By Gregory Korte
The Cincinnati Enquirer

DOWNTOWN - The city manager's editing of a controversial audit report of the Empire Theater scandal is drawing renewed calls for reform of Cincinnati's Internal Audit Division.

Thursday, the city's Internal Audit Committee asked the city's audit staff to report directly to the committee, and asked City Manager Valerie Lemmie to stop exercising editorial control over audits.

The final version of the Empire Theater audit, released in late October, placed the blame on Community Development staffers who approved payments of $184,172 to developer LaShawn R. Pettus-Brown. He hasn't been seen since January; the FBI has a warrant for his arrest.

But 19 earlier drafts of the audit show that Finance Director William E. Moller and then Lemmie made substantial revisions to the audit findings - including allegations that council members and the mayor's office had interfered with Community Development.

Internal Audit Manager Mark Ashworth said former City Manager John F. Shirey never edited a report.

Moller said the changes weren't an attempt to cover anything up. Rather, Lemmie felt City Council wasn't within Internal Audit's jurisdiction.

"She had a concern about commenting too strongly about what City Council did or didn't do," Moller said. "The city manager's concern was going overboard in being critical of the mayor and the council."

The Internal Audit Committee consists of three council members and two outside members appointed by the mayor.

Both of the "independent" members - Patricia Basti and David Raasch - agreed that city auditors need more independence.

E-mail gkorte@enquirer.com