Escambia County Clerk Pam Childers’ much-publicized Office of Independent Internal Audit (OIIA) has lost John Greene, her Chief Audit Executive, and his right-hand CPA, Scott Baretta. Baretta reportedly is working for a local accounting firm, and Greene is job-hunting.
Background: The News Journal reported on the OIIA on July 14, 2024, explaining it would “go over government spending with a fine-tooth comb, including reviewing areas at high-risk for potential fraud and manning a new fraud hotline to report suspicious activity.” Greene was touted for his more than 30 years of experience. Childers promised he would provide independent, objective and non-partisan assessments. Two weeks ago, I reported that Childers’ OIIA had published no reports during its first year, while its counterparts around the state produce three to four annually.
I emailed the Clerk and asked why Greene and Baretta no longer worked for her and what her plans were for the OIIA. She did not reply. A voice message left on Greene’s phone was not returned.
Severely Flawed Analysis
A Childers supporter shared that the auditors’ departures may be due to my report about the OIIA analysis that led to her denying payment for the annual membership dues for the Northwest Florida Tourism Council. Escambia County has been a member since it was reestablished after the BP oil spill in 2010. After paying dues for 14 years, the Clerk’s office claimed it was a conflict of interest for Visit Pensacola CEO Darien Schaefer to chair it.
- In the same analysis, Childers refused to pay the county’s match of $10.5 million, a three-year grant from Triumph Gulf Coast awarded to Visit Florida in 2024. Childers claimed that Triumph’s primary purpose “is not to specifically promote tourism,” even though it’s written into the Florida statute that created Triumph Gulf Coast. She ignored the fact that the Triumph board unanimously approved the grant, and the grant is run by the state’s tourism agency.
A simple Google search would have exposed her errors.
- Though evidence has been provided that the OIIA analysis was severely flawed, Childers has yet to pay for the dues or match – $86,250.
How to Run Internal Audits Properly
- Internal audits are structured, systematic evaluations of an organization’s processes, controls, and compliance with policies or regulations.
Here is a checklist for conducting Internal Audits, according to auditboard.com:
1. Planning the Audit
- Define the Audit Scope and Objectives: Clarify what you are auditing (e.g., a process, department, or compliance area) and why. Identify relevant risks and concerns, and determine the audit’s goals.
- Review Relevant Documentation: Examine prior audit reports, policies, procedures, laws, and regulations that apply to the area being audited.
- Identify Stakeholders and Process Owners: Determine who should be involved or informed, and schedule a kick-off meeting to align expectations and logistics.
- Prepare an Audit Plan: Document the audit’s scope, objectives, timeline, resources, and checklist of items to review or test.
2. Fieldwork (Execution)
- Gather Evidence: Conduct interviews with key personnel, review documents, observe processes, and collect data.
- Test Controls: Select samples and test whether controls are operating as intended over a period of time.
- Document Findings: Record the work performed, evidence collected, and any exceptions or issues identified.
- Analyze Results: Compare actual practices to policies, standards, or regulations to identify gaps or nonconformities.
3. Reporting
- Draft the Audit Report: Summarize the audit’s objectives, scope, methodology, findings, and recommendations for improvement.
- Review with Management: Share draft findings with management to verify accuracy and context, and to discuss potential action plans.
- Issue the Final Report: Distribute the final report to relevant stakeholders, including leadership and, if applicable, the audit committee.
4. Follow-up
- Monitor Corrective Actions: Track the implementation of recommendations and action plans to ensure that issues are addressed.
- Effectiveness Review: Assess whether corrective actions have resolved the identified issues and improved processes.
Key Considerations
- Risk Assessment: Prioritize audit areas based on risk to focus resources on the most critical activities.
- Audit Team Skills: Internal auditors should possess analytical, communication, and ethical skills to conduct thorough and objective assessments.
- Continuous Improvement: The goal of an internal audit is not only compliance but also process improvement and value addition