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| ND Treasurer Kelly Schmidt's Reign of Incompetence |
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| Written by Chet | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Friday, 10 February 2012 09:51 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Here's what the Auditor's Office has written: Condition: The Office of State Treasurer made several errors in their closing packages submitted to the Office of Management and Budget (OMB). The closing packages are used by OMB to prepare the state’s Comprehensive Annual Financial Report. One of the errors exceeded $4.6 million and another error exceeded $2 million. In our judgment, there is an unacceptably high risk of additional errors occurring. Effect: Fixing these errors caused unnecessary complications for OMB and introduced the risk of additional errors occurring during a period of peak work demands. Cause: Individuals responsible for preparing and approving the closing packages do not understand the closing package process and the requirements of generally accepted accounting principles. Criteria: At the end of each fiscal year, all state agencies are required to report financial information to the Office of Management and Budget in closing packages. The criteria are contained in the Office of Management and Budget CAFR Closing Manual and generally accepted accounting principles. Recommendation: We recommend the Office of State Treasurer ensure that individuals responsible for preparing and approving the closing packages have adequate knowledge and training to ensure closing packages are properly completed. State of North Dakota Comprehensive Annual Financial Report (empahasis added) We, the citizens of North Dakota, need to ask ourselves whether we can afford to have this person in office any longer. Luckily we'll be presented with a solid alternative in November. I know of at least one Democratic-NPLer who'll be on the ballot. Look for more information about that competent candidate for the North Dakota Treasurer's Office soon. I think we deserve better. [Follow-up: I'm starting to think this is the same report that was presented to the LAFRC committee last summer, that was reported back in August of last year. What I don't understand is this: I called the State Auditor's Office this morning and asked if this report had already been presented to LAFRC, and they told me it had not. After looking at the language in the story from last year, I'm just not sure of that. Maybe the language is universally applicable to Schmidt, so they just cut and pasted it from the report from last summer. I don't know.]
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Comments (18)
big jake
said:
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The North Dakota State Auditor's Office recently made public its "Comprehensive Annual Financial Report" for the State of North Dakota for the fiscal year ending June 30, 2010. It's a fairly unremarkable report, for the most part. There is one notable exception. North Dakota State Treasurer Kelly Schmidt continues to woefully mismanage her office. She seems to be physically and mentally incapable of putting together the reports she is required, by law, to make. Worse, she's also incapable of putting together a team that can do the work she's required, by law, to do. And her incompetence is putting public funds she manages in a state of "unacceptably high risk."|
... Chet, obviously, there is some misperception here. Why are you under the impression that competence counts? It is not and has not been about competence for some time. It is a sad impression of a good ole boys network----like what we think exists in Alabama or Missippi. We should have understood this during and following the WSI mess. For reasons that we can only speculate on, the press dropped the ball and refused to pick it up. The public, for reasons that we can only speculate on, failed to demand justice and accountability. One would think that the Republicans would quietly come to her rescue. Maybe they still will. Her incompetence has been known for a long time. Maybe the alternative press will pick up on this. The public has a right to be informed. As good as is this blog, it has limitations. Too bad. Once again, we need a functioning Democratic party to stand up. Maybe they will. |
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What the Heck
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... This is what happens when you have elections for positions that require technical competence. Nothing to prevent the incompetent to run for, and win. The general public doesn't understand the need for technical competence. After all, if you can get on the ballot it must mean you can do the job. Yes, they most likely cut and paste the same language into the new report if the condition still exists. If the top dog in the office doesn't understand or have an appreciation for generally accepted accounting principles, how the hell can they be expected to hire competent people. Maybe it's time these positions are no longer elected. We don't elect doctors and lawyers, why are we electing other people to professional positions that normally require degrees, certifications, and appropriate continuing education. It's an embarrassment to the accounting and financial management professions. I wouldn't trust this lady to bag my groceries. |
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big jake
said:
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... What the Heck, I must disagree with your conclusion. The failure of this lady is not in her inability to be a "professional", it lies in her failure to put competent people around her. Her job is political. She must have the right people to do what her office calls for. Additionaly, it is the job of the Governor to oversee all of these offices, both officially and unofficially. What you are advocating is just the opposite of what it takes to make our democratic Republic work. If we follow what you are suggesting, eventually, we could dispense with the messy election process. Next, we could just have a King or some sort of dictator. I realize that I am stretching for the sake of making a point. Incompetency comes and goes. It is part of the system. We as voters make mistakes or sometimes people just can't do the job. That is why we have elections. It is a sad fact that elections in recent times have not yielded the best results. If we understand and bring our principles to like, this will be corrected. It is up to us. As far as I am concerned, this is the consequence of a one party system. Some of the Republicans might be better than they are if they had some check and balance. As it is, the arrogance and sense of entitlement cannot yeild goood government. |
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What the Heck
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to Big Jake In a few states, the Treasurer is appointed by the Governor. A handful have a different title altogether such as Comptroller. I noticed a couple states have the Legislature elect the Treasurer (that would be a diaster in ND, I'm no advocate of that approach either). You can't choose competent people for your team if you have no understanding of what the team needs to consist of in terms of skill set. While I agree it is possible to select competent people to surround you, it would be far better to mandate the boss actually possess technical expertise commensurate with their responsibilities. It would be far better to make it an appointed position. At least then the Governor could be held directly responsible for their choice. That seemed to be the argument to solve WSI's problems, although I for one never thought that would fix that organization's issues. |
