Legislative Committee Releases Summaries of Recent Audits
The bipartisan Legislative Audit Committee discussed 24 audits during a 2-day meeting this week and released summaries of some of the highlights.
Staff of the Legislative Audit Division conducted the audits to provide lawmakers with independent, objective, fact-based evaluations of the stewardship, performance, and cost of government policies, programs and operations.
Audit findings and discussion included:
Accounting rules now require state agencies to report expected estimated outlays for future environmental mitigation. Most state-administered environmental mitigation focuses on past mining activities in Anaconda and Butte. Auditors informed legislators of this accounting change as part of the statewide audit, which is a snapshot of the financial condition of the state. (State of Montana financial audit, 08-01B)
Forty findings were reported in the Montana Single Audit, which summarizes internal controls of how $2.3 billion in federal funds were spent through 2,600 federal grants. (Montana Single Audit Report, 08-02)
The Department of Administration will seek legislation to clarify state printing policies. The audit found that about half of sampled state documents did not contain a required cost disclosure; more than 80 percent did not include required circulation information. (State Printing of Public Documents, 09P-14)
Montana Department of Transportation Director Jim Lynch said all executive agencies have implemented a comprehensive vehicle tracking program. The state now owns more than 7,400 vehicles - including passenger cars, trucks, snowplows, and other work vehicles - but will not buy more vehicles for the state motor pool this spring. About 80 percent of the state's 119 Toyota hybrids were recalled and repaired. (State Vehicle Fleet Management, 09P-04)
The workers' compensation "Old Fund" has $65 million in claims liability, but only $22 million in assets. (Montana State Fund, 08-05B)
Standard & Poor's recently lifted a negative credit watch placed on the Montana Board of Housing. (Montana Board of Housing, 08-07B)
State agencies should consider a centralized policy regarding disaster recovery planning for information technology systems. (Statewide Disaster Recovery Planning for Information Technology Systems, 10DP-01)
Auditors determined that four state pension plans are actuarially unsound. This means that contributions won't cover expected benefits over the next 30 years, as required by the Montana Constitution. (Teachers' Retirement System, 08-09B; Public Employees' Retirement Board, 08-08B)
Regulation of the state's 55,000 livestock brands can be improved by formalizing policies and procedures, improving management information capabilities, and reevaluating methods for re-recording brand ownership. (Recording of Livestock Brand Ownership, 09P-12)
Department of Corrections officials promised to develop adequate controls and to emphasize contract management for community facilities. (Contract Management, Department of Corrections, 09P-08)
The audit committee is considering draft legislation addressing issues with loaning personnel between agencies and the role of the committee in privatization plan review.
The committee endorsed the audit division's participation in a 5-percent budget reduction for the coming year.
Audit summaries and full text are available at leg.mt.gov/audit.
Members of the audit committee are Sen. Mitch Tropila (chairman, D-Great Falls), Rep. Dee Brown (vice chairwoman, R-Hungry Horse), Sen. Greg Barkus (R-Kalispell), Sen. John Brenden (R-Scobey), Sen. Taylor Brown (R-Huntley), Sen. Mike Cooney (D-Helena), Rep. Betsy Hands (D-Helena), Sen. Cliff Larsen (D-Missoula), Rep. Scott Mendenhall (D-Clancy), Rep. Carolyn Pease-Lopez (D-Billings), Rep. Wayne Stahl (R-Saco), and Rep. Bill Wilson (D-Great Falls).
