Carver responded that because the state's criminal database was not accessed by the Corrections officer directly, the department found no need for such a review.

Curtis also said several Corrections employees had asked auditors for "whistle-blower" protection and that Curtis himself has received numerous calls from Corrections employees who say managers have made inquiries about who has been talking with legislative-audit investigators. In all, Curtis said the audit findings indicated a "culture breeding some serious discontent."

Carver defended his administration's actions, pointing out that in 2006, his first full year as director, employee grievance complaints declined sharply. Carver blamed the appearance of favoritism on a "subset of Corrections staff" who "harbor a belief in management favoritism."

"The Carver administra- tion has made staff its No. 1 priority," Carver wrote in his response to the audit.

He added that he has worked to improve working conditions, pay, staff disciplinary process and communication. Carver said he has tried to make the department "staff friendly" by giving his employees the benefit of the doubt in disciplinary actions to increase staff morale.

Valentine said he will give Carver one year to make needed changes. Valentine also asked that a second audit be conducted and presented in December 2007.

The audit report discussed Wednesday will receive further review by several other legislative committees.

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E-mail: gfattah@desnews.com