The verification that wasn’t
Beat 4 of 7
The fr“audit”
Voters were promised an annual public audit. The 3PI-specific work was an examination of management’s assertion that City records themselves distinguished from a full audit.
1 · Record fact
The City Audit Committee was told the 3PI engagement was “an attest engagement” and “not a full audit.” In 2014 the accountant told oversight the work focused on controls, processes, and compliance, “not the dollar amount.” In a sworn declaration, a City attorney said Grant Thornton knew about the $5.7 million FY2013 and $4.8 million FY2014 golf transfers but neither investigated nor referenced them in the attestations. The declaration also said the accountant had disposed of the supporting records it relied on for FY2012 through FY2014.
2 · City position
The City says PPPI activity is also included in the audit of its annual comprehensive financial report. The professional examination reports express an opinion on management’s assertion of compliance.
3 · GOOD|GOAT finding
GOOD|GOAT calls this the fr“audit”: professional work occurred, but the 3PI-specific engagement presented as satisfying the voter safeguard was not a full audit and did not investigate or disclose the two largest golf transfers.
4 · Primary evidence — named by what it proves
Calls the 3PI work an attest engagement, not a full auditCity Audit Committee Minutes · Jan. 21, 2016 · p. 2View record cardA-01States the work focused on controls and compliance, “not the dollar amount”3PI Oversight Minutes · Nov. 18, 2014 · p. 4View record cardA-03States under penalty of perjury that both transfers were known but not investigated or referencedTuskai Declaration · Mar. 30, 2015 · p. 2 ¶¶ 8–9View record cardA-06 O-02Shows the underlying $5.7 million and $4.8 million transfer entriesTuskai Exhibits · pp. 25, 27–28View record cardA-06 O-02States the supporting records used for FY2012–FY2014 had been disposed ofTuskai Declaration · pp. 1, 3View record cardA-07Records limits on sample-dollar coverage and broad project descriptions3PI Oversight Minutes · Jan. 19, 2024 · pp. 2–3View record cardA-04