What happened then? That investigation, which centered on the District's Regional Small Business Development Program, ultimately led to the firing of the District's superintendent and its chief financial officer, as well as criminal charges against the program's manager, Silas Potter Jr., who is currently awaiting trial on 41 counts of theft stemming from the scandal.
New audit finds more questionable payments: It now seems that the total amount misspent
could be much higher, according to a recent report from the Washington State Auditor's
Office. In addition to the previous payments, the new investigation calls
into question almost $1.3 million of expenditures from Small Works Roster construction contracts awarded by Potter.
Systemic problems found: The recent report identifies problems in a number of key areas that are
essential to a healthy Small Works Roster program:
- Oversight: The report criticizes the lack of internal controls and oversight. Checks and balances are important for all public procurement and contracting activities.
- Documentation: The auditor found that many invoices lacked sufficient details and supporting documentation, and that payments were made when services were not provided.
- Policies: The district also lacked Small Works Roster policies and procedures to ensure compliance with applicable laws, such as obtaining quotations from the required number of contractors and always executing written contracts with contractors.
- Training: The audit recommended that managers and staff be trained about effective internal controls, and that staff running the program have the experience identified in the position description.
District response: The district initially reported its concerns to the auditor to conduct its investigation, and has since made a number of changes to strengthen the management of its Small Works Roster process.
Additional information:
- Seattle Times article on the most recent scandal
- Washington State Auditor's report on the issue
- My previous blog post on the original scandal
Mike Purdy's Public Contracting Blog
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