KBIA Local
State Auditor Can't Check Government Workers Retirement System
JEFFERSON CITY, MO
(KBIA) -
A federal judge has ruled Missouri's auditor can't do a comprehensive check on the state's retirement system for local government workers. Theo Keith has more from Jefferson City.
It was a back-and-forth battle that started with a summer request from State Auditor Susan Montee to audit LAGERS, the state's pension program for local government employees.
It ended up in Cole County court.
LAGERS executive secretary Bill Schwartz wasn't surprised by Monday's ruling, saying Montee was overstepping her authority and that the audit would've been a waste of money.
"We felt it was a waste of taxpayers' funds for them to come in and basically replicate what has already been done by an independent certified public accounting firm."
Montee thinks differently.
"They are so wrong when they say what we do is duplicating what the CPA firm does."
She says the pension program's members deserve a more transparent system.
"I feel very badly for members of the retirement system that now feel like there's something to hide within their system."
Montee says there has never been anything fishy in LAGERS' financial records before.
But that state auditor's office hasn't checked into LAGERS' finances since 2001.
Montee says she planned to look into whether the system was going out for competitive bids, and whether it was giving bonuses to employees.
Schwartz denies that's an issue.
"There is no bonus situation at all within our organization. We don't pay commissions. We don't pay bonuses."
Schwartz says the whole fight could've been solved with just one question.
"All she had to do was ask, and I would've told her."
Schwartz says the retirement system will continue to go about its business the same way.
But Montee is considering appealing the judge's ruling.
She also says lawmakers have expressed interest in changing state law to allow her to do more comprehensive audits than current law allows.
© Copyright 2010, KBIA
(2009-11-17)
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It was a back-and-forth battle that started with a summer request from State Auditor Susan Montee to audit LAGERS, the state's pension program for local government employees.
It ended up in Cole County court.
LAGERS executive secretary Bill Schwartz wasn't surprised by Monday's ruling, saying Montee was overstepping her authority and that the audit would've been a waste of money.
"We felt it was a waste of taxpayers' funds for them to come in and basically replicate what has already been done by an independent certified public accounting firm."
Montee thinks differently.
"They are so wrong when they say what we do is duplicating what the CPA firm does."
She says the pension program's members deserve a more transparent system.
"I feel very badly for members of the retirement system that now feel like there's something to hide within their system."
Montee says there has never been anything fishy in LAGERS' financial records before.
But that state auditor's office hasn't checked into LAGERS' finances since 2001.
Montee says she planned to look into whether the system was going out for competitive bids, and whether it was giving bonuses to employees.
Schwartz denies that's an issue.
"There is no bonus situation at all within our organization. We don't pay commissions. We don't pay bonuses."
Schwartz says the whole fight could've been solved with just one question.
"All she had to do was ask, and I would've told her."
Schwartz says the retirement system will continue to go about its business the same way.
But Montee is considering appealing the judge's ruling.
She also says lawmakers have expressed interest in changing state law to allow her to do more comprehensive audits than current law allows.
© Copyright 2010, KBIA
