State audit reveals major error in accounting ???

“In my fourteen years on Audit this is the first time the financials for Montana shouts of incompetency within the department.”

Montana Senator Dee Brown

Montana Senator Dee Brown

Guest Articleby Senator Dee Brown, Legislative Audit Committee

The financial audit for the State of Montana revealed some disturbing problems today in front of the Legislative Audit Committee in Helena. The audit detailed that the Department of Administration does not have adequate internal controls to ensure accuracy of our finances, nor are they properly reviewed or issued in a timely fashion.

Some of the examples include: transportation expenses overstated by about $220 million, capital grants and contributions for Natural Resources understated by $445 million and transfers of about $47.8 million which were omitted entirely.

The hundreds of millions of dollars not accounted for properly are huge red flags for anyone reading the audit, but the one that made my eyes bulge was the overstatement of approximately $1 billion of accumulated depreciation related to infrastructure. Yes, that’s with a ‘b’ as in billion.

The errors have been (more…)

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