Montee Raises Conflict of Interest Issues With Lobbyist Contributions

State Auditor Susan Montee said that the state House and state Senate should reconsider soliciting donations from lobbyists to pay for things like Christmas parties, retirement receptions and lapel pins.

Montee released two audits targeting the General Assembly's practices Monday.

Read the Senate audit HERE.

Read the House audit HERE.

Montee said the main problem with the Senate is that the body has set up a private bank account for the contributions, that she does not view as allowable.

Montee said the main problem with the House is a lack of disclosure, and that lobbyists should be required to disclose their contributions.

"We do have significant concerns over potential conflicts of interest . . ."

*WATCH HER COMMENTS ABOVE*

Montee Audit Questions Campaign Contributions to MHDC

"An Attitude Needs to be Adjusted"

A new state audit of Missouri's housing commission (MHDC) suggests that campaign contributions may be influencing where the state's development dollars go.

WATCH THE KY3 NEWS @ 10 REPORT HERE

State Auditor Susan Montee is recommending that elected officials should not make decisions about housing projects submitted by individuals that they've received campaign contributions from.

"The perception is clearly out there that there is a system in place that encourages campaign contributions in return for projects. Whether that's the case or not, it certainly is a perception," said Montee at a press conference in Jefferson City Wednesday.

*WATCH MORE OF HER COMMENTS ABOVE*

Montee notes "questionable uses of public funds"
The audit covers between 2006 and 2008, when Governor Matt Blunt, Lieutenant Governor Peter Kinder, Attorney General Jay Nixon and Treasurer Sarah Steelman were the four elected officials on the commission. The MHDC has four statewide officials and six other commissioners.

While Montee's audit noted that it was difficult to match "specific donations to developers," it concluded that the perception is that money influences how the projects are selected.

"Something we don't talk about here implicitly in the conflict of interest is whether or not there needs to be a total different way of dealing with the fact that developers are giving campaign contributions to commissioners," Montee said.

A major benefactor of tax credits from the Housing Commission has been former Springfield Mayor Tom Carlson and his former development partner Mark Gardner. The two have tapped into tens of thousands of dollars to revamp old buildings into apartment complexes around the city for low and moderate income people.

A review of campaign finance reports over the past four years shows that Carlson-Gardner entities have donated close to $15,000 to candidates who sit on the board. Other Springfield developers and citizens have privately expressed concern about a system that seems to favor the well-connected, but neither Carlson or Gardner responded to several requests for comment.
The MHDC said it was reviewing its standards of conduct related to that issue.

***ALSO: Other audit findings questioned housing commission expenditures, like $15,000 spent on alcohol for receptions and $18,000 to reimburse the executive director's legal fees. That's due to an ongoing FBI investigation.

Montee Zaps Ozark For Documentation

A state audit found that the City of Ozark often doesn't properly document how it spends taxpayer money.

***

At a meeting Tuesday night, State Auditor Susan Montee presented recommendations but said there as no criminal wrongdoing.

"We're not questioning whether or not there was a good decision made in either one of these, but we couldn't even evaluate whether there would be because there was not adequate documentation," Montee said Tuesday night.

*WATCH CLIPS ABOVE TO GET TO MONTEE'S POINT*

"That is a risky area when you're talking about taking cash and not being able to tell if your deposits are being made . . . For instance, that's what led to fraud in the municipal court in Springfield."

WATCH SARA FORHETZ'S KY3 NEWS @ 10 REPORT HERE

A citizen petition by local activist Claude Kinser prompted the audit.

Powell Zaps Steelman on Audit

Democratic candidate for State Treasurer Mark Powell is seizing on a state audit to criticize Sarah Steelman's management of the office she currently holds.

An audit released by Susan Montee revealed that leave taken by Deputy State Treasurer Doug Gaston to work on Steelman's campaign for Governor was not reported in a timely matter.

“This gross oversight by the current State Treasurer further indicates the need to have professional management of the treasurer’s office. The Deputy State Treasurer is paid more than $92,000 per year, is expected to be in the office working for the state, and is expected to be a financial professional, not a political campaign aide to the treasurer," said Powell in a statement.

Powell also criticized Steelman for making an "irresponsible" campaign promise in 2004 to bring "three billion dollars" back to Missouri. "[It] was an impossible promise to uphold and nothing more than political pandering to the banking industry and to the voters. It made for a good campaign line, and it got her votes, but there’s more to being the treasurer than talk and campaign promises. In all actuality, there was $2 billion invested in federal obligations in 2004, not $3 billion. Today there is $3.5 billion invested in those same federal securities, an increase of 75%, rather than the reduction promised by her," Powell said.

In other Treasurer's race news, Rep. Clint Zweifel is up with a new website for his candidacy for Treasurer. www.ClintforTreasurer.com features an interactive map allowing visitors to view endorsements Zweifel has received based on geographic region. Zweifel also offers a campaign blog. Zweifel is thought of as the frontrunner for the Democratic nomination for Treasurer.

Coonrod (Jokes) About Audits

"Holy cow! The county's going to be audited. But it was Christian County."

---Greene County Commissioner Dave Coonrod, joking with attendees during his welcoming speech at Jackson Days. He told an audience that he "feared" Greene County was getting audited, when it was really Christian County. Coonrod was certainly speaking in a joking mood when he later sucked up to State Auditor Susan Montee. "Can I get you a drink later?," Coonrod asked playfully with grin.

A Sleeper Issue?

AUDIT FINDS LOW INCOME HOUSING CREDIT "COSTLY AND INEFFICIENT"

BLUNT: REMOVE ELECTED OFFICIALS FROM COMMISSION

Rep. Page Critical of Oversight

A state audit released Thursday criticized the State Housing Commission's use of tax credit program designed to build more low-income housing. The audit could serve as a springboard to for the housing commission to become an issue in this election year.

Auditor Susan Montee called the tax credit program "costly and inefficient." Read the complete report HERE.

In response, Gov. Matt Blunt again renewed his call for the General Assembly to pass legislation removing all elected officials from the commission. The governor said a state audit released today reinforces a recommendation he received last year by a bipartisan panel he appointed to review the MHDC.

“Last year I formed a bipartisan panel to conduct the first ever full government review of the state’s housing agency. This Blue Ribbon Panel suggested a change to remove elected officials from the Commission to remove the perception that politics may play a role in its decisions," Blunt said.

“Lt. Gov. Kinder and I have called for legislation to remove elected officials from the Commission and the release of an audit today stating there is a perception that ‘political influence impacts project selection’ reinforces the need for this change," he added.

“Making this aggressive change will allow the Commission to focus on its core mission of providing affordable housing to Missourians and eliminate any perception that politics are at play in the Housing Commission’s actions.”

Currently, the governor, lieutenant governor, attorney general and treasurer serve on the commission.

Montee's audit revealed that only 35 cents from every dollar spent on tax credits for the Low Interest Housing Tax Credit program goes toward constructing new housing. The remaining 65 cents goes toward administrative costs and other overhead that doesn't directly build more housing for Missouri's poorest citizens, according to Rep. Sam Page, who's running for Lieutenant Governor.

"With the next leadership the MHDC can be a wonderful program," Page said. "As lieutenant governor I'll be committed to using taxpayer dollars in a fiscally responsible manner to get the best value for our investment in affordable housing," he added.

"I want to encourage fair and open competition and accountability," he said. "Pay to play must end."

Nixon: The Check's In The Mail

Jay Nixon's campaign for Governor said it has mailed a check for $8,618.40 to the Office of Administration to reimburse the state for his use of a vehicle during political trips.

“We wanted to make sure the campaign properly reimbursed the state, which is why we asked the Auditor to conduct this review in the first place,” said Oren Shur, Nixon’s campaign spokesman.

“We received the Auditor’s letter a couple days ago and immediately put a check in the mail. We consider this matter closed and will continue to focus on the issues important to Missouri voters, like fixing the state’s health care crisis and turning this economy around," Shur said.

OA: Nixon Owes Taxpayers $8,600 for Car

MONTEE INFORMS OFFICE OF COST

Attorney General Jay Nixon must reimburse the state $8,618 for his use of a taxpayer-owned vehicle during political trips, according to the Office of Administration.

The request comes today from Commissioner Mike Keathley, who asked that Auditor Susan Montee look into Nixon's use of a state vehicle.

"Jay Nixon underpaid the taxpayers of our state by thousands of dollars and he should immediately pay what he owes for the political use of his taxpayer-funded vehicle," said Office of Administration spokesperson Rich AuBuchon. “Auditor Montee has provided a good review based on the limited information she acquired,” AuBuchon added.

