State Auditor Brian Sonntag released the weekly audits and the City of Spokane came up short while the Department of Soxial and Health Services showed how easy it is to avoid the state ethics law.

In Spokane two city employees were suspected of using non-profit organizations to misappropriate city funds. The State Auditor’s Office investigated but found that, “Due to the lack of internal controls, missing records and the comingling of Wellness Association and Community Center financial activities, we could not determine whether a loss to the City occurred…Our investigation found that the City did not have sufficient controls in place to monitor and review the financial activities of the Community Center.”

The two employees resigned before the investigation but the State Auditor will refer this case to the Spokane County Prosecutor’s Office for any action it determines is necessary.

Meanwhile the State Auditor received a whistleblower assertion that the former Director of the Community Services Division at the Department of Social and Health Services negotiated two sole source contracts totaling $44,500 with a consulting company and later went to work for that company. State ethics law prohibits state employees from accepting employment or receiving compensation from a private business within one year of leaving state employment if the employee negotiated a contract on behalf of the state with that business within the last two years.

However, the State Auditor “found no violation of state law. If the subject was no longer a state employee, this would have been a violation of the state ethics law. However, the subject Washington State Auditor’s Office was on department-approved unpaid leave at the time he made the request. Due to the subject’s employment status, the state ethics law does not apply.”

Somebody needs to change the state ethics law!

For full details on these audits and the 21 others without significant deficiencies, go to http://portal.sao.wa.gov/SubscriptionServices/RecentAuditReportSubscriptions.aspx?CID=8247 .

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