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Fort Smith board moves to recruit internal auditor and direct Baker Tilly talks; DPI to assist pro bono

3657021 · June 3, 2025
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Summary

The board authorized Director Neil Martin to continue negotiations with Baker Tilly on an expanded internal-audit scope, approved engaging DPI Staffing pro bono to recruit candidates, directed HR to post the position on the city website, and set a not-to-exceed $5,000 advertising budget; the motion passed 7–0.

The Fort Smith City Board of Directors on June 3 set multiple steps to fill and support the city’s internal audit function after a prolonged vacancy and a contested hiring earlier this year.

The board authorized Director Neil Martin to continue negotiations with Baker Tilly about a revised scope of outsourced/internal-audit services and authorized use of DPI Staffing (which offered recruitment support at no labor cost) to conduct a candidate search. The board also directed the human-resources department to post the job on the city’s website and asked that all resumes be submitted directly to the Board of Directors. Directors approved a not-to-exceed $5,000 allocation for advertisement and candidate travel expenses associated with the search. The combined motion passed by unanimous roll call, 7–0.

Background: Baker Tilly has provided limited contracted internal-audit support under a 30-hours-per-month arrangement that several directors described as too small to deliver a robust audit program. Director Neil Martin said Baker Tilly can provide specialized expertise (IT, utilities, etc.) and has offered to return with a tailored proposal that would expand and clarify deliverables. Some directors and members of the public expressed concern about earlier hiring and record-keeping practices; public commenters urged a transparent, board-driven hiring process and recommended posting the job widely (LinkedIn and targeted auditor-oriented job boards were discussed).

DPI Staffing indicated it could provide candidate screening and identify three to four qualified candidates within 30 days. Director Rigo and other board members expressed preference for a board-led hire and for excluding administration from the recruitment process. Director Christina Kasaves noted that, under Arkansas law (Ark. Code Ann. §14-48-117 as cited in discussion), the board may alter the extent of administrative authority by ordinance and emphasized the board hire model.

Board discussion also covered budget context: the internal-audit budget cited by staff is about $607,000 annually, and directors discussed possible ranges to expand contracted services if needed. Board members asked that any Baker Tilly proposal include a clear plan to transition work to a permanent in-house hire if the board opts to recruit a city employee.

The board’s motion spelled out four related actions: continue Baker Tilly negotiations (Director Martin liaison), engage DPI Staffing for recruitment (board liaison to oversee), direct HR to post the opening on the city website with resumes directed to the board, and authorize advertising/travel expenditures not to exceed $5,000. The motion passed 7–0; staff and the nominated liaisons will report back to the board on timelines and candidate slates.