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Gadfly
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Beyond competence or qualifications... you have to have character, principles, a shred of integrity, or nothing works. Here you have a person drunk with the little bit of power she has acquired by hook or by crook. Unfortunately for the taxpayers, she has none of these qualities. Keep in mind, she did hire a CPA and got the same results. So it's not a question of hiring a more qualified staff; she would corrupt them as well. Big Jake is right. The Gov has the statutory power to order her to step down pending an audit, but he has to have a letter from the auditor asking for his intervention. Fat chance! Her closing troubles will continue because turnover is a problem because she is a rager. She rages when angry. People are literally afraid of her. I suspect Bob Peterson is afraid of her too But I could go on and on. |
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What the Heck
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... So she's a horrible person to boot. Great. I agree with Gadfly that Bob Peterson will never have the courage to suggest to the Governor what needs to be done, just like he never had the courage to ensure a proper audit was done at WSI to review claims. Oh sure, they did audits. Not the comprehensive, unbiased and microscopic one that was necessary. Kudos to Dickinson State's internal auditor for having the courage to issue the report just released to the public on their problems. Although I suspect he or she had probably been squelched for a some time and only recently was allowed to do their job with a new administrator on board. I'm speculating, of course. Others within this state need to step up like DSU and acknowledge their issues so they can be addressed. The Treasurer's office, WSI...I'm sure there's a lot more we don't know. |
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Voter
said:
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Perhaps Maybe the Towner hick will fix things if he wins. Either that, or everyone will have access to playground equipment. |
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Jim
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... One of my Republican Legislator friends told me this funny: "Every Legislator's worst nightmare is to be walking down the Great Hall and spot Kelly Schmidt coming toward you, then turning around and spotting Al Jaeger coming from the other direction." |
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big jake
said:
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... ... "One of my Republican Legislator friends told me this funny: "Every Legislator's worst nightmare is to be walking down the Great Hall and spot Kelly Schmidt coming toward you, then turning around and spotting Al Jaeger coming from the other direction." I just love it. Even some of the Republicans can spot bad news--they may not want to fix it but they recognize it. In general, I favor as many elected offices as can be set up. North Dakota's is pretty good---reflective of a healthy distrust of government(not tea party style or Grover Norquist) that believed that elections put government closest to the governed. We still have some positive effects of the NPL. Hick???? sounds like Fargoites that believe that anyone who lives west of West Fargo to be a wheat savage and just inferior. Your patently uninformed bias needs to be exposed. I will contribute my part in doing that. Take a good look in the mirror, take a deep breath and attempt to think about what you appear to believe. Hope springs eternal. From my perspective, Taylor's biggest challenge is to resist the pressure from the black or white cats. He is young but youth can be a big assest. He has integrity and sincerity. We don't have to worry about Dalyrmple being influenced by the black or white cats, he is one. If you think that he has the best interest of ND or anyone but his boys at heart, you are really living in a dream world. Please, somebody, tell us what Dalyrmple has to offer? |
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Voter
said:
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Hicks and Rubes Adam threw out this gem: "So all ranchers are hicks now? That'll go over really well in Rural ND..." Where did I say that all ranchers are hicks? Are you indeed inferring that all ranchers are hicks because Ryan Taylor is a hick. Apparently "aw shucks" is a selling point for you. I don't hold out as much hope as your ilk that rope spinnin' will solve the environmental impact of oil drilling in western ND. Even according to his own website, he's currently "sitting a hitch" in the Senate. Either he's a hick, or he's made a name for himself by pandering to the rubes. I suspect it's a bit of both. I don't share your enthusiasm at the prospect of him sitting a hitch in the Governor's office. |
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Adam
said:
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so his fitness for office should be judged by his dialect? He's got a cowboy dialect, but that doesn't make him a hick (read: idiot). That's how he grew up speaking. It says nothing about his ability to run the state. |
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What the Heck
said:
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... I wonder if critics of Taylor's cowboy lingo are the same folks who think gun totin' mama grizzly Palin fit for VP or President. Give me the cowboy lingo and an ounce of integrity any day. |
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nimrod
said:
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Well, excooooooooose me! At least he's not like George W Bush, who after attending prep school in Connecticut and college at Yale, affected a hick West Texas accent. Pardon me, but our governors don't ALL have to graduate from Ivy League schools. |
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Voter
said:
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What the heck you are absolutely correct - Sen. Taylor sounds exactly as idiotic as Palin or Bush. Folksy populism isn't a substitute for actual leadership. We ND Dems need to rise above that if we are to win the governorship. |
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What the Heck
said:
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to voter Folksy lingo aside, there's a huge difference between the two. Taylor is qualified for the job and has a vision. |
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nimrod
said:
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... . . . and Schmidt, who after years of experience in the Treasurer's office and guidance from the SAO, still does not appear competent to hold her office. But, she has the champions of crony capitalism behind her. Let's see which bankers and brokers donate to her campaign fund. |
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fargoguy
said:
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... I challenge also the writer who calls Ryan Taylor a hick, and I believe not in a complimentary way. I am from Fargo. Yes, Ryan Taylor may speak rancherese, yes, Ryan Taylor may have an accent, but damn the elitist who feels they can draw all kind of conclusions from that alone. I have had the great opportunity to visit with Mr. Taylor....he is intelligent, thoughtful, asks good questions, listens well, and has all the qualifications of being a great leader. And, he is authenic. Go ahead and call him a hick....it says more about you than Ryan. |
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