As Don writes below, the King County GOP is electing officers this Saturday. One controversy is Richard Pope's allegation of PDC violations by KCGOP. Pope's complaint was posted by a Public Blog contributor here. Chairman Mike Young, who is running for re-election, addresses Pope's allegations by e-mail, posted below in its entirety. I know Young reasonably well and trust him and would be very surprised if there's anything significant here other than as he has explained. But I've provided both the complaint and the response so everyone can judge for themselves:
Stefan,Posted by Stefan Sharkansky at November 30, 2006 04:13 PM | Email Thisthank for your email regarding our reporting problems with the PDC. First, as you will read below there is no missing money or misappropriated money. Part of the issue relates to the conversion to the PDC's new electronic reporting systems. We have replaced the person with reporting duties and have put in place internal controls designed to insure that this never occurs again. Frankly, you can always blame someone, but the responsibility is mine. As soon as I learned of these problems, I acted swiftly to correct them and to disclose the problem the PDC. What surprises me is that Mr. Pope filed his complaint knowing we had already disclosed it and were working with the PDC to file our amended reports. I want you to know I take this very seriously and will continue to make sure these problems are corrected and we remain in full compliance. I remain proud of the level of our fundraising and support to our candidates. This will make possible to continue our activities so important to us here in King County. Let me know if I can answer any further questions you may have regarding this or any other issue
Regards Michael Young
Dear Mr. Pope:
Thank you for your recent email. When we received your email in late August, we immediately notified the staff of the Public Disclosure Commission and began to work to address the problem you referenced. Countless hours have been spent reviewing the Non-Exempt and Exempt Accounts from the beginning of 2005 to the present and preparing amended reports for filing. We continue to work with the PDC to correct the problems with our reporting that were compounded by the use of new software for filing.
Attached below are five questions Mrs. Ruth Gibbs emailed to me and my responses.
If you have further questions, I would be glad to talk with you. I know that you would be most interested in hearing how we have resolved the problem you reference so we can move on to the greater purpose of electing Republicans.
Best Regards,
Michael YoungChairman
Ms. Gibbs' questions:
a) What is the explanation for the discrepancy between the monetary balance on the PDC reports on December 31st, 2005 and January 1st, 2006?
b) A Mr. Bernards from Preston donated $5100.00 in January, but this was not reported until the amended PDC report on November 5th. Please explain.
c) On February 27th, 2006 the KCGOP gave the Eastside Republican Club $11,009 and change. This was not reported until the May PDC report. On February 28th, 2006 the Eastside Republican Club gave the KCGOP $11,482 and change. This was not reported untilt the amended PDC report on November 5th. Please explain both the late reporting and the reason for the monetary transfer back and forth between the KCGOP and the Club.
e) Could we please see a detailed record of IRS, Employment Security and L&I withholdings and payments for payroll taxes for both 2005 and 2006? I would request an explanation for the financial statement in I believe September that showed over $100,000 on hand for payroll withholdings. This item did not appear the next month on the financial statement. That sum of money is probably double a year's salary. Please explain the large reserve and the absence of such reserve the following month.
f) Who are the members of the audit committee, and when was the last time we had an audit?Responses:
Dear Ms. Gibbs:
In response to your email of November 26, 2006:
a) We have been working with the staff of the Public Disclosure Commission since late August 2006 to resolve this issue. The bottom line: there are no missing or misappropriated funds. We believe the discrepancy may be monies not properly credited to our accounts when the 2006 books were started using the ORCA software for our PDC filings. These issues are being worked out with PDC staff and will be examined fully when our accounting review is completed next month, but let me be clear again - there are no misappropriated or missing funds.
b) Mr. Bernard's donation was a deposit that was inadvertently overlooked. When we discovered this fall that there was a problem with our reporting, this was one of the specific issues that was discovered, corrected and immediately reported to the PDC.
c) Monies exchanged between the KCGOP and the Eastside Republican Club were the result of our offer to run the credit card charges stemming from their Holiday Dinner and Auction. We took in $11, 482.00 in credit card receipts and dispersed $11, 009.00, which are the charges less the MasterCard/Visa service fee.
[Ms. Gibbs' email contained no point "d".]
e) We will be glad to provide you with an accounting of payments to Employment Security, L&I and our 941 payroll tax account. Please call the office if you would like to see this information.
f) The KCGOP does not have an Audit Committee. In September we contracted with Management Resources Consulting Group of Port Orchard, WA to do a review of the KCGOP books. We expect this to be completed during December 2006.
At this time, I do not believe it would be appropriate or timely to have a meeting of the Executive Committee. We are working closely with the staff of the PDC to resolve the issues you mention in your email.
