By SUZANNE DOWNING
April 25, 2026. – A new legislative audit of the state, which includes the Alaska Department of Revenue, has found not even a hint of wrongdoing in investment decisions made under former Revenue Commissioner Adam Crum, concluding that he acted within his legal authority and without conflicts of interest. He did investments with the best interests of the state in mind and the state’s sideboards give the commissioner broad leeway to make such decisions.
According to the audit, which was prompted by leaders of Senate Finance Committee, Crum had clear statutory authority to pursue the investment strategies he implemented while overseeing approximately $135 billion in state assets. The review found no evidence of self-dealing, no conflicts of interest, and no new concerns.
The audit document is over 600 pages (linked below), covers all aspects of the state, and the agency buried the portion about the investments by Revenue deep within; everyday people would not be able to find this document or the part about the Department of Revenue’s investments of state “rainy day funds.” The gist is that there is no “there” there.
In fact, the portion of the document that is about Crum takes up only about two pages of the entire report which has a multitude of topics that relate to the committee’s oversight duties.
“This report summarizes our review of the State of Alaska’s basic financial statements and the State’s compliance with federal laws and regulations in the administration of approximately $5.9 billion of federal financial assistance programs. The audit was conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, issued by the Comptroller General of the United States. It also complies with the federal Single Audit Act Amendments of 1996 and the related United States Office of Management and Budget Uniform Guidance. The report contains opinions on the basic financial statements of the State of Alaska for FY 25, findings and recommendations on financial and compliance matters, auditor’s reports on internal controls and compliance, the Schedule of Expenditures of Federal Awards, and the Summary Schedule of Prior Audit Findings,” the report says in its explanation of the work found in the 600+ pages.
The report contains 85 findings, of which 32 are unresolved issues from the prior year. However, when it comes to Crum’s investment decisions, there are no key words like “deficiencies” or “findings.” It’s a nothingburger.
The report aligns with an earlier independent legal review conducted by the law firm WilmerHale, which reached similar conclusions about the Revenue Department’s investment actions during Crum’s tenure. That study was enacted at the request of Gov. Mike Dunleavy.
Crum, whois now a candidate for governor, responded to the audit by emphasizing both the scale of responsibility he held and the reasoning behind his decisions.
“When I was Commissioner of Revenue, I was the sole fiduciary of roughly $135 billion in Alaska’s money,” Crum said. “That means constantly evaluating the quality of investments and if they are benefiting Alaskans. To me, it was clear that leaving billions sitting in cash accounts earning next to nothing when better options existed was not ‘safe.’ It was bad management.”
He said his approach included extensive due diligence and a focus on long-term, stable asset classes.
“I did a full year of due diligence, flagged every step, and invested in infrastructure—one of the most reliable asset classes on the planet,” Crum said. “I followed the law. I followed my fiduciary duty to the people of Alaska.”
The audit’s release comes after scrutiny of the department’s investment strategies, particularly decisions to move funds out of low-yield cash accounts into better-return investments.
Legislative audits are designed to provide independent oversight of executive branch actions and to ensure compliance with state law and best practices. In this case, it appears the committee in charge was actually targeting both Crum and Dunleavy, and using the allegations as a political bludgeoning tool.
Crum said the confirmation from both the independent review and the legislative audit underscores the importance of oversight in government, even when no violations are found.
“An independent review by WilmerHale reached the same conclusion before this audit did. Now the legislative audit confirms it again,” he said. “If the process leads to clearer written procedures for future commissioners, that is a good outcome. That is what oversight is for.”
The report is validation of Crum’s management at Revenue.
Entire legislative document can be read here.
One thought on “Audit clears former Revenue Commissioner Adam Crum of wrongdoing in investment decisions”
It is always possible to do things differently, especially in hindsight. The entire episode is an example of folks trying to do a witch-hunt where there is no witch.