Regulators on Montana’s Public Service Commission promise lawmakers a fresh set of internal checks and new hires following a state audit that uncovered mishandled funds.
Recently elected Montana Public Service Commission Chairman James Brown announced the resignation of one state employee and job postings for several new positions at a Legislative Audit Committee hearing Monday.
“We need better leadership at the PSC and we need commissioners to start being responsible for their own actions and actually following their own internal policies,” Brown said.
Monday’s hearing was the latest step in a financial-compliance audit released last week that found the Montana Public Service Commission failed to report expenses, filed incomplete paperwork and mishandled funds.
The audit revealed that administrator Mandi Hinman, who has since resigned, attempted to backdate a document during the audit and that current vice chairman Brad Johnson used funds to buy a comfort class airplane seat when traveling instead of a lower cost option.
Johnson was not present at the audit hearing but the rest of the five-member commission attended in person or virtually.
Chairman Brown agreed with the audit’s findings but declined to sign it, saying he wasn’t on the PSC in fiscal years 2019 and 2020, the time period audited. He told lawmakers that the PSC is responding to the audit by reorganizing staff, retraining where needed and hiring a new accountant and an executive director to help keep internal controls in place.
The PSC and the Legislative Audit Committee are scheduled to reconvene in October for a progress report.