If anyone on the Executive Committee is interested in viewing any of the records referenced by Ms. Gibbs' email, please contact the office to make an appointment.
Thank you for your email. Our goal, as officers of the KCGOP, is to elect Republicans and to promote our Republican values as stated in the 2006 King County Republican Central Committee Platform.
Sincerely,
Michael E. YoungChairman
http://www.kcgop.org/documents/bylawsKCRCCProposed.pdf
Young appointed Geoffrey Tamman, a 2002 graduate of Seattle Pacific University who works for the Deloitte Touche accounting firm. I will assume that Tamman is technically competent and capable of performing the duties of Treasurer of an organization such as the King County GOP.
However, at some point in the process, it was decided that Tamman would not actually do the Treasurer work, but instead it would be done by the office assistant -- i.e. the person who works the front desk. Tamman has actually claimed that he "resigned" as Treasurer in February 2006, but still formally remains holding that office. On November 5, 2006, Tamman filed paperwork with the PDC stating that he was still Treasurer for the King County GOP.
In any event, the ultimate responsibility for timely and accurate PDC filings rests on the Chairman. The Treasurer is appointed by the Chairman and serves at the Chairman's pleasure. The Chairman should know whether or not the Treasurer has filed the PDC reports in any given month, for example. Or whether the PDC reports at least reflect the KCGOP actual bank balance (one report filed in August 2006 -- corrected several weeks later -- actually showed an overdraft of more than $29,000!).
In Article IX, Section 2 of the KCGOP By-Laws, there is a requirement that the books be audited annually by a Certified Public Accountant. I am not aware of this having ever actually been done or not.
In September 2006 (apparently after an embarassing expose' on HorseAss.Org of the enormous reported overdrafts and some of the late PDC filings), Young states that he contracted with "Management Resources Consulting Group of Port Orchard, WA to do a review of the KCGOP books". I am not sure whether this is to make up for the lack of competent Treasurer services during the Young/Sotelo administration, or whether it is intended to take the place of a formal CPA audit.
"Management Resources Consulting Group" is run by Ed Mitchell, who is the Treasurer of the Washington State Republican Party. Mitchell has a Bachelor degree in Accounting, and apparently a lot of experience in managerial accounting. Mitchell seems to have done an excellent job as State GOP Treasurer -- all their PDC reports have been timely filed, and indeed the State GOP expenditures are reported with a level of detail lacking in most campaigns. I assume Mitchell will be able to straighten out all the errors in the King County GOP books and PDC reports during 2005-06.
However, Mitchell is not a Certified Public Accountant. Certainly, if there was ever a year to actually follow Article IX, Section 2 of the By-Laws, this would be the time to do so. Once Mitchell gets done with correcting all the errors in the Young/Sotelo books, the result should be audited by a CPA to make sure everything is properly accounted for. And the books maintained by the incoming administration should also be audited by a CPA, to make sure she or he is doing their job correctly.
Whether or not a CPA audit should be regularly required in the King County GOP By-Laws could perhaps be addressed in December 2008, when the party has its next reorganization meeting. A CPA audit certainly isn't cheap by any means. But it would be nice if the CPA auditing was actually done for a few years (as required by existing By-Laws), and then decide whether it is wise to remain as a regular requirement.
Posted by: Richard Pope on November 30, 2006 05:02 PM
Just what is it that makes you want to trust
Michael Young? The fact he threatened Phil
Fortunato by telling him at a previous convention
that if he handed out literature that spelled
out the differences between he and von reichbauer.
That Michael Young wouldn't allow the delegates
to vote for him. Or maybe its two years ago
at the annual King county gop picnic when he told
Edwina Johnston if she handed out her flier
about the King county council races he would
have her arrested.
Maybe its because of the way he and his friends
have setup this meeting on Saturday.Michael Young
is so desperate to keep his power that he and
his friends deliberately have started it this
early to try and suppress the turnout.Not to
mention the fact they could have picked a more
central location in king county than Mercer
Island.
Or maybe its how Michael Young has actually
stood up and taken some responsibility for
for what happened this past election.A real
leader would have done that.But hey what to I
why know. After all he can raise money and
in a losing party thats all that matters.
I therefore have personally concluded, that there is absolutely Zero difference in this state, between the current GOP leadership, and the money hungry dimocraps.
We need new GOP leadership in this state!
Time to sweep out the barn!
They are nothing but warmed over dimocraps eager to take your money.
Posted by: GS on November 30, 2006 06:20 PMFor Christ's sake Phil do you have complain about everything? You know if you spent less time sitting with the lights off griping about how dark it is and more time actually helping the team you might actually be a happier person.
Posted by: Reporterward on November 30, 2006 06:45 PMNeutral, Reