Lawmakers rip state agencies over recent audits

Wednesday, Dec. 18, 2002 | 11:06 a.m.

CARSON CITY -- Democratic legislators ripped into three state departments Tuesday over recent audit findings that listed a widespread lack of accountability and mishandling of public money.

The audits, released last week, highlighted numerous problems at the Information Technology Department, the state Forestry Division, and the Nevada Transportation Department, which handles millions of dollars.

At Tuesday's meeting of the Legislative Commission, legislators said that in a state that is facing a projected $800 million budget shortfall and considering new and increased taxes, government waste can't be tolerated.

Assembly Speaker Richard Perkins, D-Henderson, said what bothered him the most was that information technology workers claimed and were paid for overtime when they weren't even on the job.

"That's criminal," said Perkins, who is deputy chief of the Henderson Police Department.

But Legislative Auditor Paul Townsend said he would not be referring the audit findings to the state Attorney General for possible prosecution because the employees had been supported by the management of the department. Management didn't see the actions as criminal, so there was no intent shown, Townsend said. Management viewed it only as record-keeping discrepancies, he said.

The commission focused on the information technology department's $300,000 in overtime costs. Lead auditor Rocky Cooper said $131,000 of that overtime went to five employees who amassed 3,200 hours of overtime. Cooper said there were virtually no controls on payroll at the department.

Department Director Terry Savage said the employees worked far more overtime than they were compensated for. Cooper, though, said there were no records that support that statement.

Senate Minority Leader Dina Titus, D-Las Vegas, said Tuesday that her worst suspicions about a lack of stewardship and disregard for public responsibility were confirmed by the audit of the state Transportation Department. Other Democrats at the meeting joined in the criticism of the department.

Perkins said the agency ignores the directives of the Legislature, and Sen. Valerie Wiener, D-Las Vegas, said she was "concerned about the helter-skelter process to select projects."

The legislative audit noted that the department doesn't have any written criteria for the selection of roadway projects for funding and lacks documentation regarding how it sets its priorities. The audit also criticized the department for failing to have an inventory of the $350 million of land it owns and failing to keep complete records about the disposal of excess property.

State Transportation Director Tom Stephens disagreed with the audit findings. When it was released, Stephens said, "The (selection) process, with all its complications and judgmental factors, has served Nevada well and has resulted in a good, well-balanced highway program.

"Unfortunately, project decisions do not and should not fit into some canned formula," he said.

But Stephens also agreed to provide better documentation in the future on how priorities are set in road building projects.

Perkins said he did not quarrel with the assertion by the transportation department that all of the road building projects were needed.

"My problem is this Legislature sets policy as to what we want to accomplish," he said. "I don't get the sense that the Department of Transportation gives a hoot what the Legislature thinks.

Wiener questioned if there was a disproportionate share of money being spent by the transportation department in any area. Stephens said last week that 80 percent of the new construction money is going to Southern Nevada and a majority of the maintenance funds were being spent in Northern Nevada, which has older highways.

"I'm discouraged to find out the inefficiencies we have in some areas," Perkins said after the meeting. "It does tell us there are areas in state government we need to continue to look for waste. And we have to rid state government of waste at the same time we find solutions to the looming deficit."

The audits will be sent to the legislative budget committees and other committees in the Legislature to make sure the agencies are following the auditors' recommendations.

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