Arkansas Treasurer Martha Shoffner Back in the Hot Seat Before Legislative Committee
By: KARK 4 News
Updated: December 15, 2012
Arkansas Treasurer Martha Shoffner is back in the hot seat before the Legislative Joint Audit Committee.
She and some of her staff have been testifying this morning about results of an audit earlier this year that targeted investments by the Treasurer's Office.
Shoffner opened her testimony by reading a prepared statement thanking the audit staff, and saying the policy is sound. She noted that the audit covers 30 of 900 bond sales.
She told the panel that her office has hired a new investment manager (Hunter Johnson) and that investment policies have been tightened.
Other highlights from the first two hours of testimony:
Rep. Tim Summers asked Treasurer's Office CFO Autumn Sanson why some bonds in 2009 were sold before maturity. She responded that the bonds were sold before maturity on the advice of brokers saying further that the office did not do an independent analysis. Soon after it was revealed that records showing advice of brokers were not kept and there is no existing record or documentation about it.
KARK 4 Reporter Adam Rodriguez who's covering the hearing, reports via Twitter that: "Shoffner seems a little hazy. Begins several sentences, but trails off and fails to complete thoughts. Defers to deputies for answers."
Summers has also asked several times about the Treasurer's Office's relationship with the Russellville brokerage firm St. Bernard's. He wants to know how the relationship began. Sanson testified that St. Bernard's didn't offer better rates than other brokerages, while Shoffner said there was a family friendship prior to dealings.
Back in September, Summers reminded Shoffner, that she had indicated St. Bernard's offered higher yields than other brokerages. He asked directly for the proof before Shoffner admitted she did not have it
Then, Summers asks if Shoffner is responsible for all treasury transactions. She tells him it's a team decision, not hers alone. Minutes later, Sanson seems to contradict Shoffner's statement, saying she was directed to make decisions solely at Shoffner's discretion, not by consensus.
Summers asks if Shoffner's office has proper internal controls in place, to which she replies "I'm not sure."
Shoffner was first elected State Treasurer in 2006 and won a second term in 2010.
Continuing Coverage:
State Treasurer in Hot Seat at Rescheduled Audit Hearing
She and some of her staff have been testifying this morning about results of an audit earlier this year that targeted investments by the Treasurer's Office.
Shoffner opened her testimony by reading a prepared statement thanking the audit staff, and saying the policy is sound. She noted that the audit covers 30 of 900 bond sales.
She told the panel that her office has hired a new investment manager (Hunter Johnson) and that investment policies have been tightened.
Other highlights from the first two hours of testimony:
Rep. Tim Summers asked Treasurer's Office CFO Autumn Sanson why some bonds in 2009 were sold before maturity. She responded that the bonds were sold before maturity on the advice of brokers saying further that the office did not do an independent analysis. Soon after it was revealed that records showing advice of brokers were not kept and there is no existing record or documentation about it.
KARK 4 Reporter Adam Rodriguez who's covering the hearing, reports via Twitter that: "Shoffner seems a little hazy. Begins several sentences, but trails off and fails to complete thoughts. Defers to deputies for answers."
Summers has also asked several times about the Treasurer's Office's relationship with the Russellville brokerage firm St. Bernard's. He wants to know how the relationship began. Sanson testified that St. Bernard's didn't offer better rates than other brokerages, while Shoffner said there was a family friendship prior to dealings.
Back in September, Summers reminded Shoffner, that she had indicated St. Bernard's offered higher yields than other brokerages. He asked directly for the proof before Shoffner admitted she did not have it
Then, Summers asks if Shoffner is responsible for all treasury transactions. She tells him it's a team decision, not hers alone. Minutes later, Sanson seems to contradict Shoffner's statement, saying she was directed to make decisions solely at Shoffner's discretion, not by consensus.
Summers asks if Shoffner's office has proper internal controls in place, to which she replies "I'm not sure."
Shoffner was first elected State Treasurer in 2006 and won a second term in 2010.
Continuing Coverage:
State Treasurer in Hot Seat at Rescheduled Audit Hearing
