Dennis Leone: Internal auditors tried to tell us; were likely ignored

From: Dennis Leone

To: Nancy Hamant

Sent: Monday, April 17, 2006

Subject: Re: [News] Message From the Executive Director

..........and one shocker I received, Nancy, not too long ago was gaining access to an internal memo written by one of the two internal auditors. This memo, written by Robert Vance, warned the Board about "abusive expenditures," about "deliberately vague receipts," about improper alcohol purchases, and about inappropriate meals for spouses on trips, etc. Vance wrote about what he called a "common theme" among Board members who supported the expenditures, which, he wrote, was "one of entitlement." He quoted one unnamed board member, who said: "I am Board member who works hard and for free........we deserve this."

Without a doubt, the internal auditors NOW are listened to when they issue such conclusions. They tried in years past, but, in my opinion, were ignored.

Did you see in Mary Ellen Angeletti's one report where Hazel said on the witness stand that she was joined for one Broadway show by the representatives on the Board from both the State Auditor and the State Attorney General. I will endeavor to find out if that is true. It is no wonder that Taft vetoed Fedor's bill giving power to the State Inspector General to investigate STRS and issue findings. He would have produced a report that would have been very, very embarrassing to Petro and Montgomery.

Dennis Leone