HomeMy WebLinkAbout2016-01-28-minutes--exit-accountability-audit-conference2016-01-28 MINUTES 1
COMMISSIONERS' MINUTES
KITTITAS COUNTY, WASHINGTON
COMMISSIONERS AUDITORIUM
SPECIAL MEETING
THURSDAY 8:00 A.M. JANUARY 28, 2016
Board members present: Chairman Obie O’Brien; Vice-Chairman Paul
Jewell; and Commissioner Gary Berndt.
Others: Julie Kjorsvik, Clerk of the Board; Clay Myers,
Undersheriff; Gene Dana, Sheriff; Judy Pless, Budget & Finance
Manager; Nick Henderson, Coroner; Jerry Pettit, Auditor; Brett
Wachsmith, Treasurer; Kathy Jurgens, Finance Systems Manager;
Mark Cook, Public Works Director/Interim Engineer; Kaitlyn
Reddick, Fiscal Analyst; Lisa Young, Human Resource Director;
Val Barschaw, Clerk; Chris Horner, Deputy Prosecutor; Greg
Zempel, Prosecutor; Cindy Adams, Administrative Assistant; Patti
Johnson, Solid Waste/Facilities Maintenance Director; Mandy
Wilson, Audit Lead; Sadie Armijo, (Representing Mark Rapozo,
Deputy Director of Local Audit); Ann Strand, Audit Manager; and
3 members of the public.
SPECIAL MEETING EXIT CONFERENCE - STATE AUDITOR COMMISSIONERS
At 8:00 a.m. Chairman O’Brien opened a Special Meeting for the
Washington State Auditor’s Office Exit Conference.
Mandy Wilson, Audit Lead reviewed the Kittitas County
Accountability Audit report for the period January 1, 2014
through December 31, 2014, which included an Audit Summary;
Schedule of Audit Findings and Response; and other related
reports.
Ann Strand, Audit Manager reviewed Audit Findings and Responses
No. 2014-001. She explained that they found the Kittitas County
Treasurer’s office does not have adequate internal controls over
accounts receivable for personal property taxes and has not made
collection of delinquent accounts a priority, resulting in
potential lost revenue. She described the background and gave a
description of the condition, cause of condition, effect of
condition and their recommendations. She said after reviewing
materials in 2014 and seeing weaknesses, it resulted in them
going back to 2011. The State Auditors Staff explained they
found that the former Treasurer did not pursue collection of a
relative’s delinquent personal property tax penalties and
interest of $7,716.00. Instead, it appears the former Treasurer
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attempted to use her position to influence another department
(Assessor’s office) to waive the penalties and fees. The
Treasurer’s office did not submit accurate and complete
information when filing a proof of claim for taxpayer bankruptcy
and two accounts totaling $151,522.00 were not included on a
bankruptcy proof of claim, resulting in the County being unable
to collect on the tax revenue. It was also noted the Treasurer’s
office did not perform adequate procedures to collect on 18
accounts with delinquent personal property tax totaling
$155,609.00, as required by State law. They did not take the
steps to either sell the personal property or attach a lien on
the property owner’s real property, as required. The Board of
County Commissioners approved to write-off delinquent mobile
home and personal property taxes totaling $27,910.00 that were
never adjusted in the accounts receivable system and remain
outstanding.
The State Auditor’s office reviewed information relating to
their findings in the Treasurer’s office, and said the County
has responded and taken steps to comply with the State Auditor’s
recommendations.
Ann Strand reviewed a Management Letter relating to the
Sheriff’s office. She reviewed their recommendations which
included ensuring all contracts over $5,000.00 are approved by
the County Commissioners; perform a rate analysis to ensure the
County is charging accurate costs for patrol services; provide
an effective review over billings to ensure they are calculated
correctly; and to follow State law and register property timely.
Sheriff Gene Dana and Undersheriff Clay Myers said they have
been working on policies which address the State Auditor’s
recommendations.
Cheryl Chance asked for a timeline of if/when any criminal
charges would be filed against the former Treasurer. Greg Zempel
explained that since it’s an issue relating to Kittitas County
it has been referred to the Yakima County Prosecutors office for
review and there is no timeline. Undersheriff Clay Myers
explained how the Prosecutors office does not conduct
investigations and how the City of Ellensburg would be in charge
of that.
The actual cost of the audit was $75,370.00 which was approved
by the County through a Memorandum of Understanding, as the
County requested additional work to be performed. It was noted
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the State Auditor would be publishing the report early next
week.
LETTER STATE AUDITOR COMMISSIONERS
Commissioner Jewell moved to approve and authorize the Chair to
sign a letter to the Washington State Auditor’s office, relating
to the audit of Kittitas County from January 1, 2014 through
December 31, 2014. Commissioner Berndt seconded. Motion carried
3-0.
AGREEMENT AMENDMENT 4 – GCBH COMMISSIONERS
Commissioner Jewell moved to approve the Fourth Amended
Interlocal Agreement with the Greater Columbia Behavioral
Health. Commissioner Berndt seconded. Motion carried 3-0.
The meeting was adjourned at 9:02 a.m.
KITTITAS COUNTY COMMISSIONERS
CLERK OF THE BOARD KITTITAS COUNTY, WASHINGTON
Julie Kjorsvik Obie O’Brien, Chairman