Q&A: Vancouver’s new auditor general on his role as ‘independent set of eyes’
Mike Macdonell begins his job on September seventh
The identify Mike Macdonell will little question sound acquainted to Vancouver taxpayers within the years to come back when the 58-year-old skilled accountant takes over as town’s first impartial accountant.
Town introduced his appointment on Monday.
In a phone interview Tuesday from Victoria, the place he presently resides, Macdonell gave a glimpse of what the general public can count on from the longtime bureaucrat whose job it’s to analyze town’s spending and decide if it has any worth to town bid {dollars} spent.
When requested what his appointment means to taxpayers’ pockets, he took a second earlier than saying the general public ought to consolation themselves that Mayor Kennedy Stewart and the ten councilors take the usage of public funds very severely.
“They usually’re doing their greatest by appointing an Auditor Normal for instance – and ensuring town will get one of the best financial system, effectivity and effectiveness with the {dollars} spent,” he mentioned.
Macdonell, Chartered Accountant and Licensed Fraud Auditor, served within the Provincial Workplace of the Auditor Normal for 23 years. He additionally labored on a contract for the Workplace of the Auditor Normal for Native Authorities, which was finalized in March.
Most lately he labored as a marketing consultant.
Macdonell formally begins his place with town on September seventh and has signed on for seven years.
He does not have an workplace or employees but, and town has but to set the workplace’s finances, though earlier worker reviews prompt it could possibly be anyplace from $ 1.5 million to $ 2 million a yr.
Macdonell’s wage, on the order of $ 200,000 a yr, is predicted to be launched as soon as he is on the job.
Within the meantime, Macdonell spent half-hour on the cellphone with Glacier Media answering questions on his new function – whereas sweating profusely. It wasn’t due to the query, he assured me, however as a result of he had simply returned from a coaching run for a half marathon.
The interview has been edited and shortened for causes of readability.
Why did you need the job in Vancouver?
I’ve been an auditor for many of my skilled profession. So I do know very nicely how this function works and may work. In all honesty, that made this place a horny one. I have been half retired for over two years now. On an event like this, I assumed it might be attention-grabbing to come back again – that this can be a once-in-a-lifetime profession alternative to arrange a legislative audit workplace and ensure it is arrange correctly and dealing nicely. I’ve labored in native authorities for seven or eight years, auditing native governments throughout the province. I undoubtedly consider within the worth of accountability and what an goal have a look at totally different points of native governance and administration can carry. So I actually see a terrific alternative right here so as to add worth for Vancouver’s voters.
You come into a task wherein there isn’t any template or predecessor from which to attract any historic context or institutional information. So the place do you begin to get the workplace up and operating?
Though Vancouver won’t have an Auditor Normal but, we did have the Auditor Normal for Native Authorities. It was a really nicely run workplace and exterior opinions have confirmed it time and time once more. That they had a extremely good construction and issues that I really helped to construct and that I wish to put collectively and promote in Vancouver. That ought to velocity up the method rather a lot. You’ll perceive that beginning one thing from scratch could be fairly a tedious endeavor. I haven’t got the posh of time. It must be carried out shortly. Actually, I’ve to submit an audit plan to town council in January 2021. As an alternative of reinventing the wheel, I work on the successes of others. An previous saying goes that imitation is essentially the most honest type of flattery. That’s what I’m going to do.
Within the council dialogue on the necessity for an audit workplace, politicians emphasised the significance of an establishment of this sort that’s impartial of town. How do you plan to construct this independence?
Effectively, it is actually not me who set it up or set up it. That’s what the Council has carried out – and it has put in place a governance construction wherein I report back to a subcommittee of the Council that can have exterior consultants. I’ll arrange my very own audit program. I’m not bringing it to you for approval, however for data. I’ll definitely be on the lookout for their enter – I will likely be on the lookout for enter from lots of people. However on the finish of the day, I’ve to place collectively an audit program that I consider will carry quick and long-term success for Vancouver voters. However at no time did [council] said, and I’d not settle for any interference within the composition of this plan. I’ve discretion when recruiting employees. And actually, that is going to be the most important problem – shortly discovering folks with the fitting backgrounds and expertise to leap into the roles we’re about to create. And to be sincere, I have not began working but, however I’ve already began recruiting.
How large will your employees be?
I haven’t got a precise reply as I haven’t got a precise finances but. That should be mentioned with the council. I count on about eight to 10 workers. However I have no idea for certain. It’s a matter of finances and compensation that’s each affordable within the metropolis context and engaging for recruiting.
