City Auditor Candidate Questionnaire: Dan Miles

What are your qualifications for the office of City Auditor and why are you running?

I have been a CPA for over 35 years, with experience in auditing, accounting, and financial management. After starting my career at Ernst and Young, I went on to help manage the finances of well-known companies such as Coors, Pepsi and Reeds Ginger Beer. My roles were controller, auditor, and CFO. As a consultant for the Port of Long Beach, I authored the yearly budget and financial report.

While I have never sought public office before, I entered the race for City Auditor because I believe that after 16-years it is time for fresh eyes on our money. As indicated within the whistleblower and the City’s RSM report, the office of the City Auditor has been compromised. It is time for a change.

How would explain the auditor’s role within the Long Beach city government to the average voter?

Elected by the people, the City Auditor is the independent fiscal watchdog for the public. When limited public resources are wasted everyone suffers. Waste and abuse mean that there are less available tax dollars to spend on essential government services. I pledge to continue looking for ways to make Long Beach City Hall spending public. This means performing routine and targeted audits on a regular basis, something the current administration has failed to do. 

Is there an audit or performance review completed during the incumbent’s tenure that you would have done differently? Explain.

While there has been a measurable drop-off in the number of audits performed by the incumbent since 2015, one audit in particular stands out which I would have done differently – the Queen Mary. Action to audit the private operator should have taken place sooner. Instead, Laura Doud waited five years before acting. She then outsourced the audit to an outside vendor instead of performing the work in house. Had the audit been done sooner, public tax dollars could have been saved.

If elected, what audit or performance review would be your biggest priority during your term and why?

As a rule, I believe that the Auditor’s focus should be on areas of high appropriation and spending, as well as on areas that have a large policy impact on life in Long Beach. An example is affordable housing. Housing is the number one cost for most people, as well as a large budget item for the city. It is vital that our housing programs are run efficiently, follow best practices, and that taxpayer money is not wasted. Otherwise, the most vulnerable amongst us suffer.

A recent investigation found that the City Auditor’s office failed to follow its own guidelines when overseeing two contracts with consultants that have paid out over $1.5 million since 2006. While the resulting report⁠—issued by an outside auditing firm hired by the city⁠—found that there was no “clear evidence of misappropriation,” a whistleblower report alleging misappropriation of funds is currently being reviewed by the Los Angeles County District Attorney’s Office. What is your response to these allegations?

The allegations contained within the whistleblower report, as well as the findings of the City’s own outside audit report conducted by RSM, are deeply troubling and a clear violation of the public trust. We now know that the City Auditor’s office paid two political consulting and lobbying firms, with whom Laura Doud has close personal ties, more than $1.5 million in fees over 15-years. As the RSM report cites in five instances, “it is not possible to determine the reasonableness, appropriateness, applicability of the work, or the fairness of the cost to the city for the services of Davis Group…” and “Kendel Gagan.” Mrs. Doud has yet to explain the services and work product these firms provided to the City of Long Beach. Further investigation is required. The office of the City Auditor has been compromised.

Long Beach is one of only four cities in California with an elected auditor, while most others have appointed City Auditors. Should Long Beach’s City Auditor continue to be an elected position and why?

The fact that Long Beach is one of only four cities in CA with an elected auditor is an asset to the citizens of Long Beach. As an independently elected public official, the City Auditor is accountable directly to the people. As the public’s fiscal watchdog, the Auditor must have the trust of the people. Integrity. Transparency. Accountability. Have the integrity to do the right thing, even when no one is watching. Be transparent in your actions. Be held accountable by the voters.

How do you propose the auditor’s office improve its ability to detect waste, fraud, and abuse of public assets within Long Beach’s city government?

As the saying goes, “sunlight is the best disinfectant.” When it comes to government spending, transparency is essential in preventing waste, fraud, and abuse. As City Auditor, I will work to bring Open Checkbook to Long Beach in order to provide public access to data related to government spending, budgets, contracts, and revenue. That means every expenditure made by the city will be publicly available on the City Auditor’s website. This will bring transparency to the City of Long Beach’s spending, enabling residents to understand where their tax dollars are being spent. This program is now used by states and municipal governments across the country, including the City of Los Angeles.

What would you do to increase public awareness about the city’s current spending, potential areas of waste, and neglected areas of spending?

Beyond promoting transparency through the implementation of Open Checkbook, I will continue to work to engage voters across Long Beach to hear their thoughts and ideas, as well as talk about the ongoing work being conducted by the City Auditor. An effective way to closely communicate with the people will be through the continuation of the “Porch Talks” I have utilized in the campaign. I will also continue to meet with neighborhood associations and business groups to maintain an open dialog and engagement with the people.

The City Auditor’s office is designed to be independent from the rest of the city government. Do you see any opportunities to strengthen the office’s independence?

It is important that the City Auditor maintain the trust of the people. This means being truly independent and accountable only to the voters. From the outset of this campaign, I have pledged not to accept political campaign contributions or endorsements from individuals or groups with direct interests before the city. This avoids any appearance of impropriety. In addition, promoting transparency and leading by example by following best practices help to build and maintain public trust.