audits

Legislators blame Alcoholic Beverage Commission troubles on board members

Audits finding problems at the state Alcoholic Beverage Commission, some dating back to 2007, have led to legislators urging that members of the ABC board be replaced, reports the Times-Free Press.

Sen. Mike Bell, R-Riceville, and Rep. John Ragan, R-Oak Ridge, both expressed their belief commissioners should be ousted, and ousted soon, because of failures noted in audits in 2007, 2009 and last month.

“When you look at an audit and the first finding starts with the line ‘as noted in the 2007 financial and compliance audit,’ there’s a problem,” Bell said. ” Who [these failures] fall back on are the commissioners. That is where the buck stops. They’re the ones, in my opinion, who have not been giving proper attention and oversight to the executive director.”

“That is where the buck stops. They’re the ones, in my opinion, who have not been giving proper attention and oversight to the executive director.”

…Last month’s audit found continued failure in key areas stretching back more than a decade. The commission failed to put proper policies in place to oversee licenses, did not properly keep track or handle confiscated evidence and did not have proper conflict-of-interest policies in place, among other failures noted in the audit. (Note: The full audit report is HERE.)

The (Joint Government Operations) subcommittee voted to recommend the commission continue for at least four more years but asked auditors to follow up within a year to examine what improvements have been made.

However, if Bell has his way, the commission will have new leadership. He encouraged lawmakers and commission directors to write a letter asking Gov. Bill Haslam to replace the current commissioners.

“There will be a letter under my signature going to the governor,” Ragan assured Bell.

The commission consists of Chairwoman Mary McDaniel, John Jones and Bryan Kaegi. They did not attend the hearing Wednesday morning.

McDaniel and Kaegi were appointed to the commission on the same day in 2011 while Jones replaced his father on the commission in 1992. They each have overseen the commission during a stretch when audits found key failures throughout it.

“These were not just crossing T’s and dotting I’s,” Bell said. “These have to do with integrity of the system.”

Audit finds fault with some aspects of state outsourcing

A new audit of the Department of General Services by the state Comptroller’s office finds some shortcomings but is less critical of Tennessee’s outsourcing efforts than in a 2013 review, reports the News Sentinel.

Policies since adopted have resolved most of the previously cited problems, the new audit says, but auditors still found fault with oversight in privatization by the department’s division known at State of Tennessee Real Estate Asset Management or STREAM. A list of “findings” that were deemed troublesome by the auditors:

“STREAM executive leadership did not establish adequate processes, did not maintain updated policies and procedures, and did not provide adequate direction to staff related to leasing processes.” In general, the issues involved failure to keep track of leases, related documents and building owner compliance with terms of the leases.

“When executing lease procurements, STREAM management did not comply with State Building Commission policy or department policies and procedures.” The neglected policies included obtaining and filing conflict-of-interest disclosures and renewal of leases involving a period of more than five years or a value and/or $150,000 in value without getting official commission approval.

“STREAM’s lease management team failed to effectively track and address the state’s leases before they expired.” In a sample of 25 leases reviewed, the auditors found that in 13 cases STREAM did not review renewals and simply defaulted to a “holdover” clause in the existing lease. In six cases, STREAM had no communication with the state agency using the leased building prior to an automatic renewal.

“STREAM management did not always ensure Jones Lang LaSalle submitted all monthly reports and performed property inspections as required by the facilities management contract.” The contract with JLL calls for the company to physically inspect each building every three months if it covers more than 20,000 square feet of space; annually if less than that. In a majority of cases, the deadlines were missed, auditors said, by anywhere from as little as 10 days to as much as 957 days.

The auditors also surveyed officials of state agencies that used leased building and found that a majority declared themselves satisfied with arrangements and many complimented JLL on its handling of issues raised.

Note: The full audit is HERE.

Audit says waiting time at driver license stations longer than reported

A new comptroller’s audit raises doubts about the accuracy of how the Haslam administration measures wait times for driver’s license applicants at Department of Safety and Homeland Security-run license stations, reports the Times-Free Press.

The problem?

“[W]ait times are measured from the time a client receives a ticket at the driver license station, not when the client first enters the line at the state, to the time the examiner enters the client’s transaction into the computer upon the transactions,” auditors from Comptroller Justin Wilson’s office said.

…Regarding the driver wait time issue, auditors visited several stations to see how it all worked for themselves.

“Although we did not see lines outside the buildings during the middle of the day, some clients stated that they did wait a considerable amount of time before they got their tickets,” the 49-page audit says.

Some auditors were told of waits as long as two hours. The department is supposed to get transactions processed in under 30 minutes.

…Auditors noted the first step in the Driver Services Division’s Q-Matic computer system process, which is used to track wait times, calls for issuing tickets to each application either upon entering the (station) or, if the line is longer, setting the ticket issuer up outside the station.

“Driver license station staff are clearly not doing this,” auditors said and then went on to raise the key issue. “Without taking into consideration when clients first attempt to get services at the stations (i.e., when they first enter a line), the division cannot accurately measure all customer service delays at these stations.”

Note: The full audit report is HERE.

ABOUT THIS BLOG

Former Knoxville News Sentinel capitol bureau chief Tom Humphrey writes about Tennessee politics, government, and legislative news.

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