MLIRD state audit is clean

MOSES LAKE - The Moses Lake Irrigation and Rehabilitation District received a clean audit from the state Auditor's Office.

State auditors found no problems in the areas of purchases and payments, assessment authority and procurement, according to information released Tuesday by the state agency.

The audit period covered Jan. 1, 2009 through Dec. 31, 2010.

"In the areas we examined, the district's internal controls were adequate to safeguard public assets, according to the Auditor's Office. "The District also complied with state laws and regulations and its own policies and procedures in the areas we examined."

The district hasn't had any findings since 1989, according to the Auditor's Office.

New irrigation district board chairman Mick Hansen is pursuing a special review, which covers areas state auditors did not review, he said during the board's last meeting.

He asked that J.R. Newhouse and Company, a Moses Lake accounting firm, complete the review.

He estimated it would cost between $10,000 to $12,000.

The board did not vote on Hansen's request for a review, as it is considering Hansen's amended budget. He said there is money in the budget for the review.

The independent review ensures there is a vendor invoice and a corresponding check, he explained.

Other review areas include verifying each amount received for each program, verifying amount dispersed for proper authorization and classification pertaining to schedule of expenditures and other uses, verify source documents, invoices and titles, if applicable, for proper authorization and clarification, and verify the reconciliation has been prepared in agreement with ledger balances, Hansen said.

He wants to make sure the slate is clean when he begins his new term as director.

Board director Rich Archer said the review gives a clearer idea of what is going on.

Board director Ron Covey asked if Hansen used J.R. Newhouse for his personnel accounting.

Hansen said he uses the firm, but doesn't go to Newhouse himself, rather, he uses another auditor with the company, Clayton Lynch.

Covey said J.R. Newhouse is the district's firm, which Lynch is a partner with, according to the company's website.

It seems to be a bit of a conflict for Hansen to ask his accounting firm and the district's accounting firm to do the review, Covey said.

They are only going to be accounting for themselves, he said.

The district received clean audits for the last few years, Covey said.

"It seems like a total waste of money," Covey said. "If you thought there was something underhanded going on, you should go to someone else and not someone dealing with you or the district."

Hansen asked Covey if he knew of someone else who could complete the review.

Covey said he was sure he did, if he had an opportunity to be made aware of the issues.

To have Hansen's and the district's firm do the review is out of order, Covey said.

Hansen asked the district's attorney, Chris Ries, if there was a conflict.

Ries said there was the appearance issue and a technical conflict, but he didn't see a technical conflict.

In part, Covey accused Hansen of wasting another $10,000 to $12,000 and called the review  a "witch hunt," prompting some applause in the audience.

Hansen said the state examines other areas during its audit in about 40 hours.

"We're not overlapping," he commented.

Covey disagreed, saying they were overlapping.

Hansen told Covey to raise his hand like everyone else. Someone in the audience pointed out that Covey is a board member.

Archer said he believed the review is something they needed to do, as it would protect everyone and put two sets of eyes on the district's financial records.

Kelly Ryan, of Ephrata, asked if there was a feeling that fraud had been committed by staff.

Hansen said no, he wasn't saying that.

Archer said they will be transparent after the review is done.