Campaign 2010

Sep 08, 2008

County Audit Details Schweikert’s Mismanagement, Incompetence

David Schweikert's three-year tenure as Maricopa County treasurer was riddled with "weaknesses" as the GOP congressional candidate struggled with serious mismanagement problems, according to an internal audit of Schweikert's department.


The troubling 32-page audit of the Maricopa County Treasurer's Office details Schweikert's under-informed investment decision-making, his failure to keep proper financial records, and his inability to address major human resources problems.  The report is available at:

http://www.maricopa.gov/Internal_audit/PubDocuments/FY2007/Reports/Treasurer.pdf

"These are 32 pages every voter should read," said Yoni Cohen, Western Regional Press Secretary for the Democratic Congressional Campaign Committee.  "David Schweikert couldn't get the job done as county treasurer. Arizona families simply can't afford to have Schweikert bring his record of mismanagement and incompetence to Congress."

The audit, conducted by internal county auditors and KPMG, a major international accounting and consulting firm, found that

 

  • Schweikert failed to keep a journal of lines of credit.  According to the audit, Schweikert's office failed to maintain detailed records of credit lines that had been awarded to school districts. This lack of documentation could lead to errors in recording amounts and results in losses to the investment pool, auditors said. 
  • Schweikert's investment decisions were under-informed, not documented.  County and KPMG auditors found that Schweikert's "investment procedures and day-to-day investment decisions are not documented and sufficient analytical investment information is not compiled and disseminated to investment pool participants."
  • Schweikert had significant "human resource management weaknesses."  Schweikert failed to hire adequate backup staff for key positions, and failed to perform rigorous background checks on staff who worked with the county's $2.4 billion investment portfolio.
  • Schweikert failed to make ‘critical' technology upgrades.  Schweikert did "not have an information technology strategic plan; although, since 1998, staff has recognized and discussed the critical operational need to replace the legacy (antiquated) system."