Audit shows $32K misappropriated from East Adams hospital

RITZVILLE — A former employee at East Adams Rural Healthcare misappropriated about $32,000 in 2023, according to a report released Thursday by the Washington State Auditor’s Office. The report said the former accounting clerk pleaded guilty to four charges in April 2024 and served 60 days in jail.  

Adams County Superior Court records identified the woman, who pleaded guilty, as Yvette Ahuna.  

Dallas Killian, EARH marketing director, said hospital officials declined comment. 

“The auditor’s office handled all the investigation, and a lot of the information was not disclosed to us,” Killian said.  

East Adams laid off about 12 people in the spring, but Chief Executive Officer Corey Fedie said in an earlier interview that the misappropriation was not a contributing factor to those layoffs. 

Fedie said cuts were necessary to improve the hospital’s bottom line. 

“We’re one of the more distressed hospitals in the state,” he said. 

The WSAO report said the misappropriation was discovered at the district’s bank.  

“On Sept. 26, 2023, a bank notified (East Adams Rural Healthcare) that one of its customers, the (EARH) accounting clerk, had altered four district checks and used mobile deposit to put the funds into her personal bank account,” the WSAO report said. “The (hospital) district immediately placed the accounting clerk on administrative leave.” 

The subsequent investigation by EARH officials and further investigation by WSAO determined that about $32,000 was misappropriated between May 16 and Sept. 23, 2023. The auditor’s office also identified about $2,800 in questionable expenses.  

The WSAO report said about $20,750 was misappropriated by altering checks with an adhesive label and making them payable to Ahuna.  

In addition, auditors determined Ahuna made about $10,800 in credit card purchases for personal items, including home restoration services. Another $487 was charged to the EARH business account.  

“The purchased items were shipped to the accounting clerk’s home address,” the WSAO report said. 

Auditors attempted to talk to Ahuna between March 19 and June 3, but she canceled multiple appointments with them, the report said.  

In their response, EARH officials said they have implemented additional reviews of financial activity. 

“Currently, the accounts payable clerk reconciles the credit cards, matching receipts to the statement,” according to the hospital’s response. “The human resource manager then does a second review of both the statements and receipts and confirms the reconciliation. Credit card bank activity is reconciled by our senior accountant and the bank reconciliation is signed off by the CFO.” 

Hospital commissioners revised the procedure for signing checks, requiring two board members and the chief executive officer to sign.