Posts tagged: audit
In his 16 years as Idaho’s state treasurer, Ron Crane has built up the state’s credit rating, launched a popular college savings program and a free annual control-your-finances conference for women, and helped create a bond bank that lets local school bonds and other local-government debt take advantage of the state’s favorable interest rates, potentially saving property taxpayers millions. But he’s best known for a series of critical state audit findings over the past five years, the most recent suggesting that Crane made an inappropriate transfer between two funds that cost the state’s taxpayers more than $10 million.
Crane vigorously disputes the audit finding, contending his office did nothing wrong and made reasonable decisions based on what it knew at the time. “As to the charges of the audit, I maintain and will maintain that they were politically motivated,” Crane said in an interview. “We think there’s an excellent explanation for each one. When voters understand what the real explanation is, they will agree with our position.”
The audit findings have prompted a longtime Twin Falls CPA, Deborah Silver, to challenge Crane in this year’s general election. “I would absolutely follow the auditors’ suggestions, no argument, no excuses,” said Silver, a Democrat who taught accounting at the College of Southern Idaho for five years and has operated a CPA firm with her husband in Twin Falls for nearly three decades. “This is a job that I can do.”
The Spokesman-Review asked David Burgstahler, the Julius A. Roller Professor of Accounting at the University of Washington, to review the audit finding about the fund transfer and Crane’s detailed response. “I found the auditor’s conclusions pretty convincing,” Burgstahler said. You can read my full story here at spokesman.com.
Here’s a news item from the Associated Press: BOISE, Idaho (AP) — Auditors with the Idaho Legislature say State Treasurer Ron Crane has not provided enough evidence that a full review was conducted following an inappropriate money transfer. The auditors found earlier this year Crane's office overrode internal controls meant to contain financial risk and the transfer resulted in a loss of at least $10.2 million loss of taxpayer money. The 90-day follow-up audit says Crane's office asserts it has reviewed its securities lending transactions but has only provided state officials with documentation for two specific transactions. Crane, a four-term treasurer, has disagreed with the report's findings. He did not immediately return calls from The Associated Press. The report also says state auditors will assess the effectiveness of Crane's office reorganization in a later review.
Click below for a full report from AP reporter Kimberlee Kruesi.
An official with the U.S. Department of Health and Human Services says an Idaho agency spent $2.5 million in leftover welfare funding correctly, contrary to the findings of a state audit, the AP reports. Idaho's Legislative Services Office released an audit last week that examined how state agencies spent federal money. In the report, the auditors concluded that the Idaho Department of Health and Welfare wrongly used the money left over from the 2008 budget for Temporary Assistance for Needy Families to cover salaries instead of using it to help pay for food, housing and other assistance.
But department officials contested the auditors' finding, saying that federal rules changed at the start of fiscal year 2009 to allow states to spend leftover funds on all services that help keep needy families together — including the costs of providing those services, like salaries. The department used the money to cover part of the salaries of social workers who focused on keeping the state's poorest children out of foster care by placing them with extended family members when their parents could not care for them. After the audit was released, state welfare officials sought guidance from the federal agency to see if they'd done the right thing.Yes, said Karen Code in an email sent to the state; click below for a full report from AP reporter Rebecca Boone.
Here's a news item from the Associated Press: BOISE, Idaho (AP) — Idaho Treasurer Ron Crane has revamped how he documents some of his office's expenses, after concerns raised by state auditors last year. A 2012 audit of Crane's office determined expenses from his annual bond-rating trips to New York, including limousine transportation, weren't properly reported. Auditors also questioned Crane's use of a state credit card to buy $8,000 in gas for his personal car, and his office's funding of a women's financial conference. In a report released Tuesday, auditors say Crane buttressed record-keeping for the New York trips, requiring employees to document specific expenses. He now tracks gas purchases, reimbursing Idaho for personal trips. And while auditors contend Crane is still inappropriately funding the women's conference, he has revamped its nonprofit board — to distance its leaders from the treasurer's office.