I simply wish to make it clear how you’ll conduct an investigation. Will you determine which areas, packages or departments to analyze? Or do you are taking your orders from town council?
Positively not. I determine. Me and me alone. Each audit results in a public report. I’ll report what I discover. And the final auditor’s recruiting committee [of councillors] made it very clear that that is what they count on – that they wish to hear what I’ve to say because the impartial auditor and that there will likely be no interference in anyway.
However what in regards to the public? As a result of Vancouver, as you in all probability know, is a hotbed of native politics and points. Many various teams collect within the city corridor on varied matters. So are they going to have a say in what your workplace appears at in any approach?
I am very concerned about what public curiosity teams need to say about their priorities. And in all honesty, I’d be fairly silly to not hearken to that enter or to search for it in any case. In the end, the choice in regards to the acceptable audit program is as much as me. However completely – sure, I intend to be broadly concerned and search enter. I nonetheless have rather a lot to study in regards to the metropolis of Vancouver and I’m trying ahead to it.
I wrote a narrative final month that indicated that the Metropolis of Vancouver’s spending was rising sooner than its income, and that this was a pattern town’s finance staff anticipated over the subsequent 5 years if no cost-cutting measures have been taken would. Is that an space you wish to examine?
Not within the macro-economic sense, until the finances course of itself has been scrutinized. This sort of work focuses on ensuring that one of the best worth is getting for each public greenback spent. What we discovered – and I feel you noticed this in your background work – is that different native authorities basic auditors have really discovered nice alternatives for price financial savings or inefficiencies that workers and administration have no idea about. And that simply frees up extra money to do good as an alternative of maybe not being spent as correctly as you prefer to.
Final yr, town misplaced $ 89 million in income final yr and is predicted to lose one other $ 90 million this yr. Staff have identified the pandemic to elucidate the lack of income. If you see and listen to these numbers, do you see a chance in your workplace to higher clarify to the general public why it has incurred such giant losses?
I’d see the chance so as to add worth whether or not or not these numbers have been there. The historic monetary efficiency of town shouldn’t be the driving drive for me. It is the chance to see these impartial eyes and see how the job is completed and the way issues could be carried out higher.
Over the previous yr, the Vancouver Police Division’s working finances has been a serious subject of dialogue in the neighborhood, metropolis council, and police division. As you in all probability know, the Police Bureau lately appealed a council determination to not improve its finances this yr. No judgment has but been made. The VPD is town’s largest tax-financed division. Do you think about taking a better have a look at the expenditure of the VPD?
That is one space I consider in [auditor general] Bylaws dictate that I will need to have a dialogue with the council earlier than shifting on and searching on the boards. I’ll know extra about it when I’m really within the function and had a chance for additional understanding and investigation. When you have a look at the statutes you will notice that I might have the council’s approval to go there.
Your workplace will study and analyze many departments and packages. So I am curious to see who does the identical in your workplace and the way usually that can occur?
The statutes state that my workplace will likely be topic to an exterior analysis which I consider focuses on compliance with metropolis pointers. I am unsure who ought to do that proper now. That is one thing that must be labored out. I also needs to acknowledge and say that it’s actually essential that auditors are accountable. We’re not above accountability. I’d be fairly a hypocrite if I mentioned the rest. The opposite factor is, I intend to set this up as a public apply workplace with the Chartered Skilled Accountants of British Columbia. In consequence, the Workplace is topic to periodic exterior audits, as is the Workplace of the Auditor Normal of British Columbia and the Workplace of the Auditor Normal for Native Authorities. Lastly, the native authorities basic auditors conduct peer opinions. So we’ll try this too. That is to make sure that the work complies with the requirements and whether or not there have been alternatives for us to do our work higher.
What challenges do you see in doing all your job throughout a pandemic?
I am presently in a house workplace right here in Victoria. And I had conferences with folks all around the nation from this workplace. So in some methods it is really a bit simpler to fulfill folks since you simply need to set a time when you do not have journey time or something like that. Then again, they do not have the identical social interplay. So I’m assuming that we are going to have some sort of hybrid mannequin. When you have a look at proof, if you happen to have a look at paperwork, or something like that, you need to be bodily current. I feel we’ll do a little bit of each sooner or later. A lot of the work is completed remotely, with paperwork uploaded to safe web sites and folks doing their work from anyplace, whether or not within the workplace or from house. So I do not essentially see this as an impediment. It is only a totally different approach of doing enterprise. And welcome to 2021.
mhowell@glaciermedia.ca
@Heullinge
[ad_2]