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Scottsdale Schools opens books, compensation and benefits practices to City Council audit by IGA amendment

photo of Scottsdale City Auditor Lai Cluff
One of the most respected offices of any municipality is the office of the city auditor and in Scottsdale, Lai Cluff (above) is serving as acting city auditor. (Photo: Arianna Grainey/DigitalFreePress)
City of Scottsdale to examine SUSD compensation, benefits practices through IGA
By Terrance Thornton | Digital Free Press

Scottsdale City Council is considering a second amendment to an existing intergovernmental agreement with the Scottsdale Unified School District Tuesday, Sept. 19, at City Hall, allowing municipal auditors to dissect, in this case, the school entity’s compensation and benefits practices.

“In March 2021, the City Council approved an intergovernmental agreement (Contract No. 2021-023-COS) authorizing the City Auditor to conduct a specific audit for SUSD,” said City Auditor Lai Cluff in her Sept. 19 report to City Council.

“This contract also contemplated that the agreement might be extended for future audits.”

Ms. Cluff explains to City Council that SUSD leaders have approved new auditing policies at the public education entity, which is an effort for Scottsdale Schools to be a more collaborative partner with City Hall, 3939 N. Drinkwater Blvd.

“Subsequently, the Scottsdale Unified School District has adopted its internal audit policy and established an Audit Committee to guide development of its audit function,” she explained. “After successful completion of two audits conducted under the intergovernmental agreement, SUSD is now asking that the City Council authorize the city auditor to provide additional audit services and agrees to reimburse the city for the requested services.”

(Photo: Arianna Grainey/DigitalFreePress)
City of Scottsdale to examine SUSD compensation, benefits practices through IGA

Earlier this month, the Scottsdale Unified School District Governing Board voted to affirm the pursuit of what appears to be the third auditing request between the public institutions for the evaluation of financial documents, and now internal practices.

“At its Sept. 12, 2023, meeting, the SUSD Governing Board will vote to approve this amendment to the intergovernmental agreement with the city of Scottsdale for the defined audit services and the specified reimbursement,” Ms. Cluff wrote in her report to City Council published, Friday, Sept. 9, at the city’s website. “The intergovernmental agreement and this proposed contract amendment are consistent with the City Council’s goal of partnering with other jurisdictions, particularly with the school districts.”

The agreement, which is found part of the Sept. 19 City Council consent agenda, is Resolution No. 12926 authorizing Contract No. 2021-023-COS-A2, and represents the second amendment to the original IGA approved in March 2021, records show.

Scottsdale city auditors are expected to evaluate:

This audit will review the School District’s compensation and benefit practices, evaluating how current compensation practices align with established district policies, including employee classifications, salary placement and administration, and benefits eligibility. Additionally, the audit will review the various agreements with employee groups, as well as employment agreements, evaluating the terms against benchmark comparisons. The audit scope is not expected to include evaluation of staffing levels or a compensation study. Any limitations to this audit scope will be presented by the city auditor to the contract administrator or designee and included in the audit report as appropriate by auditing standards.”

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