Breaking News: Burleigh County To Pursue Outside Audits
In a special meeting held today, the Burleigh County Commission authorized the beginning of a bid process for a forensic audit, while waiting on the State Auditor to issue his next report.
This morning, the Burleigh County Commission met to discuss some of the issues that have been coming up lately.
Here is the full video of today’s meeting, below is a breakdown of the issues discussed, as well as follow-ups on previous angles in this situation.
Discussion Of ARPA Money Deadlines
Over the weekend, there was chatter that Burleigh County had missed deadlines for federal ARPA funds (American Rescue Plan Act) and a debate over definitions of “obligated” vs “allocated”.
Upon hearing this chatter, I did a review of past commission meetings over the weekend and discovered that the discussion and declaration of the deadline to “obligate” funds. During that debate, which former Finance Director Justin Shulz stated the county must “obligate funds by December 31st, 2024”. Until recently, the county was “allocating” these dollars, in a why that was less than final or formal.
At the April 24th, 2023 meeting, when the term “obligated” was used, it was never defined specifically what that meant.
As the first video of today’s special meeting shows, the county believes it can create MOU’s (Memorandums of Understanding) with its departments to “obligate” the funds that need to be obligated yet.
Current Finance Director Leigh Jacobs explained the plan to use MOUs to remedy the issue, which really comes down to the fact the county has not spent these funds fast enough for the Federal Government’s wishes:
The Burleigh County States’ Attorney, Julie Lawyer feels this remedy’s that particular problem - just in the nick of time.
Does Burleigh County Need A Forensic Audit?
One big issue discussed was whether there is a need for a forensic audit to get to the bottom of the current issues, as well as the long-standing issues (that may or may not actually be issues).
States’ Attorney Julie Jawyer recommended that a forensic audit be conducted:
State Auditor Josh Gallion Makes An Appearance
As part of the discussion on what kind of audit needs to be done, State Auditor Josh Gallion made an appearance. He recommended that the county hold off on a forensic audit and let his office do their standard audit, knowing the county will want to know more about the history going back five years on these other issues.
This was the same message State Auditor Josh Gallion had last Wednesday when we were discussing these issues on-air:
It’s pretty obvious that a major part of this situation comes down to staff turnout and a lack of continuity.
Since 2019, there have been three elected Auditor/Treasurers’ (Kevin Glatt, Leo Vetter, and Mark Splonskowski - with an interim between Glatt and Vetter); and there have been four Finance Directors in that time as well.
Something is getting lost in the mix.
Auditor Splonskowski Was Asking For Help in October 2023
As part of the deep dive over the weekend, I discovered video from October 2023 when Burleigh County Auditor/Treasurer Mark Splonskowski was asking the Burleigh County Commission to be provided with more accounting staff to do the job.
Because so much of this discussion has been stacked against Auditor/Treasurer Mark Splonskowski, it is important to show what was leading up to the current situation as well.
The commission was discussing the need for more of a Comptroller role at the county level.
Interestingly, County Human Resources Director Pam Binder explained that the Finance Director was being used more like an Internal Auditor, keeping an eye on the elected County Auditor/Treasurer, rather than as a Finance Director that would guide the elected County Auditor/Treasurer to make sure he was on track.
As of October 2023, Auditor/Treasurer Mark Splonskowski was asking the full commission to give him another staff accountant that could act as his finance director. He stated he thought the existing finance director could be put under him to save budget dollars. The commission was not interested in moving the Finance Director out from under their own control.
In this October 2023 meeting:
Splonskowski explained the problem correctly; he offered a solution; he predicted problems if nothing was changed; and Pam Binder (HR) seemed to somewhat agree with Splonskowski on the need for more capacity, without rubber-stamping his plan directly.
Of course, this could be viewed as his way of saying "I need help to do my job so I understand it", and there's a bit of a "self-fulfilling prophecy" element to this whole exchange. But, to Splonskowski’s credit, he was raising the concerns 14 months ago that are now causing most of the conflicts at Burleigh County.
From the aspect of the Burleigh County Commission, they didn't take Splonskowski’s request for more staff seriously nor were they open to moving the existing Finance Director under the Auditor/Treasurer.
They admitted they have been using the Finance director as the internal auditor to keep and eye on the elected auditor.
This does raise the question of “Why”? Is this a normal role for a Finance Director? Or should this have been a separate position all along?
Clearly this usage of the Finance Director as an Internal Auditor pre-dates Mark Splonskowski taking office. How far back does that practice really go? What motivated it?
If the Finance Director is auditing the Auditor/Treasurer, who has been doing the work of Finance Director?
All of these questions should be asked. There is clearly a lack of trust among the elected officials in Burleigh County. Until that is resolved, the public will wonder what is really going on.
Once again, this reinforces the need to restructure the county’s approach:
Reform Is Definitely Needed
The county commission should explore the following steps:
Separate the Role of Treasurer from the Auditor’s Role:
Merge the Treasurer’s responsibilities with those of the Finance Director.
Convert this new position into an appointed role that reports directly to the commission.
Require the appointee to hold an advanced degree in finance or accounting.
Create a County Administrator Position:
Establish a long-debated county administrator position that reports directly to the commission.
Seek out candidates for the role who have experience that can translate, including that of budget director
Transfer day-to-day administrative responsibilities from the Auditor’s office to this position.
Ensure that the position does not become a “king-maker” by limiting contract durations and preventing “golden parachute” contracts.
Retain the Auditor’s Office as an Elected Oversight Role:
Maintain the legal obligations required by state law within the Auditor’s office.
Adjust the Auditor’s salary to reflect the reduced scope of responsibilities transferred to the Treasurer and Administrator positions.
Offer flexibility for an elected Auditor to opt for a reduced salary if they lack the qualifications to perform all the job’s functions independently.
Encourage candidates for the elected Auditor’s at a reduced-scope to have management training and experience; and mandate that new auditors seek formal training in the 6-months between being elected and taking office, including paying for such training. (Auditors are elected in November but do not take office until April, so there is plenty of time to get up to speed.)
By restructuring these roles, the county commission can create a system where elected auditors are not overburdened by unrealistic expectations. This approach ensures accountability while mitigating risks posed by officeholders who may lack the necessary technical proficiency.
Additionally, there should be an expectation that anyone holding the Auditor position prioritizes their official responsibilities over extracurricular political or legal activities. Anyone who seeks to be an election official should immediately set aside their desires to be a political operative. This is why you will never see me seek the office of County Auditor, it is simply not congruent with the work I do for a living.
Finance Directors and Comptrollers are positions best suited for those who have passed and maintained the Certified Public Accountant designation. Administrator positions, in this case, a County Administrator, needs the skills of someone who has become earned a master's degree in public administration or business administration.