Wednesday, April 02, 2008

Audit shows no documentation for fee office agent qualifications

The Missouri Department of Revenue's much ballyhooed bidding for license fee offices appears to be more talk than substance.

A state audit released today shows that at the same time it was trumpeting competitive bidding for management of three license fee offices, department officials awarded six other offices without going through a bidding process. Even worse, officials were unable (or unwilling) to provide documentation to the auditors that would give an indication why those selections were made:

The department does not always solicit proposals for selection of contract agents in the state's motor vehicle and drivers licensing offices. Between September 2006 and November 2007, the department solicited proposals for the selection of three contract agents. However, it was also noted that during this same time period six contract agents were appointed by the department without soliciting proposals, which has been a long-standing practice within state government.
According to department management, the department reviews each position individually to determine whether soliciting proposals or appointing a contract agent without soliciting proposals is in the best interest of Missouri taxpayers. We requested all documentation (both paper and electronic) regarding the appointed contract agents. However, department management indicated there was no documentation supporting the decision to appoint contract agents without soliciting proposals or the actual selection of the contract agents for which proposals were not solicited.


State Auditor Susan Montee recommended that department officials solicit competitive bids for fee offices and establish qualifications for those who receive the contracts.
The officials' response did not indicate that was going to happen:

The Department concurs, only to the extent that Missouri taxpayers are best served. Following the statutory authority provided, the Department will continue to assess the best avenue for selecting contract agents. Criteria considered related to the contract offices referenced by the State Auditor included, but was not limited to: experience, knowledge, ability for taxpayers to be served by other offices in the region during the competitive bid process, and community involvement.


That appears to be a heavy-handed way of saying that department officials are going to do things the way they want, occasionally offer heavy publicity about the few fee offices that are put up for contract, and not offer any documentation on the others.

Speaking of no documentation, I am still waiting to see the wonderful plans Governor Matt Blunt said he required of those who wanted to operate license fee offices. It is amazing that the people who came up with the best plans for the most lucrative fee offices were the people who donated the most money to the governor's campaign.

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