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State Auditor launches rapid response team, plans to enforce audits (AUDIO / VIDEO)

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The State Auditor’s Office has organized a rapid response team to launch some audits, and is also working to start enforcing audits after they’re done.

State Auditor Tom Schweich says his rapid response team — led by Former Greene County Prosecutor Darrell Moore — will jump to action when possible fraud, violations of the law, or a loss of confidence in the government is brought to his attention.

He says too often, audits are compromised because people destroy documents and evidence. His rapid response team would prevent that from happening.

Schweich also wants to make sure state audits are more than just suggestions. He says an accountability program will add weight to state audits.

He says his office does have the authority to enforce audits, and that’s what he intends to do.

[Read more…]

Montee to conduct review of Ag Department’s Grain Regulatory Services program

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The State Auditor’s Office has begun an audit of the Department of Agriculture’s Grain Regulatory Services program. State Auditor Susan Montee says the request for the advisory review came from Agriculture Director Jon Hagler in the wake of a grain elevator failure in Gallatin and a fraud case in Martinsburg.

Montee sees this as an effort to review current practices and to come up with ideas for making improvements in the future.

“We’re going to take look at the laws that are in place and see if they’re outdated or if there’s ways that the Legislature should look at changing things,” said Montee in an interview with the Missourinet. “We’re also going to look at other states and see what other people are doing and just come up with some new ideas that might prevent something like this from happening in the future.”

Agriculture Director Hagler agrees it makes sense to borrow good practices from other states.

“In order to be protecting Missouri farm families we need to be on top of our game,” hagler told the Missourinet. “That requires taking a look at ourselves and taking a look at other states and finding out what tools we can put in the tool box.”

Montee insists the purpose of the audit is not to heap criticism on the Department of Agriculture.

“We know that it isn’t something that, with the current structure, the Department of Agriculture could have prevented,” insisted Montee. “They were doing everything that was required of them.”

First and foremost, this will be a cooperative effort.

“There’s always some ways to improve it (current practices regarding grain elevators),” said Montee. “So we’re just going to take a look at that with them and we’ll be working together on trying to come up with some new ideas and a new way of doing things.”

Preliminary meetings have already been held and the actual field work should begin soon.

Download/Listen: Steve Walsh report (:60 MP3)

Tom Schweich tours state to formally announce bid for State Auditor

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Former special U.S. Ambassador to Afghanistan Tom Schweich formally enters the Republican race for State Auditor in 2010 as he launches a whirlwind tour of nine Missouri cities in which he is announcing his candidacy.

Tuesday’s events began with a kick-off announcement in Schweich’s hometown of St. Louis, followed by stops in Columbia, Kansas City, and Springfield. Wednesday’s scheduled stops are in Hannibal, Kirksville, St. Joseph, Joplin, and Cape Girardeau.

Schweich has never run for public office but did give some thought to the idea of running for the U.S. Senate seat being vacated by Senator Christopher "Kit" Bond (R-MO). In an interview with the Missourinet, Schweich said it was during the time he considered the Senate run that it was suggested he mull over the idea of running for State Auditor.

"At the same time I was looking at the Senate race," said Schweich. "A lot of people, both in the private sector – businesspeople – as well as public officials said, you know, with your background in investigations as a prosecutor – I’ve conducted financial audits – you really have the experience needed to be a credible candidate for Auditor and you ought to think about that."

Schweich believes that while financial audits are important, performance audits are needed, as well.

"When I was in the State Department in the Law Enforcement Bureau, I did performance and accounting audits of hundreds of millions of taxpayer dollars," said Schweich. "In order to really make sure taxpayer money is being well spent you don’t just audit the books, you audit the way they’re running the office."

Schweich is the second Republican in the race for State Auditor. Missouri House Budget Chairman Allen Icet (R-Wildwood) previously announced his intention to seek the office. Schweich is confident he will be able to raise the money needed to wage a competitive campaign.

Download/Listen: Steve Walsh interviews Ambassador Tom Schweich (8:00 MP3)

Schweich in race for State Auditor

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He had been considering a run for the U.S. Senate seat currently held by Senator Christopher "Kit" Bond (R-MO). Now Thomas Schweich is announcing he is a Republican candidate for State Auditor in 2012.

Schweich, a former special U.S. Ambassador to Afghanistan and a protege of former U.S. Senator and former U.S. Ambassador to the United Nations John Danforth, will travel the state this week to make official his candidacy.

