Zinkin Recommends That Town Follow Its Internal Control Procedures

An "internal control" is an accounting term. It means that a "check and balance" has been put in place to safeguard the assets of a town. At last week's council meeting, Council Member Mike Zinkin presented his report to council on the result of his inquiry into police department overtime.   His report was based on his personal research, which included discussion with town staff and the town auditor.  Zinkin had concluded that the town was not following a key internal control: Council approval of all changes in the approved budget.

Zinkin's inquiry had identified a lapse in the use of this control.  Administrative decision are being made that change the budget.  However,  Oro Valley rules required that only the town council can approve such changes. This is an internal control that safeguards "cash".

Zinkin provided 3 examples of these administrative decisions:

• Overtime budget funds were moved from one department to another with no council approval.  
• Activities are taking place that are being funded for which there is no council approved budget. "We need to know how much every program in this community costs so that we can make rational decisions on how we want to spend our money."
• A new position was added without council approval though all positions must be approved by council.  "We have just picked up a new administrative position in one of our departments. This position was not in the Town Manager's recommended budget. Its not in the organization chart.  Yet, [Oro Valley ] personnel policy 6... says that all new positions have to be approved by the town council."

None of these budget changes were approved by council, as Zinkin asserts town rules required that they should have been.

"There are administrative decisions [transfer of overtime, funding previously not funded activities, adding a new postion] being made that I don't think [should be] subject to administrative decisions," noted Council Member Zinkin. 

Zinkin was careful to observe that he found nothing "illegal' with present practices. Nor, he noted, were his findings a rebuke of any individual or any department.  However, he did observer that the rules should be followed because these rules are integral to the internal accounting controls of the town.

Note that Zinkn could not discuss his findings in private with other all council members as this would have been a violation of the open meeting law.  Rather, he properly chose this forum to present his findings.

Certainly, the town council should discuss this matter at an upcoming council meeting to decide if it wishes to enforce its controls or change them.

You should view Zinkin's presentation.

Please, tell us what you think.
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Mayor Hiremath tried to prevent Council Member Zinkin from presenting his report.  Town Attorney Schwab stated that Zinkin was well within his rights as a member of council to make his presentation.  Watch the discussion between Hiremath and Schwab.

We were told by several independent sources that Mayor Hiremath got up from his seat and proceeded to throw Zinkin's powerpoint document in the trash after losing his appeal to silence Zinkin.  We were told that the Mayor then spent the time Zinkin presented using his cell phone.

 If this is the case, perhaps Mayor Hiremath's lead role in attempting to recall Council Member Zinkin is interfering with Hiremath's ability to do his job of leading the council.
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