Auditor's office takes issue with Soap Lake police's use of equipment

Report indicates $20,000 worth of equipment was used at SLPD chief's personal business

SOAP LAKE — An accountability report released by the Washington State Auditor’s Office took issue with the Soap Lake Police Department’s use of equipment that was provided to the department through a surplus military program.

The audit contains the results of an accountability audit of Soap Lake from Jan. 1, 2012 through Dec. 31, 2014. The audit examined the following areas during the auditing period: competitive procurement and compliance with public contracting requirements, equipment tracking, and interfund transactions.

The audit found the Soap Lake Police Department did not use assets in an approved or authorized manner. The police department’s annual budget is about $345,523, with the department’s average annual expenditures totaling $325,721 from 2013 to 2015. From October 2013 to January 2016 the SLPD sold $69,100 in surplused department assets.

In December 2013 the police department began receiving Department of Defense excess military assets through the Law Enforcement Support Office (LESO) 1033 program, which is administered by the Department of Enterprise Services (DES). In essence, the program gives police agencies the opportunity to acquire military assets for police purposes at no cost, with the exception of travel and shipping costs. The audit notes the SLPD acquired 285 assets through the LESO program, which included a piece of Bobcat equipment, an ATV, snow blowers, snowmobiles, trailers, a cargo truck, gym equipment, firearms, and other assets.

SLPD Chief Glenn Quantz was required to sign a binding “State Plan of Operation” contract with the DES in order to obtain the assets. The audit states the chief signed the contract on the city’s behalf as the “Chief Executive Official,” despite the city not being able to prove the city council granted Quantz the authority to enter into contracts on behalf of the city.

The SPO stipulates that property in the program must be used by police agencies in law enforcement actions, with an emphasis on counter-drug/terrorism activities. In addition, the property must be used for current projects and is not supposed to be used for sale, lease, loan, personal use, rent, exchange, barter, nor to be used by non-program participants.

Auditors state the SLPD used the assets for “speculative” use at a future off-road vehicle park and acquired numerous assets that have an estimated value of $129,300. They noted the SLPD acquired various gym and training equipment that is “maintained for use” at Quantz’s personal athletic business. Records indicate Quantz owns ULBFIT Training Center in Soap Lake with his wife. Quantz and Mayor Raymond Gravelle could not be reach for comment.

“These items have an estimated value of $20,350 and include an elliptical machine, treadmills, floor mat, and various martial arts equipment,” reads the report.

The report indicates the city didn’t have a contract in place with Quantz to allow him to profit from the use of program assets at his personal business. The city and SLPD did not track the assets or compliance with the terms of the contract.

In 2013 the SLPD began surplussing and selling assets “more frequently than in the past.” The sales were cash only, which in turn increased the risk of loss and reduced the city’s ability to ensure the total amounts receipted were deposited.

“Five police surplussed assets were sold to city employees. We could not verify if advertising for two of these assets was completed. A reserve officer purchased a 1999 (Chevrolet) Blazer, a volunteer firefighter purchased a 2007 Ford Explorer, and one prior police officer sold three ATVs to his stepson.”

The city granted Quantz the authority to set a price for the SLPDs surplussed assets, which auditors stated he communicated verbally to another officer who was handling the sales. They state that Quantz didn’t examine final sales paperwork and deposits that were handed over to the city’s finance director, which would have ensured the selling price was in tune with his set price and the entire sale amounts were deposited with the city.

In a review of 64 of the 285 acquired assets, auditors found non-compliance concerns over 26 assets, with two assets totaling $1,700 that were not accounted for. The city’s non-compliance could have an affect on the city’s ability to use the LESO program in the future, with auditors recommending the city strengthen its controls over acquisition, tracking, and sales of all city assets. They also recommended the city implement a monitoring system over contracts entered into by the SLPD.

The city’s response to the report states the city council and financial staff have worked with the auditor's office to correct the addressed issues in the following ways:

All city assets have been returned to the city for proper storage and administration.

The council has updated its process for entering into contractual agreements.

The city’s financial staff has implemented a city asset tracking policy.

The city’s financial staff has implemented a process for receipting and depositing of cash sales of city property, written authorization for the sale of property at less than the advertised prices and proper council approval of surplussed property.

Soap Lake city councilmember Robert Brown told the Columbia Basin Herald he was not involved in the city’s response to audit.

“The city council of Soap Lake supposedly authored this response. I wasn’t included in that. I don’t know when they did it. It was not done at any meeting that we had and we never had any executive sessions or nothing to discuss it,” Brown stated. “If there had been any discussion of this, then of course I would have recommended further investigation into the report from the state auditor.”

Brown said there is viability to the findings of the audit and the city should have solicited further investigation into the findings before responding to the report.

“What I see here is something I don’t like. This response by the city has closed it up, closed this bag of worms that was opened up by the state. Now this response has closed it back up to where there is not going to be any review of it,” Brown remarked. “I don’t think we can have an open government until the people have learned what is going on.”

Auditors state they will evaluate the city’s actions to correct the issues during their next scheduled accountability audit.

Richard Byrd can be reached via email at city@columbiabasinherald.com.