Reep v. Board of Co. Commissioners ( 1981 )

No. 80-44
IN THE SUPREME COURT OF THE STATE OF MONTANA
1980
LINDA REEP,
Petitioner and Respondent,
BOARD OF COUNTY COMMISSIONERS OF
MISSOULA COUNTY, STATE OF MONTANA
et al.,
Appellants and Respondents.
Appeal from: District Court of the Fourth Judicial District,
In and for the County of Missoula, Montana
Honorable James B. Wheelis, Judge presiding.
Counsel of Record:
For Appellants:
Robert L. Deschamps, 111, County Attorney, Missoula,
Montana
Michael W. Sehestedt, Deputy County Attorney, argued,
Missoula, Montana
For Respondent:
Morrison Law Offices, Missoula, Montana
Daniel Kemmis argued, Missoula, Montana
For Amicus Curiae:
Garrity, Keegan and Brown, Helena, Montana
G. Steven Brown argued, Helena, Montana
-- - ~
Submitted: November 24, 1980
H o n o r a b l e L e o n a r d H . Langen, D i s t r i c t J u d g e , s i t t i n g i n p l a c e of
Mr. J u s t i c e J o h n C. S h e e h y , d e l i v e r e d t h e O p i n i o n of t h e C o u r t .
P e t i t i o n e r , t h e M i s s o u l a County a u d i t o r , b r o u g h t t h i s
a c t i o n s e e k i n g a w r i t of m a n d a t e c o m p e l l i n g r e s p o n d e n t , c o u n t y
commissioners, t o i n c l u d e i n t h e f i n a l county budget funding f o r
a l a r g e r s t a f f f o r t h e a u d i t o r ' s o f f i c e t h a n was p r o p o s e d i n t h e
p r e l i m i n a r y county budget. F o l l o w i n g t h e q u a s h i n g of p e t i t i o n -
e r ' s o r i g i n a l w r i t , a n amended w r i t was f i l e d and t h e c a u s e h e a r d
by t h e c o u r t s i t t i n g w i t h o u t a j u r y i n a t r i a l which l a s t e d f i v e
days. The D i s t r i c t C o u r t h e a r d t e s t i m o n y from 1 3 w i t n e s s e s ,
a m o u n t i n g t o o v e r 4 0 0 p a g e s of t r a n s c r i p t , a d m i t t e d o v e r 3 5 e x h i -
b i t s i n t o e v i d e n c e , and t h e n made f i n d i n g s of f a c t and c o n c l u -
s i o n s of law, t h e r e l e v a n t p o r t i o n s of which a r e now s e t f o r t h
verbatim:
"FINDINGS OF FACT
"2. A m a j o r i t y of t h e c o m m i s s i o n e r s d e t e r m i n e d t h a t
t h e a u d i t o r was c o n d u c t i n g e x a m i n a t i o n s of t h e books
and r e c o r d s o f t h e c o u n t y b r o a d e r i n s c o p e t h a n con-
t e m p l a t e d by t h e s t a t u t e s d e f i n i n g t h e a u d i t o r ' s
duties.
" 3 . A m a j o r i t y of t h e c o m m i s s i o n e r s o b j e c t e d t o cer-
t a i n a u d i t s t e r m e d by them a s 'management' a u d i t s ,
which t h e a u d i t o r d e f i n e d a s ' c o m p l i a n c e ' a u d i t s .
T h e s e a u d i t s i n c l u d e d o p i n i o n s by t h e a u d i t o r or h e r
s t a f f on w h e t h e r c o u n t y p o l i c i e s were i n c o m p l i a n c e
with a p p l i c a b l e s t a t u t e s o r r e g u l a t i o n s , o r whether
t h e s e p o l i c i e s were i n t h e b e s t i n t e r e s t of t h e
c o u n t y i n a f i n a n c i a l s e n s e . A l l o p i n i o n s were d e l i -
vered i n connection with the procurement, investment
o r u s e of c o u n t y f u n d s .
"4. A m a j o r i t y of t h e c o m m i s s i o n e r s a s a m a t t e r of
d e l i b e r a t e p o l i c y budgeted t h e a u d i t o r t o p r e v e n t h e r
f r o m c o n d u c t i n g a u d i t s t h e y deemed o v e r l y b r o a d i n
scope.
"5. A u d i t s of t h e s o r t found i m p r o p e r by t h e com-
m i s s i o n e r s a r e c o n d u c t e d by p r i v a t e a u d i t o r s and
a c c o u n t a n t s i n t h e g e n e r a l and n o r m a l c o u r s e of t h e i r
business. T h e s e a u d i t s of n e c e s s i t y r e q u i r e t h e
e x e r c i s e of judgment and t h e s t a t e m e n t of c o n c l u s i o n s
b r o a c h i n g on t h e r e n d e r i n g of l e g a l o p i n i o n s . These
a u d i t s do n o t i n c l u d e s t u d i e s of t h e management e f f i -
c i e n c y of a d m i n i s t r a t i v e p r a c t i c e s , and e f f i c i e n c y
a u d i t s were n o t c o n d u c t e d by t h e a u d i t o r .
"6. A m a j o r i t y of t h e c o m m i s s i o n e r s d e s i r e d t o l i m i t
t h e a u d i t o r ' s e x a m i n a t i o n s t o b o o k k e e p i n g and a c c o u n t
b a l a n c i n g , and t h e y b u d g e t e d t h e a u d i t o r a c c o r d i n g l y .
"7. The b u d g e t a m o u n t s r e q u e s t e d by t h e a u d i t o r
a t t r i b u t a b l e t o a l l a u d i t s reasonably provides f o r
t h e i r performance.
" 8 . The a u d i t o r was and is now q u a l i f i e d t o c o n d u c t
a u d i t s o f t h e s c o p e and t y p e t o which t h e com-
m i s s i o n e r s h a v e o b j e c t e d , and a n y a u d i t s c u s t o m a r i l y
and u s u a l l y conducted by a C e r t i f i e d P u b l i c
A c c o u n t a n t . A l l t h e d i s p u t e d a u d i t s were d o n e i n a
r e g u l a r manner c o n s i s t e n t w i t h t h e s e s t a n d a r d s .
" 9 . The a u d i t o r h a s n e c e s s a r i l y e x p e n d e d a t t o r n e y s
f e e s and c o s t s i n t h i s s u i t , t h e amount b e i n g n o t y e t
known. "
"CONCLUSIONS OF LAW
." 2.. . 'The n terme d' e xi anmMCAa t i7o- n - 2of 0 9t (h1e) book l uande s a c c odui nst s of
co tain
in
6 4 inc d au t
b r o a d s c o p e c o n d u c t e d i n t h e manner and t o t h e e x t e n t
c o u n t e n a n c e d by g e n e r a l l y a c c e p t e d a c c o u n t i n g and
a u d i t i n g p r i n c i p l e s and m e t h o d s a p p l i c a b l e to a n
independent auditor. I t is w i t h i n t h e d i s c r e t i o n of
t h e a u d i t o r t o d e t e r m i n e t h e s c o p e and e x t e n t of
a u d i t s w i t h i n t h e l i m i t s set by g e n e r a l l y a c c e p t e d
a u d i t i n g a c c o u n t i n g p r i n c i p l e s and m e t h o d s . Under
MCA 7-6-2408 ( 2 ) a u d i t o r s h a v e b r o a d d i s c r e t i o n a r y
powers of i n v e s t i g a t i o n .
