Reep v. Board of Co. Commissioners

No. 80-44 IN THE SUPREME COURT OF THE STATE OF MONTANA

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 quart 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 ) recommend 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 administ 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 Commiss 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 Comm 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 government. 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 cond 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 improvement 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 adm 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 subj 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 .