Time for a correction to an earlier post.  It's not 19 repeat findings but twenty-one (21) repeat audit findings, going all the way back to 1986 in which Washington State Ferries (WSF) has had, "inadequate controls over revenue collection".  A new collection system for fares is being installed.

Of course, Transportation Secretary Doug McDonald had this to say to The Everett Herald: "When the electronic fare system is finished, maybe we'll see the auditor move on to another finding, but I'm not sure of that because it may be stuck in his word processor."  But there's more he had to say, after the State Auditor (also a Democrat) found that, "The Department of Transportation does not have adequate internal controls to ensure compliance with federal and state laws for leased properties on a timely basis" and "The Department of Transportation does not have adequate internal controls in place to ensure gasoline purchased is for authorized purposes."

In fact, as to the last one, the State Auditor's Office audit said in its finding - with my emphasis:

Description of Condition 

Our audit of gasoline purchases found the Department did not always maintain vehicle logs or other documentation detailing use of the vehicles. We reviewed 295 of 1,134 (26 percent) vehicles in the Northwest and North Central regions and found the following:

a. No vehicle logs were available for 102 of the vehicles (35 percent). Logs did not cover the full year for 81 vehicles (27 percent).

b. Odometer readings are updated in the fleet system when vehicle maintenance is performed to ensure the system contains an accurate record of miles driven for each vehicle. However, the Department does not analyze prior vehicle mileage and gasoline use when this change is made. This review could detect unauthorized use of gasoline.

c. Of the 111 vehicles that had all vehicle logs, or were missing just one, we found 61 in which the miles driven as reported in the fleet system were not the same as those shown in the vehicle logs, by a difference of 500 miles or more. One vehicle log differed from the fleet system by 22,872 miles. This may be caused by the fleet system’s reliance on the odometer reading entered at the fueling station by the vehicle driver, which may not be accurate.

We also found some gasoline credit cards are not adequately safeguarded. During the audit period, 16 of these cards were stolen, which resulted in more than $9,000 in losses on the commercial gasoline credit cards that can be used at public fueling stations throughout the state. The Department notified the State Auditor’s Office and referred the misappropriations to the appropriate law enforcement agency.

At the Headquarters Transportation Equipment Fund office, we determined the duties of employees responsible for creating, issuing and monitoring the internal Department gasoline credit cards are not segregated. These internal cards can only be used at Department fueling stations throughout the state.

Cause of Condition

The Department did not follow state law or its own policy regarding the retention of vehicle logs.  The Department was not aware of the internal control weaknesses before we identified them.

Effect of Condition

The Department cannot ensure all gasoline purchases are for authorized purposes.

I'll let the conclusion of the Everett Herald kick-off my conclusion too:

"By not having adequate controls of how gas is purchased and accounted for, it runs the risk of misappropriation," said Jason Mercier, director of the Economic Policy Center at the Evergreen Freedom Foundation.

McDonald said he was "basically pleased" with the audit findings and viewed them as proof the department is doing a pretty good job taking care of its resources.

"For an agency of our size and scope, this shows there is good, strong management controls," McDonald said.

"I believe our inventory control as shown by the auditor is as good as the inventory control at QFC," he said. "I am very pleased."

Not necessarily true, Mr. Secretary.  We've got theft and violations of law & policy…  Maybe we should have hearings into this - e-mail your State Senators and State Representatives/Spendthrifts.  Step. it. up.