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PSC rated ‘good’ by audit, releases annual report

JEFFERSON CITY, Mo. – State Auditor Nicole Galloway released an audit of the Public Service Commission (PSC) on Thursday, giving the commission an overall rating of “good.” However, the audit showed “significant weaknesses” in the Manufactured Housing and Modular Units Program.

“Many Missourians know the Public Service Commission is charged with regulating utility rates and monitoring utilities services, but the commission is also tasked with ensuring manufactured and modular homes comply with state and federal laws,” Auditor Galloway said. “Our audit found the commission must increase oversight to ensure the program runs efficiently and, above all, to see that these homes are safe and meet inspection standards.”

The audit found that, after home inspections, the Manufactured Housing and Modular Units Program failed to ensure housing deficiencies were corrected in a timely manner or, in some cases, failed to ensure the deficiencies were addressed at all. This assessment included deficiencies identified in response to consumer complaints.

Commissioners also were unaware that a former program director had suspended collection of inspection fees for each new manufactured home, resulting in lost revenue over seven years. For the period of July 2013 to June 2015 alone, the commission lost approximately $113,000 in revenues by failing to collect the fees.

Hall
Hall

“I am pleased Auditor Galloway rated the overall performance of the Missouri Public Service Commission as ‘Good,’ indicating it is ‘well-managed,’” said PSC Chairman Daniel Hall. “Regarding the specific concerns she raised about the manufactured housing unit and closed meeting record-keeping, we appreciate the constructive analysis of our operations and have taken specific measures to address those concerns.”

Hall became chairman in August 2015.

Additionally, the audit revealed that minutes for closed session meetings of the PSC failed to include required information under the Missouri Sunshine Law. The minutes lacked details regarding discussions and votes of commissioners in attendance.

The complete audit, which provided an overall performance rating of “good” for the PSC is online here.

The audit was released the day after the PSC revealed at their regularly scheduled agenda meeting that their 2015 annual report had been sent to the Governor’s Office.

The PSC’s Fiscal Year 2016 budget was $17,657,820 with 216 full-time employees. The budget subtotal for the Housing Department was $736,180.

The report, which can be viewed here, lays out major rate cases, complaints and other regulatory activity of the commission.