Findings in the investigation were forwarded to the Thurston County Prosecuting Attorney’s Office, said Mindy Chambers, spokesperson for the auditor’s office. She identified Tony Ward as the district’s superintendent implicated in the investigation.
“Any action that would be taken here on out would be up to the prosecutor’s office,” she said.
Thurston County Prosecutor Jon Tunheim said he hasn’t talked to anyone in his office about the auditor’s findings yet, but that before anything moves forward, his office will likely ask either the Yelm Police Department or the sheriff’s office to take a look at the findings and determine if a criminal investigation is necessary.
“We normally don’t take action on that until there is a formal law enforcement investigation,” he said.
The state auditor’s office is recommending that the district attempt to recover more than $77,000 from Ward, including investigation costs. According to the report, the district board must also improve oversight of cemetery operations, including adopting policies and procedures to more closely monitor revenue and expenditures.
Ward’s last day as superintendent is Wednesday, according to Yelm Cemetery staff.
According to the investigation, Ward:
• Kept two sets of books to write receipts, one for the district and the other for his monument and headstone business. When customers came to the district to arrange for a burial, he would take the entire order and enter it into the receipt book for his business. He would then write a personal check to the county treasurer for the portion due to the cemetery.
The investigation found 128 times when the cemetery received no money or only a portion of what was due for products and services, totaling about $41,925 funds lost.
• Gave himself a pay increase of 0.1 percent in 2009 and 2.5 percent for 2010 and 2011 that was not authorized by the cemetery board. These overpayments total $1,612.
• Between January 2006 and May 2011, paid for $17,520 in employee benefits with district funds rather than personal funds as required by federal regulation.
• Used a district credit card to make purchases and then claimed the same items on his reimbursement requests. The investigation found the superintendent was overpaid $1,010.54.
According to the auditor’s office, Ward said during interviews that he knew nothing about the pay increase and had been reimbursed twice for credit card expenses resulting from paperwork errors. He also stated that he had deposited personal checks into the district account five to seven times.
The investigation also found that “the district had no formal policies or procedures in place to cover daily operations such as cash receipting, purchases, employee reimbursement and payroll” and that it “operated on verbal agreements.”
In a response to the auditor’s office, cemetery district commissioner Judith Cusick stated that the board needs new policies and oversight but also defended the commissioners, saying the elected volunteer board depends on employee honesty and integrity.
“Regardless of how many policies and guidelines are in place, the possibility and/or opportunity for misappropriation of funds remains high,” Cusick stated.
The special investigation came after the office received a citizen complaint in April that Ward was using district resources for personal use and public money to advertise his personal business. The Thurston County Treasurer’s Office also alerted the auditor’s office that Ward was depositing personal checks into the cemetery account.
Nate Hulings: 360-754-5476
nhulings@theolympian.com
www.theolympian.com/outsideoly