"We cannot conclude with certainty that the state was fully reimbursed for the non-official use of a state vehicle and office staff from November 2004 through October 2007,” Auditor Montee wrote. “An exact amount cannot be determined due to inadequate records or lack of records. Although some of the assumptions used by your campaign staff to determine the reimbursement amount may be questionable, other methods may not produce results that are more reliable or acceptable because of lack of records,” the letter said.

Republicans are pouncing on all of this. “Jay Nixon lied to Missouri taxpayers about the amount of money that he had stolen from them to help finance his political career. Nixon provided a false number to the public and the media in a desperate attempt to cover up his malfeasance. And despite her best attempt to try and provide political cover for Nixon with her politically-motivated audit released just yesterday, Montee has been forced to bust Jay Nixon,” said Paul Sloca, spokesperson for the Missouri Republican Party.

Montee Audit Targets Blunt Vehicle, E-mail Policy

JEFFERSON CITY, Mo. (AP) A state audit of the governor's office released Thursday points out continued problems with political and personal use of state vehicles.

The audit from Democratic State Auditor Susan Montee recommends legislation be enacted to explicitly define when state-owned cars can be used by the governor for purposes other than official business.

But Republicans call Montee's audit "a taxpayer financed media release" for Jay Nixon's campaign for Governor. "In particular, Montee’s attempt to question the use of vehicles as part of the governor’s security detail is a transparent political attempt to try and counter Jay Nixon’s clearly illegal use of state vehicles for political events exposed late last year by the media," said Republican party spokesman Paul Sloca. “Susan Montee is clearly using her office and taxpayer dollars to support Jay Nixon’s political campaign which is pathetic.”

While We Were Auditing

Not sure what I'm going to do with all this time now that the city of Springfield's 3 audits have been completed . . .

Oh wait . . .

Now news of another possible state audit of the City of Ozark. Claude Kinser tells KY3 News the mayor there told him that some criminal activity may have led to missing city money. The Mayor denies that.

Meanwhile . . .

• Governor Blunt announced he wants $2.5 million to expand cancer screenings for women under the new "Missouri HealthNet."
• Missouri House Democrats proposed a "Homeowners Bill of Rights." Proposed legislation would require state licensing of mortgage brokers. Another bill would cap payday lender rates at 36%.
• Mike Huckabee now has something to lose. The lead.
• The State Dems hit Rudy while he campaigned in Columbia, saying he lacks the judgement to be the next president and implying he's unethical. Then Rudy got sick, and had to stay the night at a St. Louis hospital. He'll be released Thursday afternoon to get back on the trail to try and win back his drop in recent national polls.
• Illegal Immigration seems to be the current firing ground in the race for Governor. Blunt spokesman Rich Chrismer says Jay Nixon refuses to support E-Verify, which the Governor wants to mandate.

Anything else . . .?

Oh, looksy HERE . . . Tom Tancredo just endorsed Mitt Romney.

POWER PLAY: CU Audit Raises Legal Questions

ICY AUDIT STINGS CITY UTILITIES
Tension Filled Room
Targets Include Subsidies, Spending, Salaries
Auditor Montee Calls Spending "Unconstitutional"
CU Wants Finding Removed
"City Utilities opinion is they've done nothing wrong ever."

City Utilities customers may be paying too much for some utility services as a result of subsidization of other departments and spending that may be unconstitutional, according to an audit presented by Susan Montee Tuesday night.

You can watch my KY3 News @ 10 report and read the full audit report HERE.

City Utilities vigorously defended its financial decisions and said they contribute to the quality of life in the Springfield area. The Utility also called the unconstitutional finding "serious" and requested it be removed from the public report. "To make such an allegation without substance or evidence casts unfounded doubt on legitimate business activities," reads the Auditee's Response.

The Auditor said $259,000 in spending on picnics, and donations to other entities like community groups and schools is a clear violation of the Missouri Constitution. Montee said the Attorney General may ultimately have to resolve the disagreement.

Customer Ed Marble called CU "a good utility," but called its response to the audit "pathetic." "I think the main thing I saw was CU not being open with financial disclosure," Marble said. Montee said the main difference between this audit and the audit of the city is "the willingness to work on recommendations." She said the city seemed more willing to embrace change than the utility.

Former CU Board Chair Virginia Fry said she didn't understand Montee's response. She said the utility is always looking for ways to improve. But General Manager John Twitty declined to name any specific recommendation CU would be immediately willing to adopt. Twitty will appear live on Ozarks Today Tuesday morning to talk more about the findings.

