(The Center Square) – A newly released report from the Office of the Washington State Auditor found a former city employee in Morton in Lewis County misappropriated more than $900,000 in public funds over nine years.
Tammy Clevenger was hired in 2012 as the city’s clerk-treasurer. Red flags appeared the following year, according to audit findings.
SAO Assistant Director of Communications Adam Wilson told The Center Square his office was first involved in 2013.
“The clerk-treasurer had written a check to herself for about $2,400,” Wilson explained. “When we questioned that, city officials said it was a personal loan and the mayor later corroborated that and we admonished them, saying you can’t loan your employees money even if it will be paid back.”
Among warning sign: Auditors noticed more than $10,000 in ATM cash withdrawals from the city’s bank account.
“Then in 2019, the same person [Clevenger] reported to the state Department of Retirement Systems that she had left the city, so she could withdraw retirement funds,” Wilson noted.
A year later, the department determined she was still working and notified the city of the alleged fraud.
Still, the city took no action, according to Wilson.
“This is a classic case of misplaced trust and the inherent danger in just trusting someone to do their job when you’re talking about public funds,” he said.
Auditors found the clerk-treasurer was solely responsible for processing payments, writing checks and reconciling bank accounts.
“She was able to approve a payment, she was able to write the check and then go in and reconcile the bank account, meaning the only person to check to make sure the books matched was the person who was misappropriating the funds,” Wilson said.
He went to to say, “You always have to separate the duties. So, if one person is writing the checks, somebody else has to check the bank account.”
In all the audit determined that more than $937,000 was misappropriated over nearly a decade.
“Her highest year was 2019, when she misappropriated more than $148,000 in a single year,” said Wilson.
Wilson said it’s up to local authorities to charge Clevenger with any crimes.
“We are turning our files over to city police, and they are working with the Lewis County prosecutor and any charges or resolution will lie with law enforcement,” he concluded.
The full audit report can be read here.
