Expansive Role of the State Auditor requires more than accounting skills and mindset.

Now that the BPOU conventions are over, I’ve been calling state delegates asking for their support. Your response has been overwhelming, and I thank you for that. In addition to almost all the CD Chairs and Vice-Chairs, we’ve garnered the public support of National Committee members Brian Sullivan and Evie Axdahl, former Senators Rod Grams and Norm Coleman and most of the current legislators. Thank you all for your confidence in my candidacy.

Our race continues to make news locally and now nationally in an interview at “Single Conservative Guy,” an interesting website that profiles conservative women making their marks across the nation. The interview is available on the PatAndersonforAuditor.com website, and you can also read it at SingleConservativeGuy.com. Scott Schneider, the “single guy” site creator, also has an interesting profile of Minnesota’s own Twila Brase of the Citizen’s Council on Health Care. It’s a good read.

One question that has come up in a few of my delegate calls is whether it is an advantage or even a requirement for the State Auditor to be a CPA. That’s a good question to talk about – especially if you are unsure exactly what the State Auditor’s office does. One of my opponents, Jeff Wiita, (who is a 26 year employee of the State Auditor’s office) has been arguing that case.

On first blush State Auditor = Auditor and therefore the question. However, this is the equivalent of arguing you must be a surgeon in order to be a head hospital administrator. In the case of the State Auditor’s office you can make an equally valid argument that the State Auditor should be an attorney or a research professional as a CPA. Here’s why.

The Minnesota State Auditor is a constitutional officer independent of the Legislature and the Governor. The primary function of the State Auditor is to ensure local units of government are spending taxpayer dollars correctly and wisely. The office has oversight of over $20 billion in taxpayer dollars spent in cities, counties, school districts and other local entities. The State Auditor also oversees all state and local pension funds, publishes reports on revenue and spending and investigates allegations of misuse of public funds.
The office has three main functional areas, each overseen by a Deputy State Auditor.

The Chief Deputy is an attorney who oversees the Special Investigations, Pension, TIF and Legal divisions. The State Auditor’s office has investigative and subpoena power and writes legal opinions related to local government. Staff members in these divisions are attorneys or finance/investment professionals, not CPA’s. The Pension Division reviews investment, financial and actuarial reporting for 730 public pension plans. The Legal/Special Investigations Division investigates allegations of theft or misuse of public funds.

The second major functional area is Audit Practice. This is the division that performs local government audits. A few of the staff hold their CPA license, including the Deputy State Auditor who oversees the division. Mr. Wiita works for this division and is a licensed CPA. This division performs approximately 150 financial and compliance audits and reviews approximately 400 single audits per year. When I served as State Auditor, I began the process of privatizing parts of this division, a necessary move to make the office more cost efficient and to insure that reports are completed in a timely manner — something that is not happening today due to ineffective management of staff, not any ineffectiveness on the part of a very good staff (many who worked for me).

The third functional area is the Government Information Division which collects and analyzes local government financial data, analyzing and assembling it into regular reports provided to the Legislature and the public. It also conducts a Best Practices Review of local government operations and provides an education function, working with Minnesota’s local governments helping them to be successful stewards of public funds. This division is filled with research personnel and is lead by a Deputy who has a public information and research background.

In addition, the State Auditor is looked to for opinions on legislation that affects local units of government. Everything from local government aid formulas, county and school district mandates, public employee contracts, even the effectiveness of JOBZ (tax incentives to business that locate designated geographic areas) and TIF districts (Tax Increment Financing).

The State Auditor also serves on the State Executive Council, State Board of Investment, Land Exchange Board, Minnesota Housing Finance Agency, Public Employees Retirement Association, and Rural Finance Authority Board.

As you can see from this broad range of involvement, the State Auditor’s authority is broad and goes way beyond financial audits. She has significant influence on Minnesota government. Her role is to be the expert on local government – both from a financial, legal and organizational aspect. She runs the office, sets the agenda, and speaks on proposed legislation that affect her area of oversight.

Truth be told, the best experience a State Auditor could bring to the table is local government experience. My experience as a member of the city council and Mayor of Eagan proved invaluable during my first term as auditor and provided perspective for my staff.

Given Minnesota’s budget problems and the need to reform the role and relationship of state and local government, this is going to be a big job over the next several years. Should I receive your nomination next month, I intend to play an active role in that needed discussion.

Thanks for your support –

Pat