By Kate Reardon
Herald Writer
COUPEVILLE — The Island County Treasurer’s Office has an increased risk for fraud because of the way money is handled there, according to a recent state audit report.
Treasurer Maxine Sauter says that’s hogwash.
But six of the last eight state audits for Island County show problems that continue to plague Sauter’s office.
The auditor’s report shows cash-handling flaws such as lack of receipts issued to customers, a delay in recording and posting payments, and cashiers who continue to work out of the same cash drawer.
Sauter said she respects the state auditors, but contends consideration should be given to smaller governments such as Island County. The county has about 72,400 people and covers of 209 square miles.
"You can’t compare Whidbey Island with King County," she said, adding that her staff of seven works differently than staffers in a larger office.
The auditor’s report contends the weaknesses "greatly" increase the risk of fraud, saying "we continue to be concerned about the inherent risk present in the office."
For example, all cashiers have access to the same cash drawer. If money is missing, the audit says the treasurer would not be able to determine who was responsible.
Also, receipts are only given if people ask for them.
The auditor’s office recommends that the county improve money handling and establish accountability over all payments by the public or other county departments, promptly log all payments received in the mail, and consider buying a cash register and related software for accountability and receipts.
The auditor also suggests that duties of the cashiers be segregated into mailing billing statements, delinquency notices and adjusting accounts.
But Sauter, who plans to run for re-election this year, said she believes her office is accountable. She said her staff is cross-trained because it is so small.
"I’m a hands-on treasurer," said Sauter, who has held the position since 1986. "I’m very pleased with the way my office runs."
She said the auditors didn’t stay in her office long enough to see that duties of staff members are segregated, that receipts are given and checks are deposited when received.
She said it’s doubtful that she’ll make any changes based on the audit recommendations.
The county has annual revenues of more than $37 million, all of which is collected at the treasurer’s office. The treasurer also collects an additional $62 million in property taxes and more than $600,000 in special assessments for cities, school districts, fire districts and other taxing districts.
You can call Herald Writer Kate Reardon at 425-339-3455
or send e-mail to reardon@heraldnet.com.
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