From Tiffany Couch – Acuity Forensics

Sun, May 21, 2023, 5:03 PM

to EWUA Board of Directors – Clyde Duke, Jim Nelson, Joe Cohen, Mike Cleveland, Steve Smith, Ron Claus,

Mr. Duke ~

I’ve looked at the files sent to me. I expressly requested that Dan be left out of obtaining the receipts but can see with the submission that many receipts were sent to him or requested by him on 5/19/2023. Not sure why that occurred.

In looking at what was returned, there are several of the expenses that have zero receipts. This includes Ray’s Pharmacy, UBER, and Car Repair locations. I was just given a printed page from Divvy showing the expense. No receipt supporting the expense (i.e., dates, locations, itemized purchases, etc.).

There are several items that he shipped to his personal residence and/or ordered via his personal email. This includes home goods and an iPad. Why would someone who’s been given a $2,900 Apple laptop also need a $900 iPad?

There is also no explanation of the fact that Dan Burke has taken ZERO paid time off in 18 months. I went back through the GUSTO payroll records and can confirm. This includes holidays. By never reporting paid time off, he has essentially reported that he has worked every single day for that period of time and taken no time off (including holidays which should be deducted from his PTO balances). Is that true?  If that is not true, and he's taken time off, then his PTO balances are overstated. And if his PTO balances are overstated and he subsequently paid himself out 200 PTO hours (in addition to paying himself his regularly salary), this is called a theft of time/overpayment of payroll. I am currently working a similar case in another county in which a county employee did the same exact thing (i.e., took time off, did not reduce the hours from her PTO bank, then paid herself out lump sum PTO balances) – they are prosecuting this activity criminally.

Lastly, I’m quite concerned about what I observed during the meeting last week and what I have come to learn since that time.

Notably, I was shocked to learn that the previous Treasurer was denied access to your accounting systems and documents. Your treasurer should have full and complete access to such systems. This would not only ensure proper internal controls, but this would also ensure continuity of access should you have an issue with your general manager. It is your board treasurer, not your general manager, who should have administrative access to all systems.  Your general manager should have user access only.

I recognize that you are afraid of losing Dan Burke. I also recognize that I was given limited information in my initial review.  However, there are things going on here that give me pause and should be considered questionable. Questionable activity can often be curbed with proper oversight, retraining, and potential repayments of funds, if warranted. In my professional experience of over 25 years, questionable activity, left unchecked, often results in subsequent significant fraud. I know that none of you want that.

I am copying the entire board on this communication and will be communicating with all members of the board from here on out due to the fact that I believe I have not been given a full picture of what has happened at EWUA.

If you are having a meeting tomorrow, I can likely accommodate attendance via Zoom.

Best Regards,

Tiffany

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