Q&A with Palmer

1. Why are you running for this office, whether for re-election or election the first time? Is there a particular issue that motivates you, and if so, what? What will be your main priority?

I am running for re-election as auditor because of the difference I can make with my expertise in accounting and auditing. I was chief deputy for eight years, appointed as auditor in February 2006 and elected as auditor in November 2006. Previously, I had 20 years experience in accounting and auditing in banking. I want to continue to implement short and long-term financial enhancements for the county. My education includes a bachelor's degree in business administration with an emphasis in accounting and management. I am motivated to run as I have been involved in accounting and auditing for my entire career and want to use this experience and background in serving McHenry County's citizens. In addition, my qualities of having a hard work ethic; innovation in problem solving and planning; excellent communication and written skills; being a team player; and my ability to consider the overall picture; are all necessary for a leadership position. My main priority is to protect the taxpayer's dollars.

2. For incumbents and non-incumbents. If you are an incumbent, describe your main contributions. Tell us of important initiatives you've led. If you are not an incumbent, tell us what contributions you would make.

My main contributions have been to strengthen the county through excellent financial operations and internal auditing. I'm proud that my office received the ninth consecutive GFOA Certificate of Achievement for Excellence in Financial Reporting for the county. I compiled and implemented a formal written internal audit program in 2006 that is based upon the performance of a risk assessment of the county's departments. McHenry County is a leader in having this type of a program. I have started an auditor's newsletter internally to educate departments on such items as internal control. A fraud, waste, and abuse hotline for reporting alleged activities has been made available by me with information on the auditor's Web page. I have also established the auditor's office as a resource for departments to contact for financial or operational assistance, which has resulted in increased cooperation and teamwork.

3. The county board and auditor's office clashed in recent years over whether the board has the authority to order or request the office to conduct specific audits and whether the auditor has the authority to refuse those requests. Do you believe the office should conduct audits at the behest of the county board? Explain.

I am always open to suggestions for audits in the planning stage from other sources, including the county board and department directors, and i have obtained input from the finance and audit committee. The annual audit plan is designed to be created prior to the start of each new fiscal year through performing a risk assessment. The solicitation for additional audit requests for the annual plan is important as the auditor may be unaware of a situation occurring within a department. The formal internal audit program took a couple of years to develop with much forethought for proper planning and I have had other counties come to look at our program as they were developing theirs. As the annual audit plan is developed in advance, an audit request by the board during the course of the fiscal year would have to be considered based upon the availability of staff time and the priority of the audits listed.

4. Two years ago, the county board considered a measure that would have asked voters whether the county should retain the auditor's position or eliminate it and roll its responsibilities into the county finance department. Explain whether this is an idea worth pursuing - and what effect the loss of the position would have on the county government.

I have established a cooperative relationship with county administration, which is where the budgeting/finance/analysis functions occur. The auditor, by state statute, is the general accountant of the county and maintains a continuous internal audit process, among other financial functions. The present set-up represents a good segregation of duties between the administration functions and auditor functions. Being the elected auditor and also independent of the board and administration is of utmost importance so that audits conducted are performed without influence. Findings and recommendations on audit reports issued gives accountability to the board on operational matters and this could be jeopardized if not independent. I do not agree that eliminating the position should be considered, and I am sure that the citizens would vote the same, as has happened in other counties proposing elimination. My opinion is that placing the auditor's functions under a "Finance Department" would reduce transparency and could increase personnel costs.

5. Before the primary, questions surfaced over the appropriateness of petty cash spending within the state's attorney's office. Should the auditor's office have taken more control over how tax money was expended within the department? Or should each elected official have total control over the dollars within his or her budget? Specifically, define how you view the auditor's oversight responsibility.

The auditor's office is a watchdog for the county board over expenditures submitted. Elected officials' budgets are determined and approved by the board for them to use in the operations of their office. Elected officials can make the choice as to whether or not they will adhere to county policies. That being said, the auditor needs effective tools for enforcement, such as comprehensive policies used in the approval process. A review audit performed on other elected officials and appointed department heads does not indicate any past exceptions, but I have been researching and discussing ways to deal with items that are presented for payment and are questionable. In 55 ILCS 5/3-1005(a), the auditor's statutory duty is to: Audit all claims against the county, and recommend to the county board the payment or rejection of all claims presented. My opinion, and what I am going to ask for, is that the county board create a separate process that I can report to in those rare cases where an expenditure is rejected and not paid by me and the requestor wants to pursue the reimbursement. In most cases, however, I am able to handle the rejection with the requestor through discussion.

6. What would you do to improve the effectiveness of the position?

As stated in the above questions, I have been effective in my short time as auditor in initiating new programs and through input that I have been asked to provide for numerous countywide projects. However, I plan to introduce more financial accountability to the citizens, such as a summary financial results report called a Popular Annual Financial Report and also by providing quarterly financial reporting on the Auditor's Web page. I will be launching a documentation project of the internal control structure as required by upcoming new auditing standards as well as conducting proactive workshops for internal control brainstorming with departments. I have also been working with my senior accountant to improve and streamline grant accounting procedures. An ongoing project I started is also to bar-code fixed assets for enhanced tracking, which should be completed in 2008. These future plans, along with other financial accountability plans, are designed to improve and enhance the functions that are under the responsibility of the auditor.

7. Not including those issues already identified above, is there another issue you believe will affect the auditor's office over the next four years? If so, define it and explain how you would like to see it addressed.

I believe that I have identified most of the issues in my responses above. The most important function that I would like to address about the auditor's office is that my goal is to be a resource center for questions from the board, elected officials/appointed directors, and employees needing assistance with questions related to their job and my office. Continued training, documentation of policies and procedures, reviews and testing of transactions and procedures have to be performed regularly to ensure that the government is operating efficiently and effectively and in compliance with federal and state laws, ordinances, and policies. The independency of this office assists with some of these stated functions, while the duties performed by the auditor made the office a perfect conduit to ensure that these functions are done. I believe that continued accounting and auditing standards will continue to be issued to strengthen these functions because of the Enrons of this world. As we experience the present economic environment and its unknown duration, the office of the auditor is essential to maintaining the strong financial operations of the county.

8. Please list the names of all relatives employed by or involved in contracts with McHenry County, their relationship to you and their position or area of business.

Charles Dollman, father, sheriff's department, custodial staff in the jail for 15 years. Linda Gieseke, sister, county clerk's office, fiscal tech for seven years.