Schweich raises questions in ag department audit

Department receives 'good' rating in report

Although he questioned some of the Missouri Agriculture department's operations for the last two business years, state Auditor Tom Schweich on Wednesday gave the department a "good" rating - which, in the auditor's scales, indicates "this entity is well managed."

"I think this is one of the better audits I've issued, of a state agency, since I've been auditor," Schweich said Tuesday in an interview. "I think that Director (Richard) Fordyce should be pleased. It seems to be a well-run operation."

The 21-page report released Wednesday, covering the 2013 and 2014 state business years, noted the department gave 10 raises over the two years - more than most state employees received during the same time. The audit didn't identify the recipients by name or job title.

In its response, the department said: "The MDA compensates employees consistent with job duties and/or classification and will document any adjustments."

Schweich said: "If you are giving additional duties, you are entitled to give people a raise."

While the report cites the raises as an issue, the auditor "didn't think it was a major issue."

Schweich also reported department employees failed to inspect some grain moisture meters and scales, and some petroleum devices, in the 2013 business year.

"We found, for example, that they only inspected 97 percent of the petroleum sites instead of 100 percent," he explained.

The required inspections include making sure that fuel pumps at service stations are accurate in measuring the amount of fuel being sold. The audit showed state inspectors didn't inspect 125 petroleum sites - out of 3,880 sites required to be inspected.

"That's not good, 3 percent," Schweich said, "but when you look at some of the other reports we've done of other agencies, we've found instances a lot worse than that" 3 percent. The worst was the 19-to-23 percent failure to inspect moisture meters and grain scales.

"But even that, considering all that Agriculture does and putting it into context, it's not extremely serious."

The department said some of its problems were caused by an unusual staff vacancy rate due to retirements and illnesses as well as limited access to some petroleum sites.

The department promised to do a more thorough job in the future, and the auditor accepted that response.

The report noted the department's Wine and Grape Board annual reports "present the asset balance at the end of the fiscal year and provide a breakdown of monies received during the fiscal year (but) do not provide any information related to the expenditures made during the year."

Schweich said Wednesday: "That's a transparency issue - that's a little more serious. If we were only auditing the Wine and Grape Board, this audit would not be "good.'

"The Wine and Grape Board is a small part of the Department of Agriculture so, as a whole entity, it's not a major ding."

The audit also questioned why the department has not worked harder to fill vacancies on several boards and commissions.

Schweich note about two-thirds of the 79 board and commission members covered by the audit "are serving beyond their term." He acknowledged the governor's office has "the ultimate responsibility" to make the appointments.

"We do feel that (the department) could be a little more aggressive in trying to get new people on, as required by law," Schweich said. He noted state law allows most board members to continue serving until they're replaced.

Schweich said he wanted to emphasize the release of the Agriculture department audit because it is a good one.

"Considering all the problems they (Agriculture) had a couple of years ago, I wanted to make a point," he said, "that probably, in my (nearly) four years as auditor, this is the best audit we've given a state agency."

He added: "Everyone always accuses me of dinging everybody - and my response to that criticism is, we give a lot of good audits.

"We give about 7 percent "excellents' and about 33 percent "goods' - that's 40 percent of our audits."