Judge denies state auditor the right to audit retirement system
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Judge denies state auditor the right to audit retirement system

Date: November 16, 2009
By: Theo Keith
State Capitol Bureau

Intro:  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.
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OutCue:  SOC

Wrap: 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.

Actuality:  SCHW1.WAV
Run Time:  00:07
Description: "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.

Actuality:  MONTEE2.WAV
Run Time:  00:05
Description: "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.

Actuality:  MONTEE5.WAV
Run Time:  00:07
Description: "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.

Actuality:  SCHW2.WAV
Run Time:  00:05
Description: "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.

 

Actuality:  SCHW4.WAV
Run Time:  00:03
Description: "All she had to do was ask, and I would've told her." (LAUGHTER)

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.

From the State Capitol, I'm Theo Keith, Newsradio 1120 KMOX.

Intro:  A judge has denied the state's auditor the right to audit Missouri's retirement system for local government workers. Theo Keith has more from Jefferson City.
RunTime:  0:45
OutCue:  SOC

Wrap: State Auditor Susan Montee can't take a comprehensive look at LAGERS, the state's retirement system for local government workers.

LAGERS executive secretary Bill Schwartz says he wasn't surprised by the Cole County judge's ruling.

Actuality:  SCHW3.WAV
Run Time:  00:10
Description: "I think her goals were to come in and look at a lot of stuff that we, quite frankly, didn't think she had the authority to do."

Schwartz says it would've been a waste of taxpayer money for Montee to look at the same things another accounting service already records.

Montee says that's wrong - her audit would've looked into other things that aren't on LAGERS' financial statement.

She says she hasn't decided whether to appeal the ruling.

From the State Capitol, I'm Theo Keith, Newsradio 1120 KMOX.

Intro:  Missouri's state auditor is asking why the state's retirement system for local government workers wouldn't let her audit its records. Theo Keith has more from Jefferson City.
RunTime:  0:39
OutCue:  SOC

Wrap: State Auditor Susan Montee is baffled why LAGERS, the state's pension program for local government workers, would sue her office over looking at LAGERS' financial records.

Actuality:  MONTEE4.WAV
Run Time:  00:12
Description: "I think if you look at past audits, there were really not a lot of issues with LAGERS. So, I really don't know what happened this year that they're trying to hide and protect from scrutiny."

Montee says she hasn't decided whether to appeal a federal judge's ruling in the retirement system's favor.

A LAGERS official says there's nothing to hide - Montee was simply trying to do a more comprehensive audit than state law allows.

From the State Capitol, I'm Theo Keith, Newsradio 1120 KMOX.

Intro:  Missouri's state auditor has two options to fight against a judge's decision Monday that she can't audit the state's retirement program for local government workers. Theo Keith has more from Jefferson City.
RunTime:  0:45
OutCue:  SOC

Wrap: A Cole County judge ruled that State Auditor Susan Montee can't take a comprehensive look at LAGERS, the pension program for local government workers.


Montee says lawmakers have approached her with plans to change state law so she can look at LAGERS' finances in the future.

Asked if that's the only way to get a look at the books, Montee wouldn't rule out the possibility of appealing the federal judge's ruling.

Actuality:  MONTEE6.WAV
Run Time:  00:10

Description: KEITH: "Now that the court has ruled this, the only way to get in and take a look at the books is for lawmakers to make a change, is that right?"

MONTEE: "Well, that, or we could decide to appeal, and we are looking at that."

While Montee makes her decision, a LAGERS official says the system will continue with its own yearly audits without Montee's office.

From the State Capitol, I'm Theo Keith, Newsradio 1120 KMOX.