logo-newlogo-newlogo-newlogo-new
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books
✕
  • Home
  • Chambers on Internal Audit
  • Uncategorized
  • Is Houston Another Place Where Oversight Goes to Die?

Is Houston Another Place Where Oversight Goes to Die?

7 Characteristics of the Virtuous Internal Auditor
August 29, 2016
The Extraordinary Risk of Business Continuity Interruption
September 12, 2016
September 6, 2016

In a disappointing, but not surprising move, the Houston Independent School District failed to renew the contract of its chief auditor last week. Richard Patton, whose two-year tenure at the school district was marked by success in turning around a struggling internal audit function, fell victim to an all-too-common danger for conscientious practitioners.

Simply put, Patton was let go for doing his job.

Patton was suspended by the district in March for unspecified allegations of misconduct and was allowed to return to work in a diminished capacity in August. Despite requests by Patton’s attorney, the district has refused to make public the investigation, which cost the district a reported $17,000, so the reasons for his suspension remain unclear.

What is clear is that Patton found problems with the district’s oversight of its massive US$1.9 billion construction bond program. An audit of the program pointed to poor oversight and lack of controls as the cause for US$211 million in cost overruns, not inflation as the district’s manager’s claimed. An outside audit has verified the oversight problems identified by Patton and his team but also found inflation contributed to the overruns.

What is more troubling are additional details that came out as part of a lawsuit Patton filed within days of his return to work. Patton and his attorneys have said he was suspended after notifying the Federal Bureau of Investigation, the Houston Independent School District (HISD) police chief, and the Harris County District Attorney’s Office about possible illegalities in the district’s construction contracts, according to published reports. 

If Patton’s concerns about illegalities in construction contracts are accurate, the folly of the district’s actions raise a troubling concern that someone is trying to cover up illegal acts.

The reprehensible treatment of an accomplished internal auditor doing his job should be troubling to any practitioner. It should be equally appalling to the taxpayers of Harris County, where Houston is the county seat.

The watchdog role of internal audit in government is well-established, and history is replete with examples of its work serving the public interest. Internal auditors often shine the light on fraud, waste, and abuse in government. It has been said that light is the best disinfectant. But from a distance, it appears the Houston school district is allergic to disinfectants.

The district’s board of trustees have exhibited highly disturbing behavior on multiple levels. Aside from the prima facie case of retaliation against Patton, they likely wasted US$17,000 on a suspicious investigation, then they doubled down on that debacle by refusing to say what the investigation found. It is time to make its findings public. If there is no basis in the investigation for the actions that have been taken against Patton, then those who ordered the taxpayer-funded witch hunt should be held accountable.

I fear that the board of trustees will continue on their misguided journey when it comes time to hire a new chief auditor. Over my four decades in internal auditing, I have seen how this scenario plays out. The board will seek to hire someone who will fill the role in name only, not in function. They showed they have little interest in learning the objective truth about the district’s operations when they “shot the last messenger.” Does the school district want to be saddled with the reputation of being the place where oversight goes to die?

Even if by some quirk of circumstance or conscience the board sees the errors of its ways and genuinely seeks to find a suitable replacement, the school district’s reputation will precede it, making it harder to find a qualified and independent professional to take on the role of HISD chief auditor.

I must also speak up for Patton, whose reputation has been sullied by the worst kind of political retribution. By all accounts Patton is a highly qualified and respected internal audit professional. I do not question for a moment his exercising his right to seek legal recourse in this case. As I’ve previously written, some government CAEs who have taken their complaints to the courts have told me that it was crucial that they do so in order to clear their name and professional reputation after public officials had besmirched them.

The first step in clearing Patton’s name should be for the school district to make public its investigation and allow Harris County taxpayers to decide for themselves who truly was acting in their best interest. I’m certain when all is said and done, Richard Patton will be able to hold his head high. As always, I welcome your comments.

Share

Related posts

March 13, 2023

New IIA Report Is a Timely Benchmarking Resource for Internal Auditors


Read more
May 16, 2022

THE STAGGERING TOLL OF COVID RELIEF FRAUD: WHERE WERE THE THREE LINES?


Read more
February 3, 2022

To Live a Life in Color, You May Have to Change Channels


Read more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What’s Trending

03-20-23

New Report Reveals Surprising Insights from Internal Audit Executives


03-13-23

New IIA Report Is a Timely Benchmarking Resource for Internal Auditors


03-02-23

6 Things Audit Committee Members Often Won’t Say to Internal Audit


Read More

Archive

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009

Contact Us

PO Box 1441
New Smyrna Beach, FL 32170

+1-407-463-9389
rchambers@richardchambers.com

About AuditBeacon.com

AuditBeacon.com is a resource center for internal auditors and risk professionals from around the world. In addition to more than 500 blogs authored by Richard Chambers, the site includes links to news and insights on internal audit and other information that illuminates the value of this important profession. AuditBeacon.com is provided as a service by Richard F. Chambers and Associates, LLC.

Copyright © 2023 Richard F. Chambers & Associates. All Rights Reserved.
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books