Wednesday, April 1, 1998 | 9:46 a.m.
Internal audits conducted by former Las Vegas City Auditor Susan Toohey show that the majority of changes she suggested during her tenure were not accomplished, in part because they were deemed frivolous by city staff, according to documents obtained by the SUN.
Toohey was fired from her $73,606-a-year job March 13 without public explanation. Director of Human Resources Rick Anderson said city policy prohibits public discussion of personnel issues.
Toohey could not be reached for comment.
As an internal auditor, Toohey and the two employees in her department were responsible for examining the finances and production of city departments. Through audits, deficiencies in keeping records, handling cash and providing services can be found. The auditor should then point out these issues, along with methods for fixing them, to keep the city running efficiently.
Toohey issued seven audit reports as city auditor. Two were follow-up audits that examined whether the department in question had followed the recommendations of the first audit.
An October 1997 follow-up report on two departments within the Business Services Division -- Compliance and Enforcement and Sewer Services -- showed that 34 of 48 suggestions made in an audit conducted a year earlier had not been heeded.
Things the audit report recommended that were not implemented:
In the Ashworth audit, it was reported that same-day deposits were deemed unrealistic, that a log for the safe was being used and that the third-floor access from other city staff was not an issue. "During the period that we performed our audit we have never noticed unnecessary personnel in that office," the audit reported.
The external auditors also reported that the office position was eliminated, but a new position was created for additional receptionist duties.
There was agreement with the external auditor and Toohey's report that the checks weren't always endorsed and receipts weren't reconciled daily.
The issue of the unbondable employees wasn't addressed in the Ashworth report, because a blanket bond on city employees handling cash was obtained after Toohey's report was distributed.
Though other local city auditors and representatives from the Institute of Internal Auditors said that Toohey's suggestions aren't unlike ones they've made in their audits, some city employees she's dealt with insist that her recommendations were not appropriate.
"She didn't always know what she was talking about," said one worker who dealt with Toohey on an audit. "The recommendations didn't always address the problem."
They also contend that she did little, if anything, to help departments accomplish any of the suggestions.
"She was rigid and inflexible," said one employee, who asked not to be named. "For her, it was her way to do things, or no way."
"She was more concerned with making people look bad," said another employee. "She wasn't interested in helping make something better."
Deputy City Manager Steve Houchens, Toohey's former boss, said he hopes to have Toohey's position filled within 30 days. He said he is looking for someone who is flexible in working with departments.
"We obviously want someone who's technically proficient," he said. "They also need to be able to work with departments to understand issues and really have some ability to convince people that the suggestions are a great idea."
Sources at City Hall say Toohey pushed too far in a memo she distributed that described a potential reorganization of the auditor's office. Under her proposed structure, Toohey and her division would no longer report to the city manager, but to a board of citizens that would handle all hiring and firing decisions -- powers that the city manager's office has now.
According to her lawyer, former City Councilman Matthew Callister, Toohey is considering suing the city for firing her. She points out, Callister says, that during her three years as auditor, she was given the maximum 8 percent merit raise both times she was evaluated.
"Her performance is not in question," Callister said. "That's shown by her raises."
Some city department heads who worked with Toohey during audits said they were satisfied with the auditing process.
"I asked for a special audit of the sports division and it came out well," Dave Kuiper, director of the Parks and Leisure Activities Department, said. Toohey had just been hired and worked on the final stages of that particular report, and also conducted two other audits for his division. "It showed us some weak spots and showed us some of our strengths. It seemed to follow the prescribed standard practices for auditing."
Sharon Segberblom, director of the Neighborhood Services Division, asked Toohey to audit the operations of her federal grant division last year.
"I appreciated it and I think it was professional," she said. "I enjoyed working with the entire audit staff and think we've changed how we do things because of it."
Segerblom and Kuiper said they are hopeful the new city auditor will be organized and have a genuine interest in improving departments. Sources at City Hall say that Toohey, though proficient, put employees on the defensive, one possible reason for her firing.
"Audits are most effective when you can use them as a management tool," Houchens said. "The city auditor needs to have some real balance in his or her approach to an audit."
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