One week after Toledo City Council voted 7-4 to fire city auditor Jake Jaksetic, the job has not been posted, and some councilmen are concerned about the temporary loss of independent oversight as the city enters a new round of budget talks.
The situation leaves a gap heading into budget season, Councilman Theresa Gadus said Monday. Budget hearings start in January, and having an auditor’s insights is helpful to make informed financial decisions, she said.
“I know that I relied on Jake, he was very good at pulling up things that we needed to look over [on] the budget, so I feel like we’re really missing one of the most important jobs to move the budget forward,” Ms. Gadus said.
Mr. Jaksetic was essentially the watchdog that councilmen counted on to provide independent information, she said, including in response to questions from residents and city staff.
“He was responsive, helpful, and timely,” said Ms. Gadus, who was among the four councilmen who opposed the auditor’s termination. “He had a vital role in the management of money in Toledo, and he was really the checks and balances of the people.”
The auditor is an at-will employee who serves at the discretion of city council. The exact reason or reasons for Mr. Jaksetic’s firing remain unclear. After council suspended him with pay in early November, Toledo Mayor Wade Kapszukiewicz cut off all one-on-one meetings with council members because he said he was unhappy that Mr. Jaksetic hadn’t been fired at that time. Since his removal, that communication has been restored, Ms. Gadus said.
Following council’s vote to fire Mr. Jaksetic, Council President Matt Cherry said in a written statement that the job listing would be posted “immediately.”
Mr. Cherry did not respond to messages Monday seeking an update on the process. Multiple other councilmen also did not respond to queries, or declined to comment, on the status of the auditor search, or whether any other changes would need to be made in the wake of the controversy.
Councilman George Sarantou, chairman of the city’s Finance Committee, said he is less concerned about the impending budget process absent an auditor. He also said that they are “working through the process” of getting the job posted.
“We have 12 members of council all of which have been there for some time, so we have a lot of experience on the panel in terms of looking at the budget,” he said. “I’m going to have hearings of every department and we are going to go through the department’s budget very thoroughly.”
In addition, budget amendments can be implemented as needed after the budget is passed, he said.
“We can always change the budget if we find something out that we are not agreeable to,” he said. “Once we have an auditor, that will be great, and they will be able to assist us in many different ways, but again, I think we’ll be fine.”
As defined by the human resources department, the city auditor is responsible for providing an independent and objective view of the city’s financial and operational functions, and ensuring compliance with those functions. Aspects to the job include performing financial and operational audits of all departments, divisions, boards, commissions, and other agencies of the city. Among the required skills set is the comprehensive knowledge of generally accepted accounting and auditing principles, practices, and procedures.
An auditor is also responsible for protecting the city’s assets and keeping those assets safe from theft and fraud, said Councilman Katie Moline, who maintains that the former auditor helped her keep track of projects and spending taking place in the city. She has asked to be involved in overseeing the hiring of the new auditor.
“As a CPA and former auditor, I would like to use my expertise and experience to make sure that there are expectations and guidelines when it comes to the city auditor, so we are never in this position again, and I hope that I would have the support of my colleagues and the president of council to see that go through,” she said.
Ms. Moline previously said she is concerned that city financial controls “may be going by the wayside” without an auditor. Going without a city auditor for an extended period is also likely to complicate the city’s annual external audit, she said, which could increase the time and cost of its completion. That external audit process begins in January, she said.
It remained unclear Monday whether the council intends to make legislative changes as a result of the controversy that has played out in recent weeks — potentially to better define the city auditor’s role, as well as how council reviews employee performance, carries out suspensions, and investigates allegations of wrongdoing. Several councilmembers have said in recent weeks such tweaks will need to be made.
"At the end of the day, there will have to be a review of the process, in terms of who gets to make suspensions, how we investigate [an employment] scenario, at what point do we provide people with feedback for their positions," Councilman Nick Komives previously said.
First Published December 5, 2022, 10:33 p.m.
