Auditors critical in four areas

GRANT COUNTY — Auditors remained critical of the condition of the Grant County Public Utility District in a final report released by the Washington State Auditor's Office late last week.

The SAO found fault with the PUD and its accountability in four separate areas in 2003 and 2004. The final report changed little from a draft report that was released by the PUD earlier this year.

According to SAO findings, the PUD did not provide adequate internal controls over contracts, made unauthorized adjustments to its accounts receivable billings, provided service to users outside the scope of its authority and did not follow its own policy regarding overdue received payments.

The audit centered primarily around the PUD's telecommunications system, and auditors found that the PUD did not comply with state laws nor its own policies and procedures in many of the areas they examined. The SAO report stated that auditors also made note of other issues for which they notified PUD management.

The PUD's last accountability audit also yielded findings, but the SAO said PUD staff has been receptive to the SAO's recommendations.

In its response to the SAO, PUD commission president Bill Bjork asked the state agency to help the PUD in an investigation with now-departed service provider VIB-TV. Bjork said in the audit response that the PUD wants to find out if the PUD's relationship with VIB-TV had broken the law or the public trust.

VIB-TV has since discontinued service in Grant County, and its Internet customers have been transferred to new service provider HomeNet Northwest.

SAO spokesperson Mindy Chambers said last week that as of yet, the PUD has not given the state agency enough specific information to start a formal investigation into the utility's relationship with VIB. Chambers cited the fact that the PUD pays for its audits, and the SAO has no plans to start a formal investigation based upon information they have so far received. Chambers said the SAO will look into a claim if the PUD suspects a specific misappropriation.

"If they bring us some very specific things," Chambers said, "we'll help them."

Of the audit itself, Chambers called the findings for the PUD, "A big deal."

The SAO plans to revisit the same areas again at the PUD in its next audit, and also look at some other areas if some of the current issues have been resolved.

"I'm guessing we'll probably have a report (at the) same time next year," Chambers said.

Bjork said late last week that he had not yet seen the final report, but said the PUD is trying to resolve all issues from the past and put them behind them.

"We are going to do things right," Bjork said.