" 3 . The term ' f u l l and c o m p l e t e s t a t e m e n t o f t h e
money r e c e i v e d and d i s b u r s e d . . .,
' MCA 7-6-2409 ( 2 ) ,
i s a minimum r e q u i r e m e n t , n o t a l i m i t a t i o n o n t h e
s c o p e o f t h e e x a m i n a t i o n s by t h e a u d i t o r .
"4. The c o m m i s s i o n e r s h a v e a c l e a r l e g a l d u t y to
f u n d t h e c o u n t y a u d i t o r t o c a r r y o n e x a m i n a t i o n s of
b o o k s and r e c o r d s , i n c l u d i n g a u d i t s of t h e s c o p e and
extent objected to.
"5. F a i l u r e t o f u n d t h e s e a u d i t s was a f a i l u r e t o
p e r f o r m a c l e a r l e g a l d u t y and a n a b u s e o f
discretion.
"6. Mandamus l i e s t o compel t h e p e r f o r m a n c e of a
c l e a r l e g a l d u t y and t o c o r r e c t a n a b u s e of
discretion.
"7. The c o m m i s s i o n e r s may e i t h e r a c c e p t t h e
b u d g e t i n g r e q u e s t e d by t h e a u d i t o r f o r t h e a u d i t i n g
f u n c t i o n s t h e y wished to p r e v e n t o r h o l d f u r t h e r
h e a r i n g s and t h e r e a f t e r r e a s o n a b l y p r o v i d e f u n d s t o
a l l o w t h e i r performance.
"8. The a u d i t o r s h o u l d r e c e i v e a t t o r n e y ' s f e e s i n a
r e a s o n a b l e amount and costs " .
L a t e r t h e D i s t r i c t C o u r t made s u p p l e m e n t a l f i n d i n g s of fact
a n d c o n c l u s i o n s o f l a w , t h e r e l e v a n t p o r t i o n s of which are s e t
f o r t h verbatim:
"SUPPLEMENTARY FINDINGS OF FACT
" 1 . A m a j o r i t y of t h e c o m m i s s i o n e r s c a u s e d f u n d s t o
b e s u b t r a c t e d f r o m t h e b u d g e t of t h e a u d i t o r t o l i m i t
h e r a b i l i t y t o c o n d u c t a u d i t s of a n y s c o p e beyond
t h a t o f b o o k k e e p i n g and a c c o u n t b a l a n c i n g . "
"SUPPLEMENTARY CONCLUSIONS OF LAW
"2. An e l e c t e d c o u n t y a u d i t o r is a n a g e n t of t h e
people, having important o f f i c i a l d u t i e s f o r t h e
f a i t h f u l d i s c h a r g e o f which s h e is d i r e c t l y r e s p o n -
s i b l e to t h e people. Under MCA 7 - 6 - 2 4 0 8 ( 2 ) a u d i t o r s
h a v e b r o a d d i s c r e t i o n a r y powers of i n v e s t i g a t i o n . In
p e r f o r m i n g h e r d u t i e s , t h e a u d i t o r must have s u f -
f i c i e n t independence from t h e commissioners t o p e r m i t
h e r t o d e t e r m i n e which o f f i c e s to a u d i t , a t w h a t
t i m e , and w h a t t h e s c o p e of s u c h a u d i t s s h o u l d b e ,
w i t h i n t h e l i m i t s s e t by g e n e r a l l y a c c e p t e d a u d i t i n g
a n d a c c o u n t i n g p r i n c i p l e s and m e t h o d s .
"3. F a i l u r e t o f u n d a u d i t s of s c o p e and e x t e n t
o b j e c t e d t o was a f a i l u r e t o p e r f o r m a c l e a r l e g a l
d u t y and s u c h a n a b u s e o f d i s c r e t i o n as t o amount to
n o e x e r c i s e of d i s c r e t i o n a t a l l .
"4. Although t h e commissioners have d i s c r e t i o n a r y
p o w e r s t o s e t b u d g e t s , and a l t h o u g h t h e y may s e t a
budget l i m i t f o r an e l e c t e d o f f i c i a l below t h a t
r e q u e s t e d by t h e o f f i c i a l , t h e y c a n n o t u s e t h e b u d g e t
t o p r e v e n t a n o t h e r e l e c t e d o f f i c i a l from f u l f i l l i n g a
s t a t u t o r y duty. The c o m m i s s i o n e r s may a d o p t a b u d g e t
w h i c h h a s t h e i n c i d e n t a l e f f e c t of c a u s i n g a b u d g e t e d
o f f i c e t o r e d u c e i t s a c t i v i t y i n some a r e a , e v e n i f
t h a t a c t i v i t y is o n e n e c e s s a r y to a s t a t u t o r y d u t y ;
b u t , t h e c o m m i s s i o n e r s may n o t s i n g l e o u t a n a c t i v i t y
n e c e s s a r y t o a s t a t u t o r y d u t y and p r e c l u d e i t by
budgetary r e s t r i c t i o n ."
I n a c c o r d a n c e w i t h t h e f i n d i n g s o f f a c t and c o n c l u s i o n s o f
l a w t h e D i s t r i c t C o u r t t h e n o r d e r e d t h a t mandamus i s s u e . From
t h a t o r d e r t h e board of county commissioners a p p e a l s .
The p r o p e r s t a n d a r d s t o be m e t b e f o r e i s s u a n c e o f a w r i t
o f mandamus are s e t f o r t h i n C a i n v. D e p a r t m e n t of H e a l t h , e t c .
( 1 9 7 8 ) , 1 7 7 Mont. 448, 582 P.2d 332, 3 3 4 , 3 5 S t . R e p . 1056, 1058:
"A w r i t o f m a n d a t e w i l l i s s u e o n l y w h e r e t h e p e r s o n
s e e k i n g t o i n v o k e it is e n t i t l e d t o h a v e t h e d e f e n -
d a n t p e r f o r m a c l e a r l e g a l d u t y and t h e r e is no
s p e e d y or a d e q u a t e remedy i n t h e o r d i n a r y c o u r s e of
law. S t a t e e x r e l . S w a r t v. C a s n e ( 1 9 7 7 ) , Mon t
, 564 P.2d 9 8 3 , 34 S t . R e p . 347. O r d i n a r i l y mandamus
.
w i l l n o t l i e t o compel t h e p e r f o r m a n c e of a d i s c r e -
t i o n a r y f u n c t i o n . S t a t e ex r e l . B u t t e Youth S e r v i c e
C e n t e r v. Murray ( 1 9 7 6 ) , 1 7 0 Mont. 1 7 1 , 5 5 1 P.2d
1 0 1 7 , 3 3 S t . R e p . 610. However, i f t h e r e h a s b e e n
s u c h a n a b u s e of d i s c r e t i o n as t o amount t o n o e x e r -
c i s e o f d i s c r e t i o n a t a l l , mandamus w i l l l i e t o com-
p e l t h e p r o p e r e x e r c i s e of p o w e r s g r a n t e d . B a r n e s v.
Town of B e l g r a d e ( 1 9 7 4 ) , 1 6 4 Mont. 4 6 7 , 524 P.2d
1112."
