Missouri State Auditor Thomas Schweich audited Missouri Gov. Jay Nixon’s office, and in the report released on Sept. 5, Nixon’s office was shown to have shifted approximately $1.7 million in expenses over the course of three fiscal years.
Since January 2009, expenses from the governor’s office have been attributed to and paid for by the appropriations of other state agencies. According to Schweich’s report, without the appropriations of at least 14 different agencies, the governor’s office and mansion would have exceeded its appropriation in each of the three fiscal years audited.
The questionable nature of the Office of the Governor’s funding was first noted in the 2010 audit of the Department of Mental Health, completed by Schweich’s predecessor, Susan Montee. The report revealed that the governor’s office requested a total of $50,400 from the Department of Mental Health, allowing Nixon to bypass the General Assembly’s appropriation process.
Contributing to the salaries of at least three of Nixon’s employees and also paying for several airline flights, the $50,400 should have been withdrawn from the appropriation of the governor’s office.
“He’s basically thumbing his nose at this office and also at the law, the legislature and basic accounting principles on issues of travel and salary,” Schweich said in an interview with the Associated Press.
The circumvention of the appropriation process by the Office of the Governor emerged in three other audits: the 2011 audit of the Department of Economic Development, Division of Workforce Development; the 2011 audit of the Department of Revenue, Administrative Functions; and the 2011 audit of the Department of Economic Development, Division of Tourism.
In each audit, the department in question was found to have contributed money to the governor’s office, paying for expenses seemingly unrelated to said department. The Department of Revenue paid for 35 flights totaling more than $9,500 for the governor’s office. Only four of the flights included employees from the Department of Revenue. The Department of Economic Development, Division of Workforce spent an additional $1,630 in flights, none of which included any Division of Workforce employees.
The Office of the Governor replied to the accusations within the audit itself, stating, “The office follows state travel policy. On occasion, circumstances require some deviations from the policy but efforts to ensure the most cost effective means are implemented. The office will ensure that such instances are appropriately handled.”
In the report, Schweich expressed concern that the circumvention of the appropriation process was distorting the operating costs of each division audited.
According to the Associated Press, Schweich said the shifting of expenses makes it difficult to determine the actual operating costs of the Office of the Governor, “violates basic principles of accounting” and conflicts with the state budget’s spending restrictions.
He said Nixon could choose one of two options to bring his expenses into compliance with his office’s appropriations.
“He can get more money from the legislature, if he thinks they will give it to him,” Schweich said. “Or he can cut the costs like all the rest of us have been required to do.”
Adding to the concern were the discrepancies between the records provided by the governor’s office and those provided by the state accounting system.
The state accounting system capital asset records showed 570 items totaling more than $300,000 as of June 30, 2011, yet the governor’s office showed only 26 items totaling $130,000.
“The office accounts for its operational costs in a manner that properly reflects the nature of the work it performs,” the Office of the Governor stated in the written response included with the audit.
Nixon was unavailable for further comment.
Overall, the governor’s office received a “fair” rating, which, according to the audit report, indicates that the entity “needs to improve operations in several areas.”
