COMMENTARY

June 8, 2004

WSF workers arrested for stealing fares
Will the legislature finally take action?

Yesterday's arrest of four Washington State Ferry System employees caught stealing fares has finally put a human face on the repeat audit findings against the Department of Transportation's ferry division.

For nearly two decades, the Ferry System has failed audits due to inadequate controls over ticket sales and revenue collection. The finding dates back to 1986. Eighteen years later, officials still don't know how many passengers ride the ferries, or where all the money collected from passengers ends up.

Without consequences, agencies don't care about audit findings. Consider DOT's flippant response.

The Evergreen Freedom Foundation (EFF) was particularly concerned with the dismissive statement of DOT auditor Wayne Donaldson concerning the WSF ticket sale audit finding. Donaldson said in a briefing paper to the Transportation Commission: "With the exception of the now tired and worn finding at WSF by the State Auditor, relating to the revenue collection process, the agency has faired reasonably well."

Taxpayers are worn and tired of this finding also, especially the lack of corrective action.

EFF wrote to the state's Transportation Commissioners on April 23 to ask what corrective action they planned to take in response to WSF's repeat audit findings.

The Commission agreed with WSF and responded in part: "There is every reason to believe, given the nature of this finding by the State Auditor and the fundamental disagreement it meets at WSF, that next year's statewide Accountability Report will again make a critical finding in this area . . . The Commission also supports WSF in its business judgement that it would not be cost-effective to put in place the additional checks and safeguards as necessary to meet every facet of the reservations held by the State Auditor for the current point-of-sale system."

EFF also sent letters on May 6 to the chairs of the state's legislative transportation committees, Sen. Jim Horn and Rep. Ed Murray, requesting that they hold legislative hearings to address the WSF audit findings. While Sen Horn has indicated a response is on its way, EFF has not yet received a response from either legislator.

The Ferry System is not the only problem. Repeat audits are common. Hopefully yesterday's arrests will finally force the legislature to exercise some long overdue oversight concerning state agencies' audit findings. Repeat audit finding against an agency should never go uncorrected, especially not one spanning nearly two decades.

Until agencies are held accountable for resolving audit findings, we will face an indifferent and defiant bureaucracy. If legislators don't demand accountability, we can expect to see continued disregard for tax dollars.

Contact: Jason Mercier | Budget Research Analyst | 360.956.3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org