Search for Las Vegas city auditor drags on

Erin Neff

Monday, April 10, 2000 | 10:52 a.m.

It may lack the publicity given the recent search for a Clark County School District superintendent.

But the quest for a city auditor in Las Vegas has been lengthier, almost as controversial and difficult to accomplish.

Perhaps that's why the city's acting auditor made the cut of two finalists despite not having been considered among the top 10 who applied.

Later this month -- likely on the 18th -- the Audit Oversight Committee will decide whether to recommend acting auditor Philip Cheng or Shreveport, La., city auditor Radford Snelding for the job.

But Cheng's inclusion in the small pool of candidates has raised ethical concerns because he is a Canadian citizen working here under terms of the North American Free Trade Agreement. He must rely on a signed letter from city officials each year to maintain his right to work in the United States.

"He cannot be independent if he relies on the city for his very right to be in this country," said Susan Toohey, who served last as city auditor before being fired amid a whirlwind of political controversy in 1998.

City officials have never given a reason for Toohey's firing. Toohey said she was fired for trying to make the city's auditor function more accountable by operating in public light.

She has filed a $4.8 million wrongful termination suit, which goes to trial in July.

Ever since Toohey's March 1998 firing, questions about how Las Vegas should handle its internal audits have proven as taxing as the search for Toohey's replacement.

In the past, the internal auditor reported to the city manager. Since late 1998 the auditor has reported to the Audit Oversight Committee, which makes recommendations to the City Council.

For that reason, Snelding said, he thinks Cheng can maintain his independence even if city officials in a sense control his right to be in this country.

"Really in this instance, it doesn't seem to be a problem," Snelding said. "He's not reporting directly to the person who signs his letter."

Cheng's NAFTA letter has previously been signed by Deputy City Manager Steve Houchens. Houchens is a nonvoting member of the audit committee.

However, Cheng said this year the required letter will be sent through the mayor's office. Mayor Oscar Goodman is a voting member of the audit committee.

"It may appear to be a conflict, but it doesn't affect me," Cheng said. "They don't use that to control me. As a professional, it is my own professionalism that matters."

A position statement from the international Institute of Internal Auditors recommends internal auditors remain as independent from those they are auditing as possible.

"It is especially important that internal auditors remain independent, which includes operating independently of management and remaining free from organizational impairments," the position statement reads.

The audit committee is composed of three citizens and two elected officials. Nevada State Bank chief executive Bill Martin, auditor Connie Lentz and former City Councilman Scott Higginson are the citizens on the committee. Goodman and Councilman Michael McDonald are the other two voting members.

Cheng has worked for the city as a staff auditor since 1996. He has served as acting city auditor since Toohey's firing.

Cheng also worked six years as an auditor in Calgary, Alberta, and has seven other years experience in accounting and business management.

Snelding has 11 years auditing experience and 17 years management experience. He has served as internal auditor in Shreveport since 1991, managing a staff of seven.

Before that he worked as a supervisor and auditor for Wichita Public Schools in Wichita, Kan., and worked for Phillips Petroleum Co. as an accountant for eight years.

In Shreveport, Snelding reports to a seven-member City Council and a mayor who has veto power. He has testified against one of his councilman in a federal extortion case.

"When I left Wichita and told people I was going to Louisiana, my friends warned me not to turn over any rocks or I'd get killed," Snelding said, joking about the state's history of political corruption. "I've turned over some pretty big rocks, and I'm still able to do a good job."

Audit committee members have not discussed which candidate they prefer.

Goodman has said the committee has a choice between a known commodity who has held down the fort and a veteran auditor who is not afraid of politics.

If the committee makes a recommendation April 18, the full City Council could approve the hiring of the auditor April 19.

The city auditor salary will range from $66,000 to $110,000.

Erin Neff covers Las Vegas government for the Sun. She can be reached at (702) 259-4062 or 229-6436, or by e-mail at erin@lasvegassun.com.