Professional Designations CPA = Certified PUBLIC Accountant CFE = Certified Fraud Examiner Professional Background What we CAN do What we CAN’T do Forensic Accounting
Background How we gain access to documents Document Requests May 30 th – CRC Expenditures and Revenues May 30 th – Answers to Data Discrepancies July 5 th – Contractor Bids, Contracts, Invoices for 10 major vendors August 3 rd – Expenditure detail encompassing all FY 2011 CRC Project – Forensic Accounting Scope
RCW 42.56.030 Construction The people of this state do not yield their sovereignty to the agencies that serve them. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may maintain control over the instruments that they have created. This chapter shall be liberally construed and its exemptions narrowly construed to promote this public policy and to assure that the public interest will be fully protected. In the event of conflict between the provisions of this chapter and any other act, the provisions of this chapter shall govern.
Update on Data Discrepancies Project Expenditures – Excel Spreadsheet Format Total $108M $15M not coded to a vendor name See White Paper $38M not coded with a specific purpose (e.g. rent expense, engineering expense, etc.) 09-11 Biennium data - fixed
David Evans and Associates Rate Schedule – Total Billing Rate = 304.32%
April 17, 2007 Total Labor (Man Hours) = $91,536.66 Total Payment to DEA $280,291.35 Difference = $159,922 Overhead $28,834 Profit July 24, 2009 Total Labor (Man Hours) = $138,469.74 Total Payment to DEA $420,532.59 Difference = $234,445 Overhead $43,618 Profit Examples of Markup on Labor
TASK ORDER DESCRIPTIONORIGINAL COST CHANGE ORDERS TOTAL COST AATo provide scoping of CRC Project. $250,000$50,000$300,000 ABProvide services to “jump start” the CRC Project. $100,000$3,510,340$3,610,340 ACAdvance project to refine purpose and need, confirm alternatives for DEIS, recommendations on procurement process $16,008,709$343,145$16,351,854 ADAdvance project through the following key milestones: Publish DEIS, Prepare Draft and Final LPA, Prepare PE Application for New Starts, Implementation plan for delivery of final design and construction $23,678,649$280,055$23,958,704 CRC TASK ORDERS
TASK ORDER DESCRIPTIONORIGINAL COST CHANGE ORDERS TOTAL COST AETo provide scoping of CRC Project task AF $75,000$0$75,000 AFAdvance the project through the following key milestones: IAMP Plan, Draft WA/OR Right of Way Plans, Partial Design Acceptance; FEIS Published, Record of Decision Received $21,585,274$11,280,765$32,866,039 AGScoping for SR 500 Interchange and Victory Braid for $100,000$0$100,000 AHAdvance the project through a DEIS, begin FEIS and biological activities. $15,791,944$8,741,276$24,533,220 CRC TASK ORDERS - CONTINUED
TASK ORDER DESCRIPTIONORIGINAL COST CHANGE ORDERS TOTAL COST AICoordinating, reviewing and presenting information to Independent Bridge Review Panel $450,600$161,838$612,438 AKSupport of implementing a panel of experts to review the constructability of the CRC (additional Independent Bridge Review Panel Support) $322,500$806,494$1,128,994 GRAND TOTAL$78,512,676$25,173,913$103,686,589 CRC TASK ORDERS - CONTINUED
Continue analysis on task orders and change orders – determine vendors paid Continue to seek out critical documents for analysis Expenditure data per WSDOT electronic records Affected Properties Now What?
THANK YOU!! Tiffany R. Couch, CPA/CFF, CFE Acuity Group PLLC 360.573.5158 firstname.lastname@example.org www.acuityforensics.com