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Wednesday, July 5, 2023
thechronicleonline.com
CRFR audit indicates potential fraud Serving Columbia County since 1881
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arly findings of the boarddirected forensic audit into Columbia River Fire and Rescue’s (CRFR) finances indicate widespread mismanagement of district funds. Accounting firm Merina+Company (MCO) conducted the audit, and at a special CRFR board meeting on June 30, MCO Partner Robert Moody detailed the early findings of the audit that was ordered on April 28. Prior to ordering the audit on April 28, in a regular board meeting on April 11, Medina stated that he had presented documents to Columbia County District Attorney Jeff Auxier that showed financial irregularities on the part of current and past employees and their family members before his arrival. Medina announced that Auxier and Oregon State Police would investigate these irregularities. According to Moody, financial irregularities stem from multiple past employees being improperly classified for purposes of employer retirement contributions to PERS, $1 million of under-reported salaries and wages to the workers’ compensation provider, and irreconcilable credit card charges on district accounts. Moody opened his report to the board, saying he has 35 years of governmental accounting, auditing, and reporting experience, but this case is unique. “I will admit that outside of a couple of other fraud cases that I’ve worked, I’ve never seen anything quite like this,” Moody said. “Internal controls over financial reporting and accounting at the
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CRFR board members and command staff hearing the results of the financial audit at a special meeting on June 30.
district, it would be an understatement to say they just weren’t good.” Credit card findings The audit was conducted using records provided by the district, but Moody noted that there were instances of missing or unavailable records that could be indications of fraud. “The lack of complete, accurate, and retrievable financial records is often an indication of either incompetence on the part of finanical personnel or an indication of a complex scheme of obfuscation to mask misappropriation,” the audit states. One area where documentation was lacking was reporting ex-
penses paid for with district credit cards. Upon Medina’s arrival at CRFR, the audit stated that he began reviewing and restricting the use of district cards. Upon the arrival of his new Chief Director of Finance, Jimmy Sanchez, all credit cards for the district were recalled, except for one in Medina’s name. Prior to Medina’s arrival, the district established credit card accounts with U.S. Bank in 2016. Some of the charges that the audit highlighted as being examples of potential misuse were: • Charges at hair salons • Air, lodging, and meal travel costs for which no documentation was provided • Excessive charges to Amazon
and grocery stores for which no documentation was provided According to the audit, credit card charges were set up to be automatically withdrawn from the district’s checking account, bypassing board approval. Individuals who had districtissued cards were Monica Cade, Richard Fletcher, Jennifer Motherway, Marit Nelson, Eric Smythe, Jay Tappan, Ian O’Connor, David Coombs, Jeremy Lehner, Erick Holsey, and Medina. Between 2016 and 2022, the referenced accounts made purchases amounting to $709,728, an average of $118,288 per year across all cardholders, according to the audit. Former CRFR Finance Di-
rector Marit Nelson and former Fire Chief Ian O’Connor incurred charges of $204,080 and $209,784, respectively, nearly 30% of total credit card charges for that period. The report found that former employees Motherway and Nelson incurred travel expenses of $2,174.52 and $4,599.02, where no supporting documentation was provided. These travel expenses included multiple one-night stays in Las Vegas. For the same period from 2016 through 2022, MCO identified $35,574 in meal expenditures. MCO found that $19,688 of these expenditures could be attributed to the account of Cade and Motherway. The audit said the purchases from these two accounts “appear excessive.” The report also stated that there was a downward trend in spending on the accounts of Motherway, Nelson, and O’Connor on the arrival of Chiefs Medina and Sanchez. It should be noted that a civil lawsuit was filed against the CRFR and Chief Medina on April 7 by former employees Anika Todd and Jennifer Motherway, alleging sexual harassment, wrongful termination, retaliation, and a hostile work environment. A third employee, Monica Cade, joined the lawsuit on the same day as the CRFR emergency board meeting. PERS and workers comp The audit also found that several employees, including Motherway, Cade, Nelson, Susan Cerelli,
See CRFR Page A7
City gets $2.5M for sewer system improvements STAFF REPORT Country Media, Inc.
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he City of St. Helens has been awarded a $2.5 million Community Development Block Grant (CDBG) from Business Oregon for sewer system improvements. The funds will be used for design, engineering, environmental review, and permitting for the St. Helens Sanitary Sewer Capacity Improvements Project. In November 2021, the City of St. Helens updated its Wastewater Master Plan. The City’s previous master plan was developed in 1989, and the update was long overdue. Cities use master plans as a road map to evaluate their current infrastructure, prioritize necessary improvements and deficiencies, and plan for future growth. The City’s 2021 Wastewater Master Plan analyzed the St. Helens sanitary sewer collection system and concluded that the majority of the City’s sewer mains are currently operating at or above
capacity. The sanitary sewer collection system has a finite capacity to carry wastewater based on the size of the system’s infrastructure such as pipes and manholes. When a sewer exceeds 85% of its flow depth to pipe diameter, it is considered undersized. Inadequacies in the sewer system increase the risk of potential sanitary sewer (sewage) overflows in the system. After reviewing the data, it was clear that to continue to provide safe and effective sewer service and protect public health and St. Helens waterways, sewer deficiencies would need to be immediately addressed. City staff and the St. Helens City Council launched the Sanitary Sewer Capacity Improvements Project to perform critical capacity upgrades. The project will achieve several objectives, including: • Reducing the risk of potential sanitary sewer overflows in the
See SEWER Page A9
This map shows the locations of the sewer system improvements.
Courtesy from the City of St. Helens
Columbia County DA Auxier leaving office WILL LOHRE Country Media, Inc.
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fter six years serving Columbia County, District
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Vol. 141, No. 28
Attorney Jeff Auxier is stepping down from his elected position effective July 7. Auxier has accepted a senior deputy district attorney staff position in the Multnomah County District Attorney’s office and he cited a number of reasons for stepping away prematurely before his team ended in Columbia County. “This is really a family decision. Something that my wife and I think is best for our family and our two boys. And I feel really good about the office that I’m leaving in Columbia County,” Auxier said. “I am someone who worked in Multnomah County for a little under ten years before coming out here, and I feel compelled to help with the public safety challenges that are happening in the city right now.” Compensation in Auxier’s new position was also a factor. In his new position, Auxier is slated to make $204,637 per year within the Multnomah County DA’s office. As District Attorney in Columbia County, Auxier said he received about $131,000 from the state annually, and about $19,740 in
additional compensation from the county per year, totaling approximately $150,000. Auxier was originally elected in 2017, before being reelected in May of 2022. Auxier was slated to serve a second four-year term. While he said he loves Columbia County and has enjoyed living here for the past ten years, Auxier added that he feels compelled to rejoin his colleagues in Multnomah County. Auxier and Multnomah County DA worked together in the misdemeanor unit “ages ago.” “[Schmidt] is someone that I care about; I know he cares about that office, and he’s someone I’d be proud to work for,” Auxier said. Auxier said he’s been considering the move for most of the spring. While he will be stepping down, Auxier said he doesn’t foresee his successor changing approaches to cases and investigations that Auxier was managing.
See AUXIER Page A8
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This is really a family decision. Something that my wife and I think is best for our family and our two boys. ~ Jeff Auxier, Columbia County DA