March 28, 2024
BANGOR DAILY NEWS (BANGOR, MAINE

State auditor reiterates concern about faulty financial statements> Scribner: Responsibility falls on all branches of government

AUGUSTA — State Auditor Rodney L. Scribner expressed concern Thursday about errors in financial reports issued by state agencies and said the mistakes could prove costly.

Noting that he has been raising similar concerns for the past six years, Scribner said the problems don’t seem to be getting better and aren’t likely to go away on their own.

“People have been preoccupied with the budget crisis, and that’s part of the problem,” he said.

In his annual report, Scribner cautioned that the problems could lead to lower bond ratings and to sizable repayments of grant funds received from the federal government.

Among the problems cited:

Incomplete and inaccurate financial statements, which he attributed to a failure to assign enough people to financial reporting.

Improper auditing of nonprofit organizations which receive government funds, a shortcoming that Scribner said has prompted threats of sanctions by the federal government.

Faulty debt payment procedures. As an example, he said a tax anticipation loan of $150 million was financed outside the budget.

“All branches of state government are part of this ongoing problem,” Scribner said in a statement.

“Repeated stopgap financial gimmicks are creating long-term problems for the state. A conscientious effort is needed by all state departments, including the Legislature, to promptly address the problems that have been identified in recent audit reports,” he said.

State Rep. Lorraine N. Chonko, the House chairwoman of the Legislature’s Appropriations Committee, said she had not reviewed Scribner’s report but was not surprised by his criticism.

“I’ll be anxious to read his report,” the Topsham Democrat said.

Finance Commissioner H. Sawin Millett, who is Gov. John R. McKernan’s chief budget adviser, said he also had not seen the report.


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