Auditor General asks Detroit City Council for $1.4 million increase, four auditors to meet charter duties

Auditor General Laura Goodspeed told the Detroit City Council on the opening day of budget hearings that her office needs four additional full‑time positions and $1.4 million in new funding to meet charter‑mandated oversight responsibilities.

The request came during the Office of the Auditor General's fiscal year 2026 budget presentation to the expanded Budget, Finance and Audit Standing Committee. Goodspeed said the Mayor’s proposed budget is essentially “status quo” for the office and the administration’s proposal would only raise the office’s funding modestly (from about 0.36% to about 0.37% of the prior year general fund), while the office’s target equitable funding (TEF) percentage is 0.46%.

The reason for the requested increase, Goodspeed said, is to add four auditors to expand an “enhanced risk management” team that would allow the office to perform more timely investigations, complete performance audits on a wider set of programs and conduct accounting and forensic work that the office currently outsources. “We add value,” Goodspeed said in the presentation, stressing the office’s independence and professional credentials.

Goodspeed told council members the office is currently budgeted for 21 full‑time employees, with two vacancies, and that her TEF staffing target is 25 FTEs. She said the office’s fiscal year 2025 budget is about $5,300,000 and that the TEF target would be $6,800,000. The presentation included an estimate that the city’s Annual Comprehensive Financial Report (ACFR) work accounts for roughly $1.9 million of the office’s costs; Goodspeed said those costs are included in the TEF calculation.

Goodspeed outlined several operational constraints the office faces, including scope limitations when records or system access are unavailable, the proliferation of department‑specific software that does not interface with enterprise systems, and delays in receipt of documentation. She said the charter grants the Auditor General subpoena power for needed data when necessary.

On audit tools and technology, Kevin Nasati, Chief Auditor, said the office uses AuditBoard software and that the software includes AI features, but the city’s DoIT policy has not yet authorized AI use. “We currently don’t utilize it at this time,” Nasati said; both he and Goodspeed said the office is ready to adopt AI tools once city IT policy permits.

Goodspeed also reported on other office activity: the towing rate commission she chairs reviewed rates and the council adopted new towing rates earlier in 2025 that will take effect July 1, 2025; the office has been performing several audits and expects reports on city payroll later in March; and external audits for the fiscal year ending June 30, 2024 were completed by the external auditor (Plante Moran) with unmodified opinions. She said the city will solicit competitive bids for external audit services in April.

Goodspeed presented claims data showing the office received 29 appealed claims totaling about $192,000 in 2024, and that roughly 92.6% of those property claims involved tree damage. She noted state governmental immunity limits the Auditor General’s authority to award certain claims denied by the Law Department and that claimants retain the right to file in court.

The office described ongoing office renovations: Goodspeed said the original approved request was $600,000, that contracts have been finalized and the total projected cost is $814,000, and that the office is working with the Office of the Chief Financial Officer to secure an additional $220,000 included in a proposed supplemental appropriation.

After the presentation, Council President Mary Sheffield moved the Auditor General’s budget into executive session at Goodspeed’s request. “Hearing no objections, we will do so,” Sheffield said; the move proceeded by unanimous consent.

The presentation included requests that the City adopt a funding formula required by the Proportional Funding Ordinance (passed July 30, 2024), which would set oversight agencies’ funding as a percentage of the prior year general fund. Goodspeed said the ordinance requires Council by resolution to adopt the funding formula; that resolution was on committee agenda and had been referred to the Budget, Finance and Audit Standing Committee earlier in the day.

Council members asked for follow‑up information on several items, including details behind scope limitations and the office’s plan to use contractual professional services for specialized audits (forensic accounting, data analytics and IT security reviews). Goodspeed said the additional contractual authority and four staff would allow the office to procure specialized services and complete investigations more quickly.

The hearing then moved on to the next departmental presentation.