I t is c l e a r t h a t t h e c o u n t y c o m m i s s i o n e r s had a c l e a r
l e g a l d u t y t o f u n d t h e o f f i c e of t h e c o u n t y a u d i t o r so t h a t s h e
c o u l d a d e q u a t e l y p e r f o r m h e r d u t i e s a t t h e minimum l e v e l imposed
b y t h e s t a t e l e g i s l a t u r e u n d e r s e c t i o n s 7-6-2407 through
7-6-2412, MCA. T h e r e f o r e w e s h a l l f i r s t a d d r e s s o u r s e l v e s to
t h i s issue.
S e c t i o n 7-6-2407, MCA, r e q u i r e s a c o u n t y a u d i t o r to a u d i t
a n d i n v e s t i g a t e c l a i m s a g a i n s t t h e c o u n t y , and s e c t i o n 7-6-2408,
MCA, a u t h o r i z e s t h e a u d i t o r t o a d m i n i s t e r o a t h or a f f i r m a t i o n and
t o i s s u e p r o c e s s t o compel a t t e n d a n c e of w i t n e s s e s i n o r d e r t o
c a r r y o u t t h e s e d u t i e s w i t h r e s p e c t t o claims. However, t h e
a u d i t o r ' s d u t i e s u n d e r s e c t i o n s 7-6-2407 and 7-6-2408 are not i n
issue i n t h i s lawsuit.
R e s p o n d e n t ' s r i g h t t o mandamus is g r o u n d e d i n t h e
i n t e r p r e t a t i o n t o be g i v e n t o s e c t i o n 7-6-2409, MCA, which p r o v i -
d e s t h a t it is t h e d u t y o f t h e c o u n t y a u d i t o r t o e x a m i n e t h e
b o o k s and a c c o u n t s o f t h e c o u n t y t r e a s u r e r and c e r t a i n o t h e r
d e s i g n a t e d county o f f i c e r s w i t h i n 1 5 days p r i o r t o t h e f i r s t
r e g u l a r s e s s i o n o f t h e b o a r d o f c o u n t y c o m m i s s i o n e r s i n March,
J u n e , S e p t e m b e r , and December o f e a c h y e a r u n l e s s a l o n g e r t i m e
i s g r a n t e d t o t h e a u d i t o r by t h e b o a r d .
S u b s e c t i o n ( 2 ) o f s e c t i o n 7-6-2409 p r o v i d e s t h a t t h e quar-
t e r l y r e p o r t s h a l l c o n t a i n a f u l l and c o m p l e t e s t a t e m e n t o f t h e
money r e c e i v e d and d i s b u r s e d by e a c h of t h e o f f i c e r s s i n c e t h e
l a s t e x a m i n a t i o n and r e p o r t . F o r t h e p u r p o s e of t h i s s e c t i o n t h e
c o u n t y a u d i t o r h a s f r e e access to a l l books and p a p e r s i n e a c h of
the offices.
W e hold t h a t t h e District Court e r r e d i n concluding t h a t
t h e c o u n t y a u d i t o r is r e q u i r e d t o p e r f o r m t h e b r o a d d u t i e s
d e s c r i b e d i n t h e D i s t r i c t C o u r t ' s c o n c l u s i o n s o f law.
The Montana Supreme C o u r t h a s a l r e a d y d e c i d e d t h e o b v i o u s -
- t h e terms " a u d i t " and "examine1' a r e n o t synonymous. An a u d i t is
more e x t e n s i v e t h a n a n e x a m i n a t i o n and a n a u d i t i n c l u d e s a n
examination. J u d i t h B a s i n Co. v . L i v i n g s t o n , e t a l . (1931), 89
Mont. 438, 298 P. 356. Th f a c t t h a t t h e l e g i s l a t u r e c h o s e n o t t o
u s e t h e term " a u d i t " i n s e c t i o n 7-6-2409, MCA, is s i g n i f i c a n t .
W e h o l d t h a t t h e l e g i s l a t u r e i n t e n d e d t h e c o u n t y a u d i t o r to e x a -
m i n e t h e b o o k s and r e p o r t a s t a t e m e n t o f money r e c e i v e d and
- 4 -
disbursed. N o t h i n g more i s r e q u i r e d . A d e t a i l e d a u d i t is n o t
r e q u i r e d t o r e p o r t r e c e i p t s and e x p e n d i t u r e s . The l e g i s l a t u r e
c l e a r l y i n t e n d e d t h e a u d i t o r to p e r f o r m a b o o k k e e p i n g and a c c o u n t
b a l a n c i n g f u n c t i o n u n d e r s e c t i o n 7-6-2409, MCA.
T h i s i n t e r p r e t a t i o n is r e i n f o r c e d by a n e x a m i n a t i o n of t h e
L e g i s l a t i v e A u d i t A c t ( s e c t i o n s 5-13-101 e t seq., MCA) and t h e
R e p o r t s and A u d i t s A c t ( s e c t i o n s 2-7-101 t h r o u g h 2-7-105 and
2-7-501 t h r o u g h 2-7-521, MCA).
The l a n g u a g e o f t h e L e g i s l a t i v e A u d i t A c t l e a v e s n o room
t o d o u b t t h a t a n a u d i t , and n o t a n e x a m i n a t i o n , i s r e q u i r e d u n d e r
that Act. Furthermore, the L e g i s l a t i v e Audit A c t s p e c i f i c a l l y
a u t h o r i z e s t h e l e g i s l a t i v e a u d i t o r to r e p o r t p o s s i b l e p e n a l
v i o l a t i o n s t o t h e a t t o r n e y g e n e r a l , and i n s t a n c e s o f m i s f e a s a n c e ,
m a l f e a s a n c e and n o n f e a s a n c e t o t h e g o v e r n o r . The a u t h o r i t y to
c o n d u c t b r o a d management and c o m p l i a n c e a u d i t s is c l e a r l y
specified.
The R e p o r t s and A u d i t s A c t a l s o i n d i c a t e s t h e c o u n t y
a u d i t o r ' s f u n c t i o n s u n d e r s e c t i o n 7-6-2409, MCA, a r e l i m i t e d to
b o o k k e e p i n g and a c c o u n t b a l a n c i n g d u t i e s . S e c t i o n 2-7-503, MCA,
r e q u i r e s t h e D e p a r t m e n t o f Community A f f a i r s t o a u d i t a l l coun-
ties annually. The term " a u d i t " is u s e d c o n s i s t e n t l y t h r o u g h o u t
the Act. S e c t i o n s 2-7-505 and 2-7-513, MCA, specify that the
a u d i t m u s t be " c o m p r e h e n s i v e n and m u s t i n c l u d e comments and o p i -
nions concerning: (1) b a l a n c e s h e e t s ; ( 2 ) r e s u l t s of o p e r a t i o n s ;
( 3 ) c o m p l i a n c e w i t h s t a t e s t a t u t e s and r e g u l a t i o n s ; ( 4 ) recommen-
d a t i o n s f o r improvement; ( 5 ) t h e adequacy of f i n a n c i a l p r e s e n t a -
t i o n ; and ( 6 ) how p r e v i o u s l y n o t e d d e f i c i e n c i e s h a v e b e e n
addressed.
