The following data has been compiled from the Washington State Auditors Office (reports) pertaining to the mismanagement of funds by the Washington State Dept. of L&I

All Auditors Reports are in .pdf format.

2001 Auditors Report:

  • Has not established adequate internal control over employer accounts. (page 48)

    2002 Auditors Report:

  • Paid at least $725,774 in workers compensation benefits to claimants and survivors who were no longer eligible for the benefits. Additionally, the Department does not verify dependents claimed when calculating time loss benefits. (page 38)
  • More than $4.7 million in employer industrial insurance premium payments recorded as being received by the Department of Labor and Industries between July 2001 and December 2001 were not reflected as being deposited in the industrial insurance financial accounts. The Dept was unable to account for this difference. (page 66)
  • Did not comply with state bid laws when purchasing medical services totaling more than $1.5 million. (page 75)
  • Did not allocate indirect costs equitably among its programs and funds. (page 81)

    2003 Auditors Report:

  • Did not provide evidence that it complied with state bid laws when purchasing information technology services totaling more that $14 million. (page 120)
  • Removed equipment that cost more than $133,000 from its inventory system without evidence that it had done a reasonable search for the missing items. The Dept did not report these losses and additional equipment losses of $128,000 to the State Auditor’s Office as required by state law. (page 162)
  • More than $5.8 million in employer industrial insurance premium payments recorded as being received by the Dept between July 2002 and December 2002 were not reflected as being deposited in the industrial insurance accounts. The Dept was unable to account for this difference. (page 175)
  • Does not have adequate internal controls over cash receipts and disbursements in its Self Insurance section. (page 179)
  • Does not perform a periodic reconciliation between its unique disbursement systems and the financial system. (page 182)
  • Did not allocate indirect costs equitably among its programs and funds. (page 211)
  • Destroyed inventory records prior to the approved destruction data. (page 214)

    2004 Auditors Report:

  • Did not provide evidence that it complied with state bid laws when purchasing information technology services totaling more than $7.2 million. (page 77)
  • Pension Payment System lacks adequate internal controls to ensure that public resources are safeguarded. (page 102)
  • Does not perform a periodic reconciliation between its unique payment systems and the financial system. (page 106)
  • Destroyed inventory records prior to the approved destruction date. (page 119)
  • More than $9 million in employer industrial insurance premium payments recorded as being received by the Dept of L&I between July 2003 and December 2003 were not reflected as being deposited in the state’s financial system. Contributing factors to this difference could be employee misappropriation, inaccurate reports or timing differences. (page 122)