State auditors complete probe into ‘major theft of public funds’ in Spokane County

State auditors have completed an investigation into a “major theft of public funds” from Spokane County’s risk management office, the county announced Wednesday.

County Commissioner Mary Kuney, Auditor Vicky Dalton and Risk Management Director Steve Bartel were expected to discuss the findings of the investigation during a news conference Thursday morning.

Kathleen Cooper, a spokeswoman for the state auditor’s office, said Wednesday a report on the inquiry “is being finalized and is scheduled for release tomorrow.”

The Spokesman-Review broke news of the investigation in October. At the time, Cooper said the loss of taxpayer money had been reported to the auditor’s office in late August. The amount in question remained unclear Wednesday.

The investigation appeared to focus on a former employee who was fired from the risk management office in May.

County spokesman Jared Webley said the auditors’ findings would be forwarded to the Spokane Police Department for potential criminal charges.

Sgt. Terry Preuninger, a police spokesman, said the department is actively investigating the matter.

The risk management office exists to shield Spokane County from financial losses.

A mission statement for the office says it was established “to reduce the frequency and severity of liability and worker compensation claims by providing efficient and timely claims adjudication services, comprehensive safety training and occupational health services.”