics ) by a member of the city council or their direct staff; a person appointed by the city council pursuant to the City Charter; or a person appointed by the city council to a City board, task force, or similar body, the city auditor shall submit the results of a substantiated investigation to the Ethics Review Commission by filing a sworn complaint with the commission under City Code Section 2-7-41 ( Complaints ).

(a)

Not later than the fifth working day prior to filing the complaint with the Ethics Review Commission, the city auditor shall send a written notice to the person who is the subject of the investigation and to any person mentioned or referenced as being involved in the alleged inappropriate conduct informing the person that the city auditor intends to file a complaint with the commission.

(b)

The Ethics Review Commission shall make the final determination on the allegation.

(2)

If the city auditor investigates an allegation of a violation of City Code Chapter 2-7, Article 4 ( Code of Ethics ) by a City official or employee, not listed in Subsection (1) above, and who is neither a member of the City's classified municipal civil service system nor of a state civil service system, the city auditor shall prepare a draft investigative report of a substantiated investigation. The draft report shall include any information tending to negate guilt or mitigate the seriousness of the offense.

(a)

The city auditor shall deliver the draft investigative report to the person who is the subject of the investigation and any person mentioned or referenced as being involved in the alleged inappropriate conduct. The person who is the subject of the investigation or a person mentioned or referenced as being involved in the alleged inappropriate conduct may submit to the city auditor a written response to the draft report by the 20th working day after the person receives the report.

(b)

The city auditor shall include any written responses received, and deliver the draft report to the city manager. The city manager shall provide written comment on the draft investigative report, including any action that has occurred in response to findings in the draft investigation report by the 10th working day after the city manager receives the report.

(c)

The city auditor shall include any written comment received from the city manager, and finalize the report.

(d)

The city auditor shall, pursuant to standard reporting procedures, deliver the report to city council.

(M)

The city auditor may conduct an investigation of an allegation of a violation of law or policy by a City employee who is a member of the classified municipal civil service system or of a state civil service system.

(1)

The city auditor must conduct an investigation of an employee covered by a civil service system in a manner that is consistent with the applicable law and with an applicable labor agreement.

(2)

The following provisions apply to an investigation under this subsection:

(a)

If the city auditor obtains sufficient evidence to indicate that a violation has occurred, the city auditor shall provide a copy of the results of an investigation under this section to the city manager or other appropriate authority.

(b)

The city manager or appropriate authority may conduct a separate investigation. The city manager or appropriate authority has the authority to determine that a violation has occurred and to take appropriate disciplinary actions.

(c)

For each investigation in which the city auditor obtains sufficient evidence that a violation has occurred, the city auditor shall prepare a draft investigative report and deliver the draft report to the person who is the subject of the investigation and a person mentioned or referenced as being involved in the alleged inappropriate conduct.

(d)

The person who is the subject of the investigation and a person mentioned or referenced as being involved in the alleged inappropriate conduct may submit a written response to the draft report by the 20th working day after the date the person receives the report.

(e)

The city auditor shall deliver a copy of the final report, including a response submitted, to the appropriate authority, the person who is the subject of the investigation, a person mentioned or referenced as being involved in the alleged inappropriate conduct, the council, and the city manager.

(f)

The city auditor shall retain a copy of the report in the city auditor's office for the applicable retention period under the City's records management program.

(N)

A person who is the subject of an investigation by the city auditor may bring a representative or advisor of the person's choice to an interview with the city auditor.

(O)

The city auditor shall refer an allegation enumerated in this subsection to the city manager. The city manager shall design a process to inform the city auditor of the disposition of the referred allegations for recordkeeping purposes. The allegations covered by this subsection are those related to:

(1)

a personnel issue;

(2)

an operational issue;

(3)

a de minimis fraud, waste, or abuse violation;

(4)

a public safety issue that is not related to fraud, waste, or abuse; and

(5)

an issue that the city auditor is not authorized to investigate and that is not within the jurisdiction of the Ethics Review Commission.

(P)

City employees and officials shall cooperate with city auditor investigations.

(Q)

The city manager shall produce a report on the status of investigations regarding fraud, waste, and abuse conducted by the city manager at least twice a year to the Council Audit and Finance Committee.

Source: 1992 Code Sections 2-8-1(B)(3), 2-8-3(B), and 2-8-6; Ord. 031204-9; Ord. 031211-11; Ord. No. 20170209-005 , Pt. 2, 2-20-17; Ord. No. 20190328-037 , Pt. 1, 4-8-19.