The Wolf Creek Reclamation District has instituted new procedures for record-keeping and approving expenditures to address concerns raised by the Washington State Auditor. The district supplies water for more than 800 acres of irrigated land in Winthrop.
The audit, which covered the district’s activities for three years, from 2019 through 2021, found that the managing director had been paid more than $45,000 over that period, which exceeds limits set by state law. The payments included annual compensation of $12,400 for operations and maintenance of the irrigation ditch, $5,750 to reimburse him for repairs to his personal equipment, and $2,500 for additional unspecified work.
State law allows directors to be compensated for attendance at official meetings and other official duties, but payments cannot exceed $12,288 each year, according to the audit.
In addition, the director charged more than $10,000 to the district’s fuel card in the three-year period. There was another $1,300 payment without supporting documentation, according to the audit.
The district didn’t have written contracts and policies for wages, reimbursement, or use of the fuel card. The district also didn’t have receipts such as logs to track mileage, according to the audit.
There was a general lack of internal controls over how the district handles money and compensates the director, Kathleen Cooper, director of operations for the state auditor, told the Methow Valley News.
The board approved additional work, but there were no detailed minutes. These may have been reasonable expenditures, but the district had no written contracts or records, Cooper said.
Reimbursement for use of personal equipment could be allowed, as long as there’s a written policy and a valid business purpose, she said.
Narrow purpose in state law
Wolf Creek district Managing Director Curt Bovee told the Methow Valley News that he’s paid $1,000 per month for ditch maintenance, plus $400 as reimbursement for a fee he pays for an automatic valve that controls the water. The wages are based on the annual average paid to their former maintenance worker. Bovee has been on the board since 1997, but took on the maintenance job four years ago.
After the ditch was damaged by a wildfire two years ago, Bovee used his backhoe to make repairs. This year, he used the backhoe to fix a washout that occurred during high water, he said.
All board members have gas cards that they can use if they have to travel out of the area to get parts, Bovee said.
The district has revised its policies so that Bovee no longer signs payment vouchers that involve him. They also maintain documents to substantiate other expenses, Bovee said.
An irrigation district serves a very specific purpose, so auditors want to be sure all operations and finances are connected with that function, Cooper said.
A 2015 audit for 2012 through 2014 said auditors had communicated certain matters of concern to the district, but didn’t provide details. The current audit said the district hadn’t taken action to address prior recommendations.
The directors do most maintenance work without additional pay, the district said in a written response that was included in the 2023 audit. The district keeps all invoices and will start making more resolutions and taking more complete meeting minutes, it said.
A three-member board of directors governs the district. The district spent about $62,000, $39,000 and $51,000 in 2019, 2020 and 2021, respectively, according to the audit.
Because of the concerns, the next audit will cover a two-year period, looking at fiscal years 2022 and 2023, and be carried out in 2024, Cooper said.
