State Audit triggers Evergreen Commission to strengthen oversight of levy-funded services

Charles Pilcher
Evergreen Hosp.commissioner

In early July, the State Auditor's Office gave the Evergreen Administration notice of a 2010 Accountability Audit including the Levy. 

This triggered the Board to take action on key Levy items in their July 6, Board meeting.   The Minutes state, "Commissioner Pilcher is concerned about oversight of levy-funded services and would like to see that strengthened." 

Commissioner Greenfield commented "that levy programs should be able to answer the questions of how they are making the community healthier, what is the measure and rate of change, and are they supporting the strategic objectives of Evergreen?"

Commissioner Hirt commented, "that while the number of beneficiaries is important, program effectiveness is also key."  Ms. Hirt is taking a more active role on the Levy Committee. 

Ms. Laurene H. Burton, Administrative Director,* presented the draft of a new "Levy Committee Charter" on July 19, 2011.  The Charter bolsters oversight of the Levy by identifying and formalizing the Levy Committee purpose, composition, responsibilities and duties.  The Commission was operating without a Levy Charter up until July, 2011. Read More >>

Evergreen Hospital Commissioner incumbent August Kempf copes with State audits during 2011 election

R. August Kempf, Commission Pos 3
Represents Redmond / Sammamish

Editor's Note:  In the October 2, 2011 election Mr. Kempf won 98% of the vote.  

Commissioner August Kempf's financial expertise hasn't appeared to help Evergreen resolve problematic annual state audits.  Should Commissioner Kempf oversee Evergreen Healthcare for another six years? 

Evergreen Hospital is a property-tax supported county hospital.   $24,153,945 in levy monies were collected last year from Redmond, Sammamish, Kirkland, Woodinville, Bothel, Duvall and other district property owners.  Most tax dollars fund debt service for growth; a modicum goes to "community healthline services."

"Five publicly elected hospital commissioners have the ultimate responsibility and accountability for the Evergreen district.  Citizens entrust their elected commissioners to approve major financial decisions and provide legal oversight of Evergreen."   But, do they?

R. August "Auggie" Kempf is an incumbent, running unopposed this year.  He's an 11 year commissioner for Evergreen  Hospital and he's asking the electorate for another 6 years on November 8.  If you live in Redmond or Sammamish, "Auggie" is your designated representative.  He runs an insurance, investment and financial planning firm in Redmond with probably the most financial skill sets of the five commissioners.  Mr. Kempf attended seven "Audit and Finance Committee Meetings" last year - more than four commissioners.

Mr. Kempf's financial expertise hasn't appeared to help the hospital pass annual state audits.  The State Auditor's Office (SAO) charged Evergreen in recent years with twice the serious audit "Findings," of Lake Washington School District and City of Redmond combined.   2009 was not a good year either.  The SAO reported 3 findings:

• the hospital was paying contracted staff hourly rates almost double their employed nurses.  SAO recommendations to reduce contracted nurses resulted in an estimated $7.5 million in savings.
• Evergreen collected $1.8 million in cash (deli, pharmacy, gift shop) in 2008.   SAO findings:  internal control weakness increase risk of misappropriation.  Status to be reviewed in 2010 audit.
• "Evergreen Healthcare did not comply with competitive bid laws on two projects totalling $1,223,856 in 2008.  In 2009 the SAO determined corrective actions were taken.

The more distant Audit History during Mr. Kempf's tenure is equally poor:  Read More >>