Auditors point out flaws in Election Office contracts

A recent federal audit found that Whitman County did not comply with two state and federal requirements, but county officials say they began correcting the flaws even before the audit.

Whitman County spent $108,134 through its Help America Vote Act grant to remodel its Election and Voter Registration Office in Colfax in 2011.

For federally-funded construction projects that exceed $2,000, the Davis-Bacon Act requires contractors to pay federally mandated prevailing wages to workers. Construction contracts must require payment of prevailing wages and all contractors and subcontractors must submit weekly certified payrolls that show compliance.

The audit found the project’s construction contract did not include the required Davis-Bacon provision and that the county did not collect weekly certified payrolls from the contractor.

To meet this requirement, the contractor can certify in writing that it has not been suspended or disbarred. The county also can review federal listings. The county also must inform the primary contractor to check the status of any subcontractors. The county must meet these requirements before signing contracts.

The audit revealed the county did not verify the suspension and disbarment status of the contractors and did not inform the contractors of their responsibility to check the status of the subcontractors.

The audit reported that county employees responsible for administering the project were not aware of the Davis-Bacon Act or suspension and disbarment requirements.

By not including prevailing wage requirements in its contract, the county could not be assured the construction contractor was aware of the requirements. By not receiving certified payrolls, the county could not ensure all laborers were paid prevailing wages as required by federal law.

However, the audit verified the contractor was not suspended or barred from receiving federal funds during the audit period.

County officials said the county used an old contract template and acknowledged the county did not keep records on wages or contractor suspension or disbarment. Whitman County Auditor Eunice Coker said they have addressed the issue and will use an updated contract with contractors when spending federal money. The new contract will require that the information is provided by the contractor and documented in county records.

The county also has implemented a new grant management process for financial reporting and auditing. The policy dictates that all grants pass through the county auditor’s office and will be reviewed by County Financial Manager David Ledbetter after county commissioners’ approval to ensure the county is within federal compliance.

The audit also found the county’s internal controls over preparing accounting and financial statements were inadequate.

Ledbetter said because the county had 50 different bank accounts with several area banks, it made bank reconciliation difficult at best. After requesting proposals in mid-2012, the county selected Columbia Bank to handle all accounts.

Ledbetter also said because the county has a new accounting computer system, financial reporting is much easier. He also said some of the changes were made before the audit, because county officials knew the financial reporting was not accurate.

The audit reported that departments responsible for preparing financial information for the annual financial report didn’t communicate and that county staff lacked the level of technical knowledge needed to make sure the report is accurate and complete. The county also lacked procedures to make sure bank reconciliations were timely. Bank reconciliations were completed only twice in fiscal year 2011. As a result of the county’s control issues and errors, the county missed its federal single audit deadline for the ninth year in a row.

“We knew it was coming, and we’ve changed a lot of the processes,” Ledbetter said.

Ledbetter said this year the county will meet or may even beat the audit deadline.

“We’re trying to turn this ship around.”

He said a team of six people, including Ledbetter, County Treasurer Bob Lothspeich and Administrative Director Gary Petrovich, now are in charge of financial procedures.

“These people are excellent accounting liaisons,” he said.

Coker and Ledbetter said they are doing procedures differently to comply with the audit and to make things better for the county.

“With an audit, you always come out better,” said Coker.