City Attorney Defends Springfield Projects

"If you want to make sure you never lose money, you don't do it."
Wichmer Responds, Finnie Not Talking

City Attorney Dan Wichmer defended the city's policy and financing decisions for major projects that were criticized in a state audit released Thursday.

Former City Manager Tom Finnie declined KY3's request for an interview.

You can watch KY3's Cara Restelli's report HERE.

Top City Projects, Big Contracts Are Target of Montee's Audit

Financial decisions made to develop some of Springfield's top downtown projects were the target of a highly anticipated state audit released Thursday.

In a 70-page report, State Auditor Susan Montee said the city has made decisions that have required "a significant amount of resources, and accumulated a significant future liability for the city."

"A considerable amount of city funds have been spent as a result of poor planning and poor oversight," Montee wrote.

Montee is recommending the city hire its own internal auditor to help resolve financial problems and better plan for the future. The city appears to be embracing the recommendation.

You can watch my full report on the audit on KY3 News @ 10.

To read the executive summary of the audit report, click here.

To read the full 70-page audit report, click here.

The City said it was pleased that none of the findings suggest financial mismanagement or missing funds. "I'm pleasantly surprised," said Councilman Doug Burlison, who led the charge for the audit as a private citizen. "It could've been a lot worse, but we all now know we have problems that we need to address, so I think it was worth it," Burlison added.

City Spokeswoman Louise Whall released a statement saying the city will move quickly with the Auditor's recommendation for an internal auditor position. "The Council will hire an internal auditor on a contract basis for the short term to specifically address recommendations in the audit. From there, Council will determine the best way to structure the position for the long term," Whall said in a statement.

The following are some of the main findings in Montee's audit:

• The city paid $693,000 to demolish and design the Heers building without soliciting bids.
• The terms in the city's agreement for the College Station project do not appear to be adequately protect the city's investment.
• The city has spent more than $3 million dollars on a police/fire training facility that still does not exist.
• The Jordan Valley Ice Park has a $6 million dollar deficit. It was projected to be self-supporting but it is not.
• Some city employees have received over $100,000 for unused leave time on retirement.
• City contracts with the former City Manager, former City attorney and City lobbyist were not always followed, documentation for work was vague and not always adequate.
• The city has not developed a proper plan to refund bonds for the crime lab.
• The city should perform a cost benefit analysis of its city owned vehicles. 25 city vehicles were driven less than 1,000 miles a year. Consolidation of services is needed.
• Better controls are needed on the city's 450 purchasing cards issued to various employees. Excessive spending and unnecessary purchases were found. The Parks Department assigned fuel cards to employees who do not use or need them.

Ron Davis, over at Chatter, called it "a definite black eye" for former City Manager Tom Finnie. Davis also takes aim at Mayor Tom Carlson, who was a no-show for the audit's release.

Haven't been able to track down any other reaction from the blogosphere as of yet . . . Let me know if you do . . .

Audit Report Due Thursday

A state audit on the city of Springfield will be unveiled this Thursday, Dec. 6th.

"This document will give Springfield residents an opportunity to seethe true financial and infrastructure picture of the city", said Libertarian Tom Martz, one of the audit's chief petitioners.

"A lot of people worked very hard to make this audit a reality, and now we get a chance to prove its critics wrong," added Keith Rodgers, chairman of the Greene County Libertarian Party.

Rodgers is urging people to attend the presentation of the audit, read the report, and follow-up by calling on their elected representatives and non-elected city officials to do more than just offer solutions.

"The people who run Springfield need to act on the responses given by the Auditors' recommendations. Had this had been done in the past, perhaps the million-plus dollars missing from the Municipal Court might have not been missing in the first place," Rodgers said.

The audit hearing by State Auditor Susan Montee will be held at 7:00 p.m. at the Springfield City Council building, on 830 N. Boonville in Springfield.

City Will Get Draft of Audit Next Week

City Council members will receive a draft of the state's audit of Springfield next week, according to a spokeswoman for the State Auditor's office.

The KY3 Political Notebook has learned the state is in the "exit portion" of the audit. As typical procedure, the state will ask the city for responses to its findings and then take another two weeks or so to process the final report.

"We are shooting for a public report of our findings by the end of November," said spokeswoman Samantha Brewer.

Auditors still have a fair share of work to do with City Utilities portion of the audit, according to Brewer.

She hopes that portion will be finalized before year's end.