Auditor says ferries, agencies have problems with handling money

OLYMPIA – Washington’s ferry system and other state agencies have chronic problems handling millions in taxpayer dollars, and some departments are miserable for auditors to work with, the state auditor said Monday.

Auditor Brian Sonntag asked Gov. Christine Gregoire and the Legislature for help in improving how agencies spend and safeguard tax dollars. He released a 193-page compilation of audit findings for last year, commenting on everything from illegal payment of unemployment benefits to an agency buying new furniture without bid.

Sonntag does financial audits on 175 state agencies, ranging in size from the superagency Department of Social and Health Services to the tiny Asparagus Commission.

Sonntag, Gregoire and a number of lawmakers are collaborating on legislation to give the auditor authority to do performance audits as well. That would probe whether an agency’s resources are effectively used to produce the desired results.

In comments sprinkled throughout his report, Sonntag expressed irritation with some of the agencies. Heading his list of concerns was the auditor’s inability to determine whether the state’s $6.1 billion in Medicaid money was properly spent, since his auditors were denied access to key information.

Sonntag said some agencies drag their feet whenever auditors show up – and some even charge the auditor for providing information.

The Health Care Authority, Department of Personnel and some higher education agencies, for instance, refused to provide necessary information and should be brought in line by the governor, he said.

Another problem he highlighted was the chronic nature of the deficiencies, including problems at the state ferry system.

Evergreen Freedom Foundation, a government watchdog group and conservative think tank, complained about agencies’ failure to fix problems that have been clearly identified.

Of the 41 audit findings, 23 are repeats from last year’s report, the group said. Budget analyst Jason Mercier said agencies that refuse to fully cooperate with auditors should be held accountable, he said.

Sonntag said the auditor’s office has been complaining since 1986 that the ferry system doesn’t have adequate controls over ticket sales and revenue collection.

“Our audit revealed that controls over revenue collections at ferry terminals do not provide reasonable assurance that public funds are safeguarded,” the report said, using identical language from one year ago.

The state is losing an undetermined amount of money from ticket-sellers pocketing the cash from sales, the report said. The ferry system nabbed four ticket clerks at Colman Dock in Seattle, using video surveillance, after patrons reported getting odd-looking handwritten receipts or no receipt at all. The four had pocketed at least $1,800 off the books during a five-day period in June, the report said.

With ticket sales of more than $123 million a year and 190 ticket clerks, the state needs much better safeguards, the report said.

In comments published with the report, the ferry system will replace the current ticket sales system with an electronic fare system, phasing it in this fall.