R e m a i n i n g p r o v i s i o n s o f t h e R e p o r t s and A u d i t s A c t r e q u i r e
t h a t a n e x i t i n t e r v i e w be c o n d u c t e d ( s e c t i o n 2-7-512, MCA), that
a u d i t s be c o n d u c t e d i n a c c o r d a n c e w i t h g e n e r a l l y a c c e p t e d
a c c o u n t i n g p r i n c i p l e s ( s e c t i o n 2-7-505, MCA) , and t h a t c e r t a i n
p r o c e d u r e s be f o l l o w e d i n p r e p a r i n g and p u b l i s h i n g t h e a u d i t
r e p o r t s ( s e c t i o n s 2-7-504, 2-7-506, 2-7-515 and 2-7-521, MCA).
- 5 -
I n s h o r t , the l e g i s l a t u r e has expressly conferred
a u t h o r i t y t o c o n d u c t d e t a i l e d management and c o m p l i a n c e a u d i t s of
c o u n t y g o v e r n m e n t s o n t h e D e p a r t m e n t of Community A f f a i r s .
On t h e o t h e r h a n d , t h e d u t i e s o f t h e c o u n t y a u d i t o r a r e
c o n f i n e d t o b o o k k e e p i n g and a c c o u n t b a l a n c i n g f u n c t i o n s u n d e r
s e c t i o n 7-6-2409, MCA, which p r o v i d e s :
" E x a m i n a t i o n o f C o u n t y -- d A c c o u n t s .
Books a n (1) I t
i s t h e d u t y o r t h e county a u d i t o r to examine t h e
b o o k s and a c c o u n t s o f t h e c o u n t y t r e a s u r e r , t h e
c o u n t y c l e r k and r e c o r d e r , t h e s h e r i f f , t h e c l e r k o f
t h e d i s t r i c t c o u r t , and a l l o t h e r c o u n t y and t o w n s h i p
o f f i c e r s w i t h i n 1 5 d a y s p r i o r to t h e f i r s t r e g u l a r
s e s s i o n o f t h e b o a r d o f c o u n t y c o m m i s s i o n e r s i n March,
J u n e , S e p t e m b e r , and December o f e a c h y e a r u n l e s s a
l o n g e r t i m e is g r a n t e d t o t h e a u d i t o r by t h e b o a r d .
" ( 2 ) The q u a r t e r l y r e p o r t s h a l l c o n t a i n a f u l l and
c o m p l e t e s t a t e m e n t o f t h e m n e y r e c e i v e d and d i s -
b u r s e d by e a c h o f t h e o f f i c e r s s i n c e t h e l a s t exami-
n a t i o n and r e p o r t . F o r t h e p u r p o s e of t h i s s e c t i o n ,
t h e c o u n t y a u d i t o r h a s f r e e access to a l l books and
p a p e r s i n e a c h o f t h e o f f ices ."
The D i s t r i c t C o u r t ' s s u p p l e m e n t a r y c o n c l u s i o n s o f l a w
i n v o k e t h e " s t r i c t a c c o u n t a b i l i t y " p r o v i s i o n o f t h e Montana
C o n s t i t u t i o n t o j u s t i f y a f i n d i n g t h a t a c o u n t y a u d i t o r is
r e q u i r e d t o p e r f o r m b r o a d management and c o m p l i a n c e a u d i t s .
However, t h e r e is no f a c t u a l o r l e g a l b a s i s f o r t h e D i s t r i c t
Court's conclusion.
Art. VIII, S e c t i o n 1 2 , 1 9 7 2 Montana C o n s t i t u t i o n , r e a d s :
"Strict accountability. The l e g i s l a t u r e s h a l l by l a w
i n s u r e strict a c c o u n t a b i l i t y of a l l revenue r e c e i v e d
a n d money s p e n t by t h e s t a t e and c o u n t i e s , c i t i e s ,
t o w n s , and a l l o t h e r l o c a l g o v e r n m e n t a l e n t i t i e s . "
The C o n s t i t u t i o n i n d i c a t e s t h a t t h e s t r i c t a c c o u n t a b i l i t y
f u n c t i o n is n o t s e l f - e x e c u t i n g . The l e g i s l a t u r e is d i r e c t e d t o
i n s u r e s t r i c t a c c o u n t a b i l i t y of a l l p u b l i c funds. The l e g i s l a -
t u r e h a s r e s p o n d e d by p a s s i n g l a w s r e q u i r i n g t h e D e p a r t m e n t of
Community A f f a i r s t o c o n d u c t " c o m p r e h e n s i v e a u d i t s " of c o u n t i e s
a n d a l l l o c a l g o v e r n m e n t e n t i t i e s ( s e c t i o n s 2-7-501 through
2-7-521, MCA). T h i s e x p a n s i v e a u d i t a u t h o r i t y was p a s s e d i n 1 9 7 4
3/7
48
(Laws o f Montana ( 1 9 7 4 ) , Ch. 349-1 and r e c o d i f i e d i n 1 9 7 5 (Laws of
Montana ( W ) Ch. 3 8 0 ) .
,
14 75
A s s t a t e d i n s e c t i o n 2-7-502, MCA:
"The p u r p o s e o f t h e a u d i t o f t h e a f f a i r s of t h e
g o v e r n m e n t a l e n t i t i e s as s e t f o r t h i n t h i s p a r t s h a l l
b e t o i n s u r e c o n s t i t u e n t i n t e r e s t s by d e t e r m i n i n g
t h a t c o m p l i a n c e w i t h a l l a p p r o p r i a t e s t a t u t e s and
r e g u l a t i o n s is a c c o m p l i s h e d , t h a t t h e f i n a n c i a l con-
d i t i o n and o p e r a t i o n o f t h e e n t i t i e s a r e r e a s o n a b l y
c o n d u c t e d and r e p o r t e d , t h a t t h e s t e w a r d s h i p o f s u c h
e n t i t i e s is c o n d u c t e d i n s u c h a manner as to p r e s e r v e
a n d p r o t e c t t h e p u b l i c t r u s t , and t o a c c o m p l i s h , w i t h
economy and e f f i c i e n c y , t h e d u t i e s and r e s p o n -
s i b i l i t i e s of t h e e n t i t i e s i n accordance w i t h t h e
l e g a l r e q u i r e m e n t s imposed and t h e d e s i r e s of t h e
public. "
The l e g i s l a t u r e h a s r e s p o n d e d t o t h e m a n d a t e of A r t . V I I I ,
S e c t i o n 1 2 , 1 9 7 2 Montana C o n s t i t u t i o n , b y e x p a n d i n g t h e p o w e r s o f
t h e D e p a r t m e n t of Community A f f a i r s and n o t t h e c o u n t y a u d i t o r .
W e have s t i l l f u r t h e r grounds f o r o u r h o l d i n g .
T h e r e a r e no p r o f e s s i o n a l q u a l i f i c a t i o n s t h a t m u s t be
s a t i s f i e d t o s e r v e as a c o u n t y a u d i t o r . The o n l y q u a l i f i c a t i o n s
f o r t h i s o f f i c e r a r e t h a t he be of v o t i n g a g e and a r e s i d e n t of
t h e c o u n t y f o r two y e a r s ( s e c t i o n 7-6-2403, MCA). Thus a p e r s o n
w i t h no a c c o u n t i n g o r a u d i t i n g e x p e r i e n c e c a n be a c o u n t y
auditor. The l e g i s l a t u r e c e r t a i n l y c o u l d n o t h a v e i n t e n d e d t h e
c o u n t y a u d i t o r t o p e r f o r m b r o a d management and c o m p l i a n c e a u d i t
f u n c t i o n s u n l e s s t h e l e g i s l a t u r e were w i l l i n g to impose p r o -
f e s s i o n a l q u a l i f i c a t i o n s f o r t h e of £ i c e .
