State audit of Darrington reveals lack of oversight in 7 areas

DARRINGTON — There are problems with how the town’s money is managed and how its information is tracked, according to a state audit released last week.

Town operations lack enough oversight to protect public resources in seven areas, according to the audit. There are problems with: receiving cash; billing for utilities; handling donations; managing vendors; overseeing payroll; documenting state grants; and tracking city-owned items.

The auditor concluded that the causes of the problems are turnover in town staff, lack of training for employees and the chaos of the Oso mudslide in 2014, which killed 43 people and temporarily cut Darrington off from the rest of the county.

Darrington has seven employees, four of them full-time, and an annual budget of $2.5 million.

City leaders have failed to set new policies for tracking money or to train staff on existing ones, the audit found.

The longtime clerk and deputy clerk retired in 2013. Replacements hired in early 2014 left a year later. A new deputy clerk was hired in March and a clerk-treasurer in August. They now are training extensively on town rules and practices, clerk-treasurer Dianne Allen said.

The auditor recommended that Darrington officials:

better manage and document donations

keep records for vendors, grants and employee leave and pay schedules

separate cash handling duties

have independent reviews of receipting, utility billing and payroll

track city-owned property that is “determined to be small and attractive,” such as laptops or printers.

There is no evidence money has been misused, said Thomas Shapley, spokesman for the auditor’s office. But there are concerns that could happen if things don’t change, he said.

Darrington doesn’t have enough separation of duties for handling money. The deputy clerk and clerk-treasurer both have been responsible for receiving and recording payments and managing cash boxes. Darrington also lacks a system to track vendors for services and purchases.

Like vendor information, payroll documents have not been maintained. One employee’s balance of vacation hours reached more than double the city-mandated limit of 240 hours and staff haven’t kept documents showing approved pay schedules.

Officials also failed to update water rates in the town’s billing system. Though the Town Council in June 2013 voted to raise rates, that change never was made to the bills. Customers have been paying a base rate of $25 when they should be paying $28, resulting in about $11,000 in lost revenue each year, according to the audit.

The council recently reviewed the rates and a $28 base charge will start in January, Allen said.

Auditors also looked at the two largest state grants received in 2014: $673,977 for transportation and $122,500 for street projects. The town didn’t keep documents showing whether those grants were used in a way that complies with state bidding requirements.

The town had a similar problem with donations. Darrington received $50,000 from United Way and the Association of Washington Cities after the Oso mudslide. Staff couldn’t produce documents tracking the acceptance and use of those dollars.

However, the auditor was able to confirm through the donors and account information on the checks that the money was deposited into the town’s bank account.

Aside from the loss of $11,000 a year from utility bills, the auditor wasn’t able to determine how much Darrington’s management concerns may have cost.

In a written response, town officials promised to fix the problems. They plan to separate cash management duties so more than one employee is involved in the process. They’ll record and keep information for donations, grants, payroll and vendors. Tagging small items and having an independent review of town processes also are on the to-do list.

Officials plan to hire a file clerk to make sure town records are kept, Allen said.

Audits of city operations in 2011 and 2012 found that cash handling duties should be separated, loans between city funds should have payment plans and equipment records should be kept for machinery purchased with federal money.

The cash handling problems remain, equipment records have been partially updated and interfund loan issues have been fixed.

The auditor plans to follow up on the 2013-14 problems during the next audit.

Kari Bray: 425-339-3439; kbray@heraldnet.com.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

A firefighter stands in silence before a panel bearing the names of L. John Regelbrugge and Kris Regelbrugge during the ten-year remembrance of the Oso landslide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
‘Flood of emotions’ as Oso Landslide Memorial opens on 10th anniversary

Friends, family and first responders held a moment of silence at 10:37 a.m. at the new 2-acre memorial off Highway 530.

Julie Petersen poses for a photo with images of her sister Christina Jefferds and Jefferds’ grand daughter Sanoah Violet Huestis next to a memorial for Sanoah at her home on March 20, 2024 in Arlington, Washington. Peterson wears her sister’s favorite color and one of her bangles. (Annie Barker / The Herald)
‘It just all came down’: An oral history of the Oso mudslide

Ten years later, The Daily Herald spoke with dozens of people — first responders, family, survivors — touched by the deadliest slide in U.S. history.

Victims of the Oso mudslide on March 22, 2014. (Courtesy photos)
Remembering the 43 lives lost in the Oso mudslide

The slide wiped out a neighborhood along Highway 530 in 2014. “Even though you feel like you’re alone in your grief, you’re really not.”

Director Lucia Schmit, right, and Deputy Director Dara Salmon inside the Snohomish County Department of Emergency Management on Friday, March 8, 2024, in Everett, Washington. (Ryan Berry / The Herald)
How Oso slide changed local emergency response ‘on virtually every level’

“In a decade, we have just really, really advanced,” through hard-earned lessons applied to the pandemic, floods and opioids.

Ron and Gail Thompson at their home on Monday, March 4, 2024 in Oso, Washington. (Olivia Vanni / The Herald)
In shadow of scarred Oso hillside, mudslide’s wounds still feel fresh

Locals reflected on living with grief and finding meaning in the wake of a catastrophe “nothing like you can ever imagine” in 2014.

Everett mall renderings from Brixton Capital. (Photo provided by the City of Everett)
Topgolf at the Everett Mall? Mayor’s hint still unconfirmed

After Cassie Franklin’s annual address, rumors circled about what “top” entertainment tenant could be landing at Everett Mall.

Everett
Everett man sentenced to 3 years of probation for mutilating animals

In 2022, neighbors reported Blayne Perez, 35, was shooting and torturing wildlife in north Everett.

Dorothy Crossman rides up on her bike to turn in her ballot  on Tuesday, Aug. 1, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Everett leaders plan to ask voters for property tax increase

City officials will spend weeks hammering out details of a ballot measure, as Everett faces a $12.6 million deficit.

Starbucks employee Zach Gabelein outside of the Mill Creek location where he works on Friday, Feb. 23, 2024 in Mill Creek, Washington. (Olivia Vanni / The Herald)
Mill Creek Starbucks votes 21-1 to form union

“We obviously are kind of on the high of that win,” store bargaining delegate Zach Gabelein said.

Lynnwood police respond to a collision on highway 99 at 176 street SW. (Photo provided by Lynnwood Police)
Police: Teen in stolen car flees cops, causes crash in Lynnwood

The crash blocked traffic for over an hour at 176th Street SW. The boy, 16, was arrested on felony warrants.

The view of Mountain Loop Mine out the window of a second floor classroom at Fairmount Elementary on Wednesday, Jan. 10, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
County: Everett mining yard violated order to halt work next to school

At least 10 reports accused OMA Construction of violating a stop-work order next to Fairmount Elementary. A judge will hear the case.

Imagine Children's Museum's incoming CEO, Elizabeth "Elee" Wood. (Photo provided by Imagine Children's Museum)
Imagine Children’s Museum in Everett to welcome new CEO

Nancy Johnson, who has led Imagine Children’s Museum in Everett for 25 years, will retire in June.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.