Port of Mattawa to implement new procedures for expenses

MATTAWA — The Port of Mattawa will update its policies for expenditures following recommendations from the Washington State Auditor’s Office. Auditors found that port policies left it vulnerable to possible misuse of its funds.  

“Port staff and the board of commissioners did not have the necessary experience or training to understand the proper controls over segregation of duties and effective oversight of purchasing procedures,” the WSAO report said. 

The audit covered the years 2021 through 2023. The WSAO was conducting a separate audit into allegations of misappropriation of funds by former Port Director Lars Leland. Those allegations are under investigation by the Grant County Sheriff’s Office. 

The WASO report said port officials didn’t have sufficient controls to track some expenses, especially the district’s credit cards. 

“Employees shared (credit) cards and the port did not track or monitor the location of those cards. This means the port would be unable to assign responsibility if the credit cards went missing or the purchases were unallowable,” the report said. 

The port director was responsible for reviewing purchases, but there was no independent review, it said. Commissioners didn’t conduct a detailed review of purchases and expenditures.  

“The port purchasing policy is not sufficiently detailed to cover purchasing requirements or restrictions, travel, meals with meetings, promotional hosting (or) employee appreciation,” it said.  

The expenditure of about $28,600 was questioned, since the port lacked either adequate documentation or policies to cover those cases. The expenditures ranged from a tenant appreciation event to meal purchases. The port spent about $3,100 on vehicle maintenance expenses for employees who were using their own cars for port business.  

“The port does not have a working vehicle at this time and does not have a policy that covers expenses related to (the use of) personal vehicles while conducting port business,” the audit report said.  

The director also reviewed payroll, including his own, it said.  

In their response, port officials said they would implement new controls to ensure better oversight of expenses. New procedures will track who has credit cards and who is using them. The port will implement an independent review of employee payrolls and require better tracking of receipts. 

“We will reach out to other port districts and the Washington Public Ports Association finance committee to identify best practices,” the port response said.