Port of Whitman commissioners take no action in fraud probe

COLFAX — The Port of Whitman County commissioners took no action on a fraud investigation report Thursday, despite evidence of a possible misuse of public funds.

Commissioner Tom Kammerzell suggested the matter be referred to the Whitman County Prosecutor’s Office for consideration. However, that motion failed on a 2-1 vote.

The fraud complaint focused on nearly $2,700 in “questionable” fuel purchases made on a port fuel card over the past decade.

Port officials initiated the investigation last year. They subsequently asked the Washington State Auditor’s Office to conduct a separate investigation of its own.

The Auditor’s Office issued its final report Monday.

According to the findings, port staff uncovered “inconsistencies” last spring between the number of miles traveled in port vehicles the previous year and the number of gallons of fuel that were purchased.

“More fuel had been purchased than could be reconciled to vehicle use,” noted the report.

At the time, the port owned four vehicles. The port’s finance director asked all employees to turn in their fuel cards. Maintenance staff turned in four cards. A week later, then-Executive Director Joe Poire “turned in an unexpected fifth fuel card.”

The finance director reviewed all fuel purchases associated with that card from May of 2011 to May of 2021. The amount totaled $12,527.

The report said a number of the charges were in Rosalia — a location port employees didn’t routinely visit, but one that was on Poire’s daily commute.

“The finance director noted that there were no fuel charges in Rosalia after the executive director turned in the fuel card in May, 2021,” the report said. “On Jan. 1, 2022, the executive director took up a different position at the port.”

Poire announced last fall that he intends to retire at the end of 2022, after 26 years with the port. He currently handles the port’s broadband activities and other special projects.

His annual salary, according to port officials, is $182,965. That’s an increase of $11,805, or 6.9%, from his 2021 salary.

After the fraud investigation was turned over to the State Auditor’s Office, it identified at least $2,672 in “questionable fuel purchases” made between August 2011 and April 2021.

However, the report doesn’t offer any conclusions on who made the purchases. It says only that the port lacked the adequate internal controls needed to safeguard public funds.

At the time, for example, the port didn’t “maintain a log of fuel purchases, receipts or odometer readings to ensure purchases and usage are appropriate, based on miles driven or hours used.”

It also didn’t have policies in place clarifying when employees could take port-owned vehicles home.

The port commission has since adopted policies to address both of those shortcomings.

State auditors did interview Poire as part of their investigation.

According to the report issued Monday, Poire “said he sometimes became distracted after using the fuel card and did not always remember to return the card to the port vehicle after use. He said the card was only used to fuel a port vehicle, which he would use to drive home when he had late meetings.”

During Thursday’s commission meeting, Kammerzell said 11 years “is a long time to be distracted.”

He also pointed out that Whitman County taxpayers — who cover part of the port’s budget through an annual property tax levy — lost a lot more than $2,672.

“There’s the staff time and legal research we had to do,” he said. “And the investigation took another year at the State Auditor’s Office. That’s another $16,000 we had to pay.”

Nevertheless, Commissioners Kristine Meyer and Karl Webber opposed Kammerzell’s motion to submit the matter to the county prosecutor.

Webber said the port’s internal investigation and the state auditor’s investigation both failed to uncover definitive evidence of wrongdoing.

“It was all circumstantial,” he said.

Webber complimented staff on uncovering the inconsistencies in the first place, and for handling the subsequent investigation “in an absolutely correct way.”

“It’s an unfortunate situation, but this is an indictment of the procedures that were in place at the time,” he said. “I don’t think the port or (county taxpayers) should spend another dime on this. We had weak processes in place, and they have since been fixed.”

Given the inconclusive results of the two investigations, as well as the “limitations of the evidence,” Commissioner Meyer said she, too, was reluctant to ask taxpayers to sink any more money into this.

“I don’t see it coming to a different conclusion,” even if it were forwarded to the prosecutor, she said.

Following Thursday’s meeting, Meyer also noted that the commission received legal advice cautioning against firing anyone.

“That was why I voted the way I did (against Kammerzell’s motion),” she said. “I don’t want us to face additional risk.”

In other action Thursday, the commission voted 2-1 to appoint Kara Riebold as the port’s executive director.

Riebold previously served as the port’s finance director. She was appointed the interim executive director in January.

Kammerzell opposed the motion because the port never did an open search for a new director, even after Riebold was named interim director.

“My concern is that we made a convenient decision, but not necessarily the best decision because we didn’t have anything to compare it with,” he said.

Meyer said Riebold was given a six-month tryout and performed flawlessly.

“She’s been put through the grinder and performed at the highest caliber,” she said. “I’m completely and utterly satisfied.”

Webber said he also has “zero concerns” about Riebold’s ability to do the job.

Riebold’s appointment as permanent director is effective July 1. Her annual salary is $146,000.

Spence may be contacted at bspence@lmtribune.com or (208) 791-9168.