Updated: 07/16/2013 10:35 PM KSTP.com By: Cassie Hart
KSTP found major flaws in the State’s new accounting system, which the State paid $70-million to implement, and it could have far-reaching consequences for taxpayers. It caused a three-month delay in submitting financial statements to the Federal Government, in violation of the law.
That means it could affect the State’s credit rating and, if it does, the State (taxpayers ultimately) would be charged a higher interest rate every time the State borrows money. It could also lead to sanctions against the State by the Federal Government.
In an exclusive interview, the guy in charge of auditing State Government spending, Legislative Auditor, Jim Nobles, explains the problem and why taxpayers have a right to be concerned about how $17-billion dollars of their money was spent in 2012.