Tiffany Couch, CPA/CFF, CFE Acuity Group PLLC

 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 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.)  Biennium data - fixed

 RECEIVED, but new data did not reconcile  STATUS: Still Waiting (65 days) August 3 rd – Updated 2011 Data

$130,622,247 Total CRC Expenditures Through June 30, 2011

 BACKGROUND  AUDITOR FINDINGS  ACUITY GROUP FINDINGS The WSDOT Internal Audit Report

WSDOT AUDITOR FINDINGS: WSDOT AUDITOR RECOMMENDATIONS:

 ACUITY GROUP FINDINGS:  Master Agreement does not discuss 4% MARKUP  Total 4% Markup Paid: $1,418,951  4% Paid after August 2009: $384,366 The WSDOT Internal Audit Report

 Call for Experts  Contract and Supplements  Task Orders DAVID EVANS CONTRACT

David Evans and Associates Rate Schedule – Total Billing Rate = %

 April 17, 2007  Total Labor (Man Hours) = $91,  Total Payment to DEA $280,  Difference =  $159,922 Overhead  $28,834 Profit  July 24, 2009  Total Labor (Man Hours) = $138,  Total Payment to DEA $420,  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