By PHIL DRAKE
HELENA – A recent Department of Commerce audit found that a grant payment was OK’d by a state employee who now works for the nonprofit group that received the funds.
Few details regarding the nonprofit grant were provided in the report reviewed Wednesday by the Legislative Audit Committee, but it did recommend the department follow rules to ensure all grant payments are valid.
“We believe the department’s established contract and payment authorization controls are vital to its overall control structure regarding grant payments,” the auditors wrote. “Adequate authorization controls are important to ensure the department pays only valid grant expenditures and complies with applicable state and federal laws and regulations.”
In a written response to the audit, Dore Schwinden, DOC director said the department “partially concurs” with the recommendation.
“The department has two controls for the contracts,” he wrote. “The first control is to have the program complete a contract checklist to attach to the contract.” He said the form is then signed by an authorized signator and fiscal and legal reviewers.
The second control is that when the contract is returned to the department, it is then signed by the division administrator of director, Schwinden stated.
“We are currently ensuring all signatures are obtained on a contract checklist,” he wrote.
Schwinden said he has no information as to who person was who OK’d the funding and the situation. He said his department had 2,000 active contracts and all but three had the required signatures.
The committee chairman, Sen. Mitch Tropila, D-Great Falls, expressed surprise at the answer.
“How can you partially concur where we found instances where you were not following controls?” he asked. “What part don’t you concur on?”
Schwinden said his department could make improvements and said the advice from the auditors was appreciated.
Tropila said that he did see some sloppiness in not following controls and said he wanted assurances that funds were being spent appropriately. He said the auditors found controls were in place and some not being followed.