Public Service Commission Audit Reveals Significant Improvements

• October 05 2023

HELENA, Montana — The Montana Legislative Audit Division completed its financial compliance audit of the Department of Public Service Regulation for fiscal years 2021 and 2022, and the results for the agency were markedly better than previous periods.

The official report presented to the Legislative Audit Committee today noted no new recommendations regarding the agency, which is headed by the Montana Public Service Commission.

“The takeaway from this report is that the commission and Department are making forward progress on our recommendations from the past,” said Karen Simpson, a financial compliance audit manager for the Montana Legislative Audit Division, in a recent podcast.

“The PSC is very pleased to come before you today having received an exceptional audit for the 2021-22 audit period,” Commission President James Brown told the Audit Committee. “This outstanding result was and is the result of intensive work and dedication on the part of the commission and agency staff.”

Brown, who was elected to the Commission in 2021, noted that Commission management has changed since prior audit cycles. He described a series of actions undertaken by the Commission since 2021 through the agency’s Strategic Planning Initiative, including:

• Revisions to the organizational structure to set up a clear chain of command;
• Creation of an executive director position to oversee the performance of agency staff on a day-to-day basis and ensure Commission directives, plans, and policies are followed;
• A requirement that two of agency’s staff positions be occupied by certified public accountants, to provide professional fiscal management and internal controls;
• Creation of a business manager position to ensure compliance with state procurement and human resource policies;
• A complete revision of the agency’s operating procedures and policies; and
• Establishment of an internal process for management to annually review agency functions, policies, and performance and identify and rank areas of risk.

Commission Vice President Jennifer Fielder, who has led the agency’s strategic planning and internal policy revisions since she joined the Commission in 2021, said it has been a heavy lift, but has been rewarding to see the best brought out in the agency. “We are a small agency with a huge opportunity to become a model of good government, and that’s what we are working hard to do,” Fielder said.

“We’ve raised our standards, implemented appropriate controls, and improved our workplace culture,” said Brown. “All of these efforts have resulted in commissioners and staff working together for better communication, coordination, and performance across all divisions of the agency.”

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