Ex-auditor to review stimulus spending - News

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Nov. 03, 2009
Copyright © Las Vegas Review-Journal

Ex-auditor to review stimulus spending

By ED VOGEL
LAS VEGAS REVIEW-JOURNAL CAPITAL BUREAU

Jim Gibbons
He thought ex-auditor leaked information about text messages, lawsuit says

CARSON CITY -- A former state budget auditor who has filed a federal lawsuit against Gov. Jim Gibbons was hired Monday by state Controller Kim Wallin to serve as a watchdog over how the governor spends federal stimulus funds.

Mary Keating was hired for a $102,000 annual salary to serve as Wallin's reporting and accountability officer for American Recovery and Reinvestment Act funds.

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Wallin said Keating, a 27-year certified public accountant, will make sure that the $2.2 billion in stimulus funds the state is receiving are spent as directed by the federal government.

"She will serve as a check and balance to Charles Harvey (Gibbons' stimulus coordinator)," Wallin said. "Our office will ensure the information reported to the federal government is accurate."

Wallin, a Democrat, said the hiring was not because of any desire to retaliate against Gibbons, a Republican who is seeking re-election, but because Keating was the best qualified person for the job.

Because Keating will oversee the work of Harvey and state and local agencies that receive money, Wallin said her job is not duplicating Harvey's work.

Keating last year filed a federal lawsuit against Gibbons over her dismissal as head of the Department of Administration division that audits the governor's office.

She alleged in the lawsuit that she was let go by Budget Director Andrew Clinger because Gibbons believed she leaked information to the press that the governor had sent more than 800 text messages to a female friend.

That friend, Kathy Karrash, and Gibbons both have said their 15-year relationship was platonic, although in divorce documents first lady Dawn Gibbons accuses them of having an affair. The governor and first lady face a Dec. 28-31 divorce trial.

Some of the text messages sent by Gibbons to Karrash were made at 2 a.m. when he and Dawn Gibbons still were living together in the Governor's Mansion.

Gibbons also has been in a dispute with Wallin and the Legislature over the oversight of federal stimulus funds. He issued an executive order to hire Harvey, a former Clark County assistant recorder, as his stimulus funds coordinator. Gibbons also directed state agency heads not to meet with Wallin.

The Legislature, however, authorized Wallin, who oversees all state expenditures, to hire her own stimulus funds manager.

The attorney general's office issued an opinion that requires Wallin to release any stimulus funds as long as Gibbons deems an emergency exists and funds are needed to protect property. He has been making those declarations.

The Gibbons administration did not criticize Wallin's decision to hire Keating.

"What other people do is other peoples' business," said Daniel Burns, Gibbons' communications director. "The federal government says the stimulus program will be run through the governor's office. We are singularly focused on improving the economy, in creating jobs."

The administration has maintained Keating was transferred to another state agency, not fired. She was working with the Department of Health and Human Services at the time she was hired by Wallin.

Only last Friday the federal government reported Nevada has created or saved 5,667 jobs through stimulus funds.

The information the federal government relied on was sent by state agencies and local government. Wallin said Keating will review whether the information they sent was correct.

"I am very happy Mary Keating has agreed to accept the position of the ARRA reporting and accountability Officer," Wallin said. "Her background and wealth of knowledge in grants management, financial reporting, analysis, auditing, budgeting, internal controls and cost allocation will allow her to hit the ground running in helping the state to report and accurately account for the ARRA funds."

Contact Capital Bureau Chief Ed Vogel at evogel@reviewjournal.com or 775-687-3901.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. Anthony D. Snowden wrote on November 04, 2009 12:16 AM: Regarding the Spending of (ARRA) American Reinvestnment and Recovery Act Funds, Our Federal Delegation, the State, County, and Respective Municipal Governments do not have a clue as to how to direct and utilize these funds to sustain, grow or create jobs. The Department of Education, Training and Rehabilitation (DETR) lack the leadership and direction to even hold regular board meetings this, due to the absence of a quorum. Larry Mosley, Director of DETR is grossly under-qualified (In my opinion) to run an agency as large and complex as DETR. The Governors' workforce Investment Board is challenged to know what it is that are suppose to be doing. The SNWIB under the control of Councilman Steven Ross and his hand picked, illegally hired, no Workforce experience Executive Director, John Ball have systematically crippled the the Local Boards by providing contracts and employment to Board Members in return for their silence regarding policy. They have disenfranchised those persons most in need of ARRA funds to assist them in obtaining real employment. ARRA funds have been used to push an agenda that, which is far removed from the Spirit and Intent of the Job Training and Partnership Act. If the "powers that be" had a clue then they would reinvent a program similar to the Comprehensive Education and Training Act (CETA) where individuals would receive "paid" training. This Would put money into the hands of those who need it the most. There are many unanswered questions regarding the questionable use of Stimulus Funds. On 11/17/09 The County Commission will vote on a Social Service contract already promised to three(3)previously selected agencies (quid pro quo)to administer HPRP (stimulus) funds. This is a slap in the face to the many churches and other non-profit organizations doing the job. It's Ugly wrote on November 03, 2009 12:33 PM: "..the hiring was not because of any desire to retaliate against Gibbons..." Right. Bill Clinton didn't inhale. And Iran only wants peaceful nuclear power. Sorry, but this is a nasty, personal, partisan power struggle. Gibbons and the Legislature have been at odds since day one. So we get to pay two bean counters. Forget the taxpayer. We got us a war! Plus Gibbons is a Republican. Eeewwwwwwww! Our Socialist dream team finally comes to power and this Republican is running the giveaways. How distasteful! It really kills that Kumbaya spirit. what relation is this person to keating that runs umc quick care ? wrote on November 03, 2009 11:48 AM: too many chiefs and no Indians no relation to jerry keating ? wrote on November 03, 2009 11:46 AM: jerry keating was caught at the clark county fire dept, and was then transferred over to the regional transportation commission to handle funds there. doesn't anyone pay attention ? br wrote on November 03, 2009 09:57 AM: "Mary Keating was hired for a $102,000 annual salary to serve as Wallin's reporting and accountability officer for American Recovery and Reinvestment Act funds." That $102,000 salary plus payroll and operating expenses will come from stimulus funds. br wrote on November 03, 2009 09:54 AM: "She will serve as a check and balance to Charles Harvey (Gibbons' stimulus coordinator)," Wallin said. "Our office will ensure the information reported to the federal government is accurate." REDUNDANT REDUNDANT REDUNDANT DUPLICATION DUPLICATION DUPLICATION HARRASSMENT HARRASSMENT HARRASSMENT br wrote on November 03, 2009 09:52 AM: "She will serve as a check and balance to Charles Harvey (Gibbons' stimulus coordinator)," Wallin said. "Our office will ensure the information reported to the federal government is accurate." REDUNDANT REDUNDANT REDUNDANT DUPLICATION DUPLICATION DUPLICATION HARRASSMENT HARRASSMENT HARRASSMENT br wrote on November 03, 2009 09:46 AM: 'Wallin, a Democrat, said the hiring was not because of any desire to retaliate against Gibbons" I'm so relieved! br wrote on November 03, 2009 09:43 AM: "A former state budget auditor who has filed a federal lawsuit against Gov. Jim Gibbons was hired Monday by state Controller Kim Wallin to serve as a watchdog over how the governor spends federal stimulus funds." Of course she will be completely objective and fair... br wrote on November 03, 2009 09:40 AM: 'Only last Friday the federal government reported Nevada has created or saved 5,667 jobs through stimulus funds.' that was approximately 5,665 GOVERNMENT jobs. Read All Comments