HomeMy WebLinkAboutSubmittal-Teb Guba-Auditor General Salary and BenefitsAuditor General -Salary and Benefits Discussion
- Signed 4 year contract effective May 2012 which was up for renegotiation after 1 year due to below
market salary and benefits. Waited 21/2 years due to City financial problems.
- 10 years ago the internal audit department was changed to the independent auditor general function
reporting to the City Commission rather than management, and is responsible for providing
independent oversight for all City finances and operations. Similar changes were made in other cities
and in the Florida State University system to elevate the reporting levels of audit departments in order
to achieve greater independence and transparency. At that time, an executive level contract was
negotiated with the City's auditor general commensurate with the reporting level and within the range
of other City executive contracts.
- Currently, the AG salary is paid at a rate that is much lower than other contract employees with similar
responsibilities and reporting levels, and does not take into account my more than 17 years prior
experience as a chief audit executive with three other organizations, 35 years as a CPA, as well the
additional professional certifications of certified internal auditor and certified fraud examiner that are
specific to the financial and operational oversight functions of the AG Office. Also, other executive
contracts included retirement benefits of up to 20% of salary; well above the 8% City contribution that
the AG receives, as well as severance for non -renewal.
- As examples, City of Ft. Lauderdale internal audit reports to the Commission and salary is at an
executive level. In contrast, the City of Miami Beach internal audit department reports to an assistant
city manager and the salary is at the director level.
- Finally, it should be noted that since the hiring of the AG in May 2012, the department has had actual
cash recoveries of $2.7 million as a result of audits, with total department expenses of $2.4 million
during this same period. These recoveries include a settlement payment of $1.4 million to the City as a
result of a previously completed audit that was discussed on today's agenda (item RE 7).
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Auditor General -Salary and Benefits Discussion
As you can see from the attached article announcing my hiring effective May 7, 2012, the salary and
benefits under my approved contract were to be renegotiated in one year. Due to the financial
difficulties that the City experienced during 2013, I did not approach you for this discussion. However,
now that the City's financial condition has improved so that our reserves are approximately $100 Million
after having fallen to $13.4 million in prior years, I think the time is appropriate to renegotiate.
A few of my accomplishments during my 2.5 years with the City include:
- Recovered over $1.25 million with potential recoveries totaling $7.7 million as a result of various audits
in solid waste, leasing and other areas.
- Completed more than 35 high quality audits and investigations while developing a flexible risk based
approach for the yearly audit plan.
-Built the staff from six auditors up to its current level of 10 effective staff; there has been a high degree
of stability with no turnover at the professional level
- Implemented a successful investigations program that included training of staff in effective
investigative techniques and proper documentation requirements
For your information, below is a comparison of my salary and benefits with those of the prior Auditor
General (AG) as well as salaries for comparable positions:
Salary
Car & Phone
Deferred Comp.
Retirement
Total
Vacation/ Sick *
Prior AG Current AG
$183,000 $145,000
12,000 8,400
20,000 -0-
49,000 11,600
$264,000 $165,000
59 days 30 days
*The 29 additional vacation/sick days (59-30) is valued at $20,412
City Auditor- Ft. Lauderdale $184,870
Commission Auditor -Miami Dade-$176,616
County Auditor-Broward $206,675
County Auditor Miami -Dade $223,770
Inspector Gen. —Miami Dade $230,267
Asst. Inspector Gen. Miami Dade $183,069
Audit Director-FIU
former position
$167,313-this was my
SUE3MI e IN TO THE
PUELC RECORD O
1:i)x1 C/cH12OJ
E
City hires auditor at $145,000 salary
BY PATRICIA HOYOS
Miami has officially appointed
an independent auditor general
after the city conducted a search
that extended for over six
months.
Ted Guba is to assume the
role May 7 at $145,000 a year.
The previous auditor general was
paid close to $183,000 a year,
said Commissioner Frank
Carollo during last week's com-
mission meeting.
"I think [the contract] it's
something reasonable though
some or many would say that
what we negotiated it's actually
below market for the position,"
said Mr. Carollo, who was in
charge of negotiating the con-
tract with Mr. Guba.
Mr. Guba understands that he
will, be a public servant and un-
derstands the financial situation
of the city, Mr. Carollo added.
He will also receive a smaller
car allowance than the former
auditor, $500 a month instead
of $800, 20 days of vacation
and 10 sick days instead of the
previous 45 days of vacation
and 12 sick days, and he won't
have a severance package while
the previous auditor had sever-
ance for six months. His un-
changed insurance package is
comparable with that of other
city executives, Mr. Carollo said.
The salary and benefits under
the contract will be up for rene-
gotiation in a year.'
Mr. Guba requested to begin
his four-year appointment in May
as he — although not required by
the charter — is in the process of
moving within city limits.
The commission unanimously
chose him in March to serve as
the city's independent watch-
dog after the position became
vacant last summer. Commis-
sioners decided not to renew
predecessor Victor Igwe's con-
tract after he held the job for
more than a decade. He sued the
city in October in a
whistleblower suit for the fir-
ing. Since his departure, an
interim auditor, who also ap-
plied for the permanent post,
filled the vacancy.
With over 30 years of experi-
ence, Mr. Guba has worked in
both private and public sectors,
serving as Florida International
University's audit director from
1998 until 2007 and, most re-
cently, as a budget consultant
for the City of Doral, according
to his resume.
Mr. Guba came to be chosen
after a selection committee nar-
rowed the candidate field before
commissioners made their choice.
Commissioners had originally
hoped to choose an auditor in
early February after a 10-per-
son search committee narrowed
more than 30 applicants to five
candidates and three alternates.
After determining that the pro-
cessed was flawed because
many of the final candidates
lacked sufficient government
experience, commissioners
voted to start the search pro-
cess over again.
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