The first stop comes Tuesday in St. Louis, followed by announcements later that day in Columbia, Kansas City, and Springfield. Schweich will make swings through Hannibal, Kirksville, St. Joseph, Joplin, and Cape Girardeau on Wednesday.

Schweich, who attended Yale and Harvard Law Schools, is a member of the faculty of Washington University School of Law in St. Louis. He has never run for public office. He becomes the second announced Republican in the race for State Auditor. House Budget Committee Chairman Allen Icet (R-Wildwood) prevously announced his candidacy for the office.

House Budget Chair running for State Auditor

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The Chairman of the House Budget Committee wants to be the next Missouri State Auditor. Representative Allen Icet (R-Wildwood) has announced his candidacy for the statewide post in 2010.

House Budget Chairman Allen Icet In a written statement, Icet touts his defense of taxpayer dollars: "Over the past four years as House Budget Chair I’ve worked to bring prudent fiscal management to the state’s budget," explained Icet. "As Missouri’s next state Auditor, I will use that experience to continue protecting taxpayers by fighting for accountability and transparency in state spending."

Icet, who was first elected to the Missouri House in 2002, took over as Chair of the Budget Committee in 2005. He received his Bachelor of Science Degree from Texas A&M University in Civil Engineering and earned a Master’s in Business Administration from Washington University in St. Louis. Icet and his wife have four children.

Allen Icet’s conference call with reporters (11:00 MP3)

Audit finds fault with operation of AG’s Medicaid Fraud Control Unit

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An audit of the Attorney General’s Office’s Medicaid Fraud Control Unit finds internal controls, procedures, and the keeping of records must be improved.

According to the audit there is no initial record of the receipt of monies, a summary of accrued costs is not maintained, and written collection procedures have not been established. The audit states that by not adequately monitoring accrued costs the costs could remain uncollected, resulting in lost revenue to the state and the federal governments.

In addition, the audit concludes the Unit does not have one comprehensive database to account for all referrals received. Currently, three separate databases are used and they are not linked to each other.

Audit finds fault in Ag Department fiscal management

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Susan Montee Sloppy bookkeeping seems to be at the heart of criticism contained in a state audit of the Missouri Department of Agriculture.

The audit finds that the department didn’t keep enough documentation, that it disbursed grant funds in a hurried fashion and it failed to follow-up on safety inspections. State Auditor Susan Montee says the Ag Department needs to more closely verify whether ethanol and bio-diesel investors truly qualify for the tax breaks they receive. Montee wants the Agriculture Department to more closely monitor such funds.

Deputy Agriculture Director Matt Boatright says they are. Boatright points out such work is new to the department with three bio-fuel plants just a year and a half ago and 20 now.

The legislature has provided more money so the department can hire an auditor. The State Auditor says internal procedures need to be shored up to increase accountability in all the department’s programs.

The auditor projects incentives to ethanol investors could grow to more than $77 million dollars and more than $284 million to bio-diesel investors. 

Download/listen Brent Martin reports (:60 MP3)

State Audit of Governor’s Office Zones-in on Use of State Vehicles

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Susan Montee An audit of the Governor’s Office focuses primarily on transportation issues and how the Missouri law regarding the use of state vehicles is unclear and potentially conflicting.

State Auditor Susan Montee says a 2005 law allows for transportation and security for the Governor’s Office, but goes too far in that it also includes transportation for political purposes. Montee says that while the Constitution prohibits the use of public resources for political purposes, the 2005 statute appears to allow the use of state vehicles for political activities.

She insists she is not telling lawmakers what to do, but it suggesting the General Assembly could settle this conflict by revisiting the 2005 law and making clear the intent.

Download/Listen: State Auditor Susan Montee on Audit of Governor’s Office (33:00 MP3)

Auditor Dismisses Suit Against MOHELA Over Closed Records

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The lawsuit brought against MOHELA – the Missouri Higher Education Loan Authority – over access to closed records has been dismissed.

The suit had been filed by State Auditor Susan Montee (D-MO), who wanted the information to determine whether the MOHELA audit report that was released in October would need to be supplemented.

Auditors reviewed the closed records on Monday, determining that all required information has now been provided. So, the lawsuit has been dropped.

Auditor Denies Request to Audit Nixon’s Records

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State Auditor Susan Montee has refused to audit records of Attorney General Jay Nixon’s use of a state car for personal and political purposes. The request had come from Office of Administration Director Michael Keathley. Montee says the Governor, himself, has to ask for the audit.

Keathley says the audit should be done to determine if Nixon’s reimbursement to the state of more than $47,000 is adequate.