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Silver for Treasurer

by DAVID COLE/dcole@cdapress.com
| August 13, 2014 9:00 PM

COEUR d'ALENE - Deborah Silver, a Democratic Party candidate for Idaho Treasurer, promises no limousines, no gas cards and no $20 million cover-ups.

Silver, of Twin Falls, decided to get into the race after reading newspaper reports about incumbent Republican Idaho Treasurer Ron Crane reportedly losing approximately $20 million of taxpayer money.

She pointed to a 2013 legislative audit report that noted Crane overrode internal controls - in place to contain financial risks - and inappropriately transferred investments, resulting in the loss of state funds.

"The audit report just made my head explode," Silver told The Press in an interview Monday. She is campaigning in North Idaho.

"For accountants, there are things in there that you don't like to ever hear," Silver said. "'Management override of controls' - it's huge, (it) means the boss did it."

She said since nobody challenged Crane, a four-term treasurer, she decided to throw her hat into the ring.

"This is absolutely newsworthy, whether I'm running or not, that we have audit reports saying there are 'material' problems in the treasurer's office," Silver said. "That's not a (political) party thing, it's a taxpayer thing."

The state's "Idle pool" - an internal investment pool consisting mostly of state general and dedicated funds that don't need to be spent immediately - was unnecessarily exposed to risk and realized losses of $10.2 million in fiscal year 2013 when mortgage-backed securities were liquidated, according to the audit report by April Renfro, manager of the Legislature's audits division and a CPA.

There are more assets held in the same way, so the losses could mount, if they were sold now.

"We recommend that the (treasurer's) office strengthen processes to reduce the risk of management override of controls," Renfro wrote. "This could include the addition of an independent oversight function in the form of an investment board and financial consultants with specific expertise related to investment pools and activities."

Silver has been a certified public accountant since 1982, and is currently a partner with her husband, LeRoy Hayes, at the Twin Falls firm Hayes and Silver CPAs. A graduate of Boise State University, she also taught accounting at the College of Southern Idaho from 1982 to 1985.

Silver, 58, also is the Twin Falls County chair of the Democratic Party's state central committee.

If elected, she said a major review of the system is needed to make sure the treasurer's office complies with auditors' recommendations.

"Let's make sure that we have a system that works to keep the financials accurate," Silver said.

She also criticized Crane for legislative auditor findings that he spent nearly $10,000 on limousine rides while on trips to New York City, and for spending nearly $8,000 on gas using a state credit card to pay for his commute from Nampa to Boise for work in his private vehicle.

She said Crane should pay for the gas that gets him to and from work each day, like almost everyone else. And he shouldn't use limousine services when he is in New York handling state business.

The state treasurer operates as the chief financial officer and banker of money collected by Idaho. The office manages a portfolio of more than $2.7 billion.

Crane has been in office 16 years.

"That's enough time, we need to fire him," Silver said.

When she's not being an accountant, Silver likes to ballroom dance and fly-fish with her husband. Silver and Hayes have two grown children.