T h i s c o n c l u s i o n is r e i n f o r c e d by t h e f a c t t h a t t h e
l e g i s l a t u r e h a s imposed s t r i c t p r o f e s s i o n a l r e q u i r e m e n t s f o r t h e
p e r s o n s e l e c t e d t o s e r v e as l e g i s l a t i v e a u d i t o r . The l e g i s l a t i v e
a u d i t o r must have a d e g r e e from an a c c r e d i t e d u n i v e r s i t y w i t h a
major i n a c c o u n t i n g o r a s i m i l a r f i e l d . Furthermore the l e g i s l a -
t i v e a u d i t o r m u s t h a v e a t l e a s t two y e a r s e x p e r i e n c e i n g o v e r n -
m e n t a l a c c o u n t i n g and a u d i t i n g ( s e c t i o n 5-13-302, MCA) .
F u r t h e r m o r e t h e c o u n t y a u d i t o r h a s no a u t h o r i t y u n d e r
Montana l a w t o i n c r e a s e t h e d u t i e s of h e r o f f i c e beyond t h a t
described i n the statute. Only t h e board of county commissioners
may d o t h i s . ( S e c t i o n 7-6-2412, MCA, provides t h a t t h e county
a u d i t o r s h a l l also p e r f o r m s u c h o t h e r d u t i e s , c l e r i c a l or
o t h e r w i s e , as h e may be d i r e c t e d t o p e r f o r m by t h e c o u n t y
commissioners. )
W e h o l d t h a t t h e l e g a l d u t y of t h e a p p e l l a n t was to a d e -
q u a t e l y f u n d t h e c o u n t y a u d i t o r ' s o f f ice so t h a t s h e c a n p e r f o r m
t h e minimum d u t i e s r e q u i r e d by l a w . The b o a r d o f c o u n t y
c o m m i s s i o n e r s , i n t h e i r d i s c r e t i o n , may e n l a r g e t h e d u t i e s of t h e
c o u n t y a u d i t o r ( s e c t i o n 7-6-2412, MCA), and i f t h i s s h o u l d o c c u r ,
i t would f o l l o w t h a t t h e b o a r d s h o u l d p r o v i d e a d d i t i o n a l f u n d i n g .
T h i s C o u r t h a s t h e d u t y t o s c r u t i n i z e t h e manner i n which
t h e d e c i s i o n o f t h e D i s t r i c t C o u r t was made and t o d e t e r m i n e i f
t h e judge a c t e d a r b i t r a r i l y . W e hold t h a t t h e District Court
e r r e d i n i t s c o n c l u s i o n s o f law. Likewise t h e c o u r t e r r e d i n i t s
f i n d i n g s o f f a c t i n s o f a r as t h e same a r e i n c o n s i s t e n t w i t h t h e
l a w as e x p r e s s e d i n t h i s o p i n i o n .
W e h o l d t h a t o u r r u l i n g w i t h r e s p e c t t o t h e minimum l e v e l
d u t i e s o f t h e c o u n t y a u d i t o r s h o u l d be s u f f i c i e n t t o c a u s e
p e t i t i o n e r ' s p e t i t i o n f o r w r i t of m a n d a t e t o be d i s m i s s e d .
F i n d i n g of f a c t N o . 6 would i n d i c a t e t h a t t h e c o u n t y c o m m i s -
s i o n e r s , i n f a c t , have budgeted s u f f i c i e n t funds f o r t h e county
a u d i t o r to perform h e r d u t i e s i n accordance with t h i s opinion.
However, t h i s C o u r t c a n n o t make a f i n d i n g o f f a c t n o r c a n it
d i r e c t t h e D i s t r i c t C o u r t t o make s u c h a f i n d i n g . Its j u r i s d i c -
t i o n is s t r i c t l y a p p e l l a t e .
T h i s c a u s e is remanded t o t h e D i s t r i c t C o u r t t o make amended
f i n d i n g s o f f a c t and c o n c l u s i o n s o f lan
r / 1a c c o r d a n c e Pt h
wi this
opinion.
Hon. ~ & ~ n a H . d Langen, D i s t r i c t
r
J u d g e , s i t t i n g i n p l a c e of M r . J u s -
t i c e J o h n C. Sheehy.
W concur:
e
Chief J u s t i c e
1L
--___,,_-______,___-,
Justices
T h i s c a u s e was s u b m i t t e d p r i o r t o J a n u a r y 5 , 1 9 8 1 .
Mr. J u s t i c e Gene B. Daly d i s s e n t i n g :
I must r e s p e c t f u l l y d i s s e n t . F i r s t of a l l , f o r c l a r i -
f i c a t i o n p u r p o s e s , I f i n d i t n e c e s s a r y t o comment on t h e
paragraph i n t h e majority opinion concerning an a u d i t o r ' s
professional qualifications. This paragraph i s simply n o t
i n v o l v e d i n t h i s case, h a s no p l a c e i n t h e o p i n i o n , and
d e m o n s t r a t e s no more t h a n a d e s p e r a t e a t t e m p t by t h e m a j o r i t y
t o j u s t i f y i t s h o l d i n g i n t h i s m a t t e r , which i s t r u l y a g a i n s t
the facts. Q u i t e f r a n k l y , o u r l o c a l governmental s e t u p i s
r e p l e t e w i t h o f f i c e s of t h i s k i n d which, by s t a t u t e , do n o t
r e q u i r e a d e g r e e ; however, l o c a l governments a r e f u r n i s h e d
with necessary funds t o provide p r o f e s s i o n a l s t a f f s .
I a g r e e t h a t t h e p r o p e r s t a n d a r d of r e v i e w i n a n a p p e a l
of a mandamus a c t i o n was e s t a b l i s h e d i n Cain v. Dept. of
Health, e t c . ( 1 9 7 8 ) , 177 Mont. 448, 582 P.2d 332, 35 St.Rep.
1056, a s s e t f o r t h i n t h e m a j o r i t y o p i n i o n . This Court has
i n d i c a t e d t h a t a r b i t r a r y o r c a p r i c i o u s a c t i o n by a n adminis-
t r a t i v e board i s a n a b u s e of d i s c r e t i o n . S t a t e ex rel.
S a n d e r s v . H i l l (P.E.R.S.) ( 1 9 6 3 ) , 1 4 1 Mont. 558, 381 P.2d
475.
I n m o p i n i o n , a p p e l l a n t s ' argument i s t e n u o u s a t b e s t .
y
They a r g u e t h a t t h e t r i a l c o u r t abused i t s d i s c r e t i o n when i t
d e t e r m i n e d t h a t t h e County Commissioners abused t h e i r d i s c r e -
t i o n and i n f a i l i n g t o a d e q u a t e l y fund t h e County A u d i t o r ' s
office. A s p r o v i d e d by s t a t u t e , b o t h p a r t i e s t o t h i s a c t i o n
have broad d i s c r e t i o n a r y powers. The Board of County Commis-
s i o n e r s h a s d i s c r e t i o n i n b u d g e t i n g c o u n t y o f f i c e s and s u p e r -
v i s i n g t h e i r c o n d u c t , s e c t i o n s 7-4-2110, 7-6-2314 ( e ), MCA.
The County A u d i t o r h a s broad d i s c r e t i o n a r y powers of i n v e s t i -
a
g a t i o n , s e c t i o n 7-6-2408(Y), MCA. This Court's task, therefore,
i s twofold: f i r s t , t o d e t e r m i n e i f t h e D i s t r i c t C o u r t abused
i t s d i s c r e t i o n i n i s s u i n g a w r i t of mandamus; and second, t o
d e t e r m i n e i f a p p e l l a n t s abused t h e i r d i s c r e t i o n i n e s t a b l i s h -
i n g t h e budget f o r t h e A u d i t o r ' s o f f i c e .
I n P o r t e r v . P o r t e r ( 1 9 7 0 ) , 155 Mont. 451, 457, 473 P.2d
538, 541, t h i s C o u r t s t a t e d :
". . . a reviewing c o u r t i s never j u s t i f i e d i n
s u b s t i t u t i n g i t s d i s c r e t i o n f o r t h a t of a t r i a l
court. I n d e t e r m i n i n g whether a t r i a l c o u r t
abused i t s d i s c r e t i o n , t h e q u e s t i o n i s n o t whe-
t h e r t h e reviewing c o u r t agrees with t h e t r i a l
court, but, r a t h e r did the t r i a l court i n the
e x e r c i s e of i t s d i s c r e t i o n a c t a r b i t r a r i l y
w i t h o u t employment o f c o n s c i e n t i o u s judgment
o r exceed t h e bounds o f r e a s o n , i n view of a l l
t h e circumstances, ignoring recognized p r i n c i -
ples resulting i n substantial injustice."
A l s o , i n G r a n t v. Michaels ( 1 9 3 3 ) , 94 Mont. 452, 23 P.2d 266,
269, and T a y l o r v . County Commissioners ( 1 9 5 4 ) , 128 Mont. 102,
111, 270 P.2d 994, t h i s C o u r t s a i d : ". .. t h e phrase 'abuse
of d i s c r e t i o n ' i m p l i e s , n o t merely a n e r r o r i n judgment, but
p e r v e r s i t y o f w i l l , p r e j u d i c e , p a s s i o n , o r moral d e l i n q u e n c y
. . ." I n r e v i e w i n g t h e d e c i s i o n o f t h e lower c o u r t , i t i s
n o t o u r f u n c t i o n t o e n t e r t h e b a t t l e of s e m a n t i c s t o d e t e r m i n e
t h e d u t i e s of t h e Commission and t h e A u d i t o r , o r o f t h e D e -
p a r t m e n t o f Community A f f a i r s ; r a t h e r , w e must d e c i d e i f t h e
t r i a l c o u r t acted reasonably i n a r r i v i n g a t a conscientious
decision.
I n 1 4 Am.Jur. C o u n t i e s , 5 33 a t 205, t h e r u l e i s s t a t e d
a s follows:
"The r e l a t i o n s h i p of t h e c o u r t s t o t h e o t h e r
d e p a r t m e n t s of government i s such t h a t t h e y
c a n n o t perform e x e c u t i v e d u t i e s o r i n t e r f e r e
w i t h t h e performance of l e g i s l a t i v e d u t i e s .
They are n o t endowed w i t h v i s i t o r i a l powers t o
approve o r d i s a p p r o v e t h e manner i n which c o u n t y
commissioners e x e r c i s e t h e powers c o n f e r r e d
upon them. They c a n n o t r e a c h o r c o n t r o l t h e
commissioners i n t h i s r e g a r d u n l e s s i n some
manner t h e l a t t e r have b r o u g h t t h e m s e l v e s
w i t h i n j u d i c i a l cognizance. So l o n g a s t h e
commissioners a c t h o n e s t l y and i n good f a i t h
and keep w i t h i n t h e l i m i t s of t h e powers g i v e n
them by t h e law, t h e c o u r t s have no a u t h o r i t y
t o i n t e r f e r e with o r control t h e i r legitimate
discretion."
I n h e r p e t i t i o n , r e s p o n d e n t a r g u e s t h a t t h e Commissioners
have a l e g a l d u t y t o make a v a i l a b l e t o t h e County A u d i t o r b o t h
t h e t i m e and t h e s t a f f n e c e s s a r y t o p e r f o r m t h e d u t i e s of ex-
a m i n a t i o n and a c c o u n t i n g of c o u n t y books; and, by c u t t i n g t h e
~ u d i t o r ' sb u d g e t , s h e i s p r e v e n t e d from a d e q u a t e l y p e r f o r m i n g
her s t a t u t o r i l y created duties. T h e r e f o r e , t h e Commissioners
d i d n o t a c t w i t h i n t h e l i m i t s of t h e power g i v e n them by law,
and it i s w i t h i n t h e a u t h o r i t y o f t h e D i s t r i c t C o u r t t o i n t e r -
vene and c o n t r o l t h e d i s c r e t i o n o f t h e Commissioners. The
D i s t r i c t C o u r t d o e s have s u c h a u t h o r i t y ; a n d , t h u s , t h i s c a s e
was p r o p e r l y b r o u g h t .
A s s e t f o r t h i n t h e majority opinion, t h e D i s t r i c t Court
made e x t e n d e d f i n d i n g s of f a c t and c o n c l u s i o n s of law, and i t
i s not t h i s Court's function t o substitute its discretion f o r
t h a t of t h e t r i a l c o u r t . W have a d u t y t o s c r u t i n i z e t h e
e
manner i n which t h e d e c i s i o n of t h e t r i a l c o u r t was made and
d e t e r m i n e i f t h e judge a c t e d a r b i t r a r i l y . Here, i n a t r i a l
which l a s t e d f i v e d a y s , t h e D i s t r i c t C o u r t h e a r d t e s t i m o n y
from t h i r t e e n w i t n e s s e s amounting t o o v e r 4 0 0 pages of t r a n -
s c r i p t and a d m i t t e d o v e r t h i r t y - f i v e e x h i b i t s i n t o e v i d e n c e .
The c o u r t t h e n a r r i v e d a t a c o n c l u s i o n t h a t t h e County Com-
m i s s i o n e r s abused t h e i r d i s c r e t i o n when t h e y f a i l e d t o perform
a l e g a l d u t y of f u n d i n g t h e County A u d i t o r e n a b l i n g h e r t o
c a r r y on e x a m i n a t i o n s of books and r e c o r d s , i n c l u d i n g a u d i t s ,
i n accordance w i t h her s t a t u t o r y d u t i e s . It i s very c l e a r
t h a t t h e t r i a l c o u r t d i d n o t abuse i t s d i s c r e t i o n i n concluding
t h e Commission's b u d g e t a r y d e c i s i o n was p r e j u d i c i a l , e x c e e d i n g
t h e bounds of r e a s o n , and w a s such a n a b u s e of d i s c r e t i o n a s
t o amount t o no d i s c r e t i o n a t a l l .
The t r i a l c o u r t ' s mandate i n no way u s u r p e d o r i n t e r f e r e d
w i t h t h e Commission's b u d g e t a r y power. The c o u r t gave t h e
Commission a n o p t i o n t o e i t h e r a c c e p t t h e A u d i t o r ' s r e q u e s t e d
b u d g e t f o r a u d i t i n g f u n c t i o n s o r t o h o l d f u r t h e r h e a r i n g s and
t h e r e a f t e r r e a s o n a b l y p r o v i d e f u n d s t o a l l o w t h e i r performance.
I n m opinion, t h e t r i a l c o u r t d i d n o t abuse i t s d i s c r e -
y
tion. T h e r e f o r e , i t must n e x t be d e t e r m i n e d i f t h e County
Commission's f a i l u r e t o fund t h e A u d i t o r ' s o f f i c e , a s r e q u e s t e d ,
was a f a i l u r e t o perform a c l e a r l e g a l d u t y and s u c h a n a b u s e
of d i s c r e t i o n a s t o amount t o no e x e r c i s e of d i s c r e t i o n a t a l l .
I n d e t e r m i n i n g i f t h e Commissioners were under a l e g a l
d u t y t o a c t , t h e f o l l o w i n g s t a t u t e s must be c o n s i d e r e d :
"7-6-2315. C o n s i d e r a t i o n of t a b u l a t i o n by c o u n t y
commissioners -- p r e p a r a t i o n of p r e l i m i n a r y bud-
get. (1) The t a b u l a t i o n s h a l l b e s u b m i t t e d t o
t h e c o u n t y commissioners by t h e c o u n t y c l e r k and
r e c o r d e r on o r b e f o r e t h e f i r s t Monday of J u l y .
" ( 2 ) Upon r e c e i p t t h e r e o f , t h e board of c o u n t y
commissioners s h a l l immediately c o n s i d e r t h e
b u d g e t i n d e t a i l and s h a l l , on o r b e f o r e t h e
--
second Monday of J u l y , make any r e v i s i o n s , reduc-
t i o n s , a d d i t i o n s , o r changes t h a t - t h e y c o n s i d e r
advisable. The t a b u l a t i o n , w i t h any r e v i s i o n s ,
reductions, a d d i t i o n s , o r changes, i s t h e pre-
l i m i n a r y budget f o r t h e f i s c a l y e a r which it
i s intended t o cover.
" ( 3 ) Upon c o m p l e t i o n of t h e b u d g e t t h e c o u n t y
c l e r k s h a l l immediately t r a n s m i t o n e copy of i t
t o t h e d e p a r t m e n t of community a f f a i r s and one
copy t o t h e d e p a r t m e n t of r e v e n u e . "
"7-4-2110. Supervision of c o u n t y and o t h e r
officers. The board o f c o u n t y commissioners h a s
j u r i s d i c t i o n and power, under s u c h l i m i t a t i o n s
and r e s t r i c t i o n s a s a r e p r e s c r i b e d by law, t o :
" ( 1 ) s u p e r v i s e t h e o f f i c i a l c o n d u c t of a l l c o u n t y
o f f i c e r s and o f f i c e r s of a l l d i s t r i c t s and o t h e r
s u b d i v i s i o n s of t h e c o u n t y c h a r g e d w i t h assess-
i n g , c o l l e c t i n g , s a f e k e e p i n g , management, o r
d i s b u r s e m e n t of t h e p u b l i c r e v e n u e s ;
" ( 2 ) see t h a t t h e y f a i t h f u l l y perform t h e i r
duties;
" ( 3 ) d i r e c t p r o s e c u t i o n s f o r d e l i n q u e n c i e s ; and
" ( 4 ) when n e c e s s a r y , r e q u i r e them t o renew t h e i r
o f f i c i a l bonds, make r e p o r t s , and p r e s e n t t h e i r
books and a c c o u n t s f o r i n s p e c t i o n . "
It is clear that the above statutes impose a duty upon
the Commissioners to formulate a budget in such a manner as
to enable county officers to faithfully perform their jobs.
Although discretionary the duty may be, it nevertheless is a
duty .
A case factually similar to the one at hand was decided
in the State of Washington and has been given recent accord.
State ex re1 Yeargin v. Maschke (1916), 90 Wash. 249, 155 P.
1064; accord, Leonard v. Civil Service Commission (1980), 25
Wash.App. 691, 611 P.2d 1290; State v. Pettitt (1980), 93
Wash.2d 288, 609 P.2d !&
+ ; Murphy v. Grand County (1954), 1
1364
Utah2d 412, 268 P.2d 677. In Yeargin the court stated:
". ..
The general rule, of course, is that the
discretionary power of the board of county com-
missioners is not subject to review by the court.
But this is not a universal rule. If the action
of the board of county commissioners is arbitrary
or capricious, or if its action is prompted b~
wrong motives, there is not only an abuse of
discretion, but in contemplation of law there has
been no exercise of discretionary power. If an
honest discretion, as demanded by the law, has
not been exercised, the result is to substitute
arbitrary action for such discretion. If a
tribunal such as the board of county commis-
sioners acts arbitrarily, or refuses to exercise
its discretion, the law will by mandamus require
it to exercise its discretionary power. [Cita-
tions omitted.]
"In [State ex rel. Brown v. Board of Dental Ex.,
38 Wash. 325, 80 P. 5441, after stating the
general rule that the discretionary power of
such tribunal is not subject to review by the
court, it is said:
"'But, notwithstanding this, it is equally well
established that courts will compel by mandamus
the honest performance of official duty, and if,
under pretense of exercising discretion, the
power is exercised with manifest injustice or
is grossly abused, or duty is avoided, the
courts will grant relief. The action of the
court must, in reality, be based upon the as-
sumption that the inferior tribunal has refused
to exercise the discretion with which it is
clothed; because, if it acts arbitrarily or
fraudulently, or through unworthy or selfish
motives, - conspires against the rights -
or of
i n d i v i d u a l s , under t h e l a w , and t h e r e f o r e a g a i n s t
t h e law i t s e l. f , i t h a s n o t s t r i c t l y , a s i s £ r e -
q u e n t l y s a i d , "abused i t s d i s c r e t i o n n - - a term
which i s r e s p o n s i b l e f o r some c o n f u s i o n of i d e a s
on t h i s s u b j e c t - - b u t i n c o n t e m p l a t i o n of law,
it has not exercised i t s d i s c r e t i o n a t a l l , but
h a s s o u g h t t o s u b s t i t u t e a r b i t r a r y and f r a u d u -
l e n t d i s p o s i t i o n and d e t e r m i n a t i o n of t h e ques-
t i o n s u b m i t t e d f o r t h e h o n e s t d i s c r e t i o n demanded
- th -
by -e law. I n such c a s e s t h e law w i l l , by man-
damus, compel t h e t r i b u n a l t o a c t h o n e s t l y and
f a i r l y , o r , i n o t h e r words, t o e x e r c i s e i t s d i s -
c r e t i o n ; and, when t h i s d i s t i n c t i o n i s k e p t i n
mind, t h e seeming d i f f i c u l t i e s which have s u r -
rounded t h i s q u e s t i o n , and which have c a u s e d s o
much d i s c u s s i o n , d i s a p p e a r . ' " 155 P . a t 1065.
