Dear Mayor Franklin:
Thank you for the opportunity to assist the City’s efforts to reorganize its Department of Finance, as you requested in your letter dated April 15, 2003. We applaud your plans to use the Finance Department as a cornerstone in your continuing mission to create a "best in class" managed city.
During the past three weeks, we have reviewed the City’s plans and proposals with Rick Anderson, the Chief Financial Officer, and his team. We support these plans and proposals because they represent a significant first step in:
- Enhancing the integrity and
effectiveness of the City’s budget
process,
- Improving financial controls, both within the
Finance Department and City-wide,
- Promoting accurate and reliable financial information, and
- Providing more effective stewardship over
public money and City assets and records.
As part of this process, we believe there are several guiding principles that are critical to achieve your vision for the Finance Department.
1. To operate effectively, the City must have confidence in its budgeting process, financial systems, and reporting practices. Such systems should be reliable and based upon generally accepted, formalized policies and procedures.
The Mayor and City Council hold the Chief Financial Officer and the Finance Department accountable for all financial matters. However, the de-centralized financial policies and practices within the City do not promote accountability of the Finance Department or enhance the integrity of its financial processes. The City should consolidate the relationships of all financial employees and financial decision-making that exist throughout the City to strengthen the integrity of its budget and financial reporting practices. This will strengthen the financial controls that impact today’s spending, the accountability for that spending, and the relationship of spending to the City’s future debt.
2. Employees in the Finance Department should have generally accepted qualifications, both educational and professional, to perform their responsibilities in accordance with your vision. Employees should be fairly compensated.
3. Because Finance functions impact all departments and offices, a successful reorganization of the Finance Department will require the active support of all City departments and functions and both the executive and legislative branches of the City.
4. The City should move quickly to recruit and hire the financial talent needed to manage a successful reorganization and make the changes that will be required.
We also offer to continue providing ongoing advice and support to Mr. Anderson and the City of Atlanta throughout the implementation of this Finance reorganization. We believe in what is planned, and we offer our full support to assist in any way that you desire.
Sincerely,
(Signatures)
Harald Hansen, retired CEO of First Union National Bank of Georgia
Peggy McCormick, founder of McCormick LLC, and
retired partner with Deloitte & Touche
Aaron Turpeau, President of the Aaron Group, and
former Commissioner for the City of Atlanta and Chief of Staff
Wayne Woody, Chairman of the City’s Audit Committee, and
retired partner with KPMG
cc: Mr. Rick Anderson, Chief Financial Officer