The r e c o r d h e r e i s r e p l e t e w i t h e v i d e n c e t h a t t h e b u d g e t
c u t s were m o t i v a t e d by p u n i t i v e r e t a l i a t i o n , r a t h e r t h a n by
bureaucratic efficiency. The e l e c t e d a u d i t o r who preceded
Linda Reep i n o f f i c e t e s t i f i e d t h a t t h e e x a m i n a t i o n s conducted
by h e r o f f i c e r e v e a l e d f a c t s a b o u t d a t a p r o c e s s i n g t h a t w e r e
p o t e n t i a l l y e m b a r r a s s i n g t o some segments of c o u n t y govern-
ment. During t h e b u d g e t d i s c u s s i o n s conducted i n t h e summer
of 1978, one of t h e County Commissioners t o l d t h e A u d i t o r and
h e r Chief Deputy (Linda Reep) t h a t he had h e a r d c o m p l a i n t s
from some d e p a r t m e n t s a b o u t t h e s e a u d i t s . The Commissioner
t o l d them t h a t h e wanted them t o "back o f f , " l e a v i n g them w i t h
t h e c l e a r impression t h a t i f they d i d n o t reduce t h e scope
of t h e i r a u d i t s , t h e i r b u d g e t would s u f f e r t h e n e x t y e a r .
L a t e i n 1978 o r e a r l y i n 1979, t h e A u d i t o r ' s o f f i c e con-
d u c t e d a n e x a m i n a t i o n of t h e c o u n t y ' s r u r a l s p e c i a l improve-
ment d i s t r i c t program which found s e v e r a l s i g n i f i c a n t s h o r t -
comings i n t h e f i n a n c i a l a c c o u n t a b i l i t y of t h e program. This
a u d i t r e p o r t made a t l e a s t one Commissioner "very angry," as
a n o t h e r Commissioner t e s t i f i e d t h a t s h e b e l i e v e d h e s a i d t h a t
" i t would be b e t t e r " i f t h e employee who p r e p a r e d t h e a u d i t
r e p o r t " w a s n ' t on t h e c o u n t y p a y r o l l . "
S h o r t l y a f t e r t h i s a u d i t r e p o r t was r e l e a s e d , t h e ad-
m i n i s t r a t i v e a s s i s t a n t t o t h e County Commissioners went t o
~ i n d a eep's o f f i c e t o question her about t h e a u d i t .
R According
t o Reep's testimony, a s t h e a d m i n i s t r a t i v e a s s i s t a n t l e f t h e r
o f f i c e he s a i d he had j u s t come t o warn h e r t h a t " t h e b u f f a l o
were coming b e f o r e I h e a r d t h e i r f o o t s t e p s . " In the context
of t h e c o n v e r s a t i o n , t h e A u d i t o r i n f e r r e d t h a t " I was g o i n g t o
be h a v i n g problems down t h e l i n e when b u d g e t t i m e came."
When t h e t i m e came f o r t h e Commissioners t o t a k e a c t i o n
on t h e b u d g e t r e q u e s t , one Commissioner suggested t h a t t h e
A u d i t o r ' s s t a f f be reduced t o two f u l l t i m e employees. The
Commissioners d i d n o t v o t e t o c u t t h e A u d i t o r ' s s t a f f a t t h a t
t i m e , b u t a t t h e n e x t b u d g e t meeting t h e y v o t e d t o c u t two
f u l l t i m e employees from t h e A u d i t o r ' s b u d g e t .
Another Commissioner t e s t i f i e d t h a t i n t h e p r o c e s s of
making t h e s e c u t s , a f e l l o w Commissioner " s a i d something t o
t h e e f f e c t t h a t i f s h e [Linda Reep] had t i m e t o do t h e s e
p o l i t i c a l h a t c h e t jobs t h a t maybe s h e d i d n ' t need t h e amount
of h e l p s h e had." T h a t same Commissioner t e s t i f i e d t h a t he
s a i d a t t h e t i m e , "Well, one t h i n g a b o u t i t . . .at least
s h e ' s n o t g o i n g t o have s o much t i m e t o h a s s l e p e o p l e . "
F o l l o w i n g t h i s v o t e , t h e Commissioners s e n t t h e A u d i t o r
a w r i t t e n d i r e c t i v e t o r e d u c e s t a f f by two f u l l t i m e employees,
e f f e c t i v e w i t h t h e b e g i n n i n g of t h e f o l l o w i n g pay p e r i o d . The
A u d i t o r w a s t o n o t i f y t h e p e o p l e b e i n g t e r m i n a t e d w i t h i n one
day of t h e r e c e i p t o f t h e d i r e c t i v e . I n sending t h i s d i r e c t i v e ,
t h e Commissioners " d e s i r e d immediate a c t i o n . "
S h o r t l y a f t e r t h e A u d i t o r ' s v i s i t w i t h t h e County A t t o r -
ney, t h e l a t t e r ' s o f f i c e informed t h e Commissioners t h a t , i n
t h e e v e n t of l i t i g a t i o n , t h e c o u r t would p r o b a b l y r e q u i r e t h e
Commissioners t o p r o v i d e t h e A u d i t o r w i t h a d e p u t y . The Com-
m i s s i o n e r s t h e r e u p o n informed t h e A u d i t o r on J u l y 1 6 , 1979,
t h a t t h e p o s i t i o n of d e p u t y a u d i t o r would be r e s t o r e d b u t
t h a t a d d i t i o n a l d u t i e s m i g h t be a s s i g n e d t o t h e A u d i t o r ' s o f -
fice. The n e x t day, t h e Commissioners d i r e c t e d t h e A u d i t o r
t o assume complete r e s p o n s i b i l i t y f o r t h e c o u n t y p a y r o l l
system, e f f e c t i v e August 5, 1979.
Approximately $15,000 was budgeted f o r i n d e p e n d e n t a u d i t
s e r v i c e s i n t h e event t h a t t h e Auditor could not perform her
d u t i e s with t h e s t a f f provided. T h a t money was budgeted i n
t h e g e n e r a l governmental a c c o u n t , which h a s always been sub-
j e c t t o t h e c o n t r o l of t h e Commissioners and n e v e r s u b j e c t t o
t h e c o n t r o l of t h e A u d i t o r .
Based on t h e f o r e g o i n g , I b e l i e v e i t i s e v i d e n t t h a t t h e
b u d g e t a r y p r o c e s s was v i n d i c t i v e i n n a t u r e . It is t h i s Court's
d u t y t o f i n d t h a t o f f i c i a l government a c t i o n prompted by t h e
wrong m o t i v e s i s such a n a b u s e of d i s c r e t i o n a s t o amount t o
no d i s c r e t i o n a t a l l , and, t h e r e f o r e , mandamus w i l l l i e t o
compel t h e p r o p e r e x e r c i s e of powers g r a n t e d . More i m p o r t a n t l y ,
government o f f i c i a l s s h o u l d be p r e c l u d e d from a c t i n g t h r o u g h
s e l f i s h motives o r conspiring a g a i n s t t h e r i g h t s of i n d i v i d u a l s ,
under t h e l a w , and, t h e r e f o r e , a g a i n s t t h e law i t s e l f . These
a r e t h e v e r y t y p e s of a c t i o n s t o which t h e t e r m " a b u s e of d i s -
c r e t i o n " i s d i r e c t e d and, t h u s , must be t h w a r t e d a t t h e i r
source, t h e decisionmakers.
I would a f f i r m t h e judgment of t h e D i s t r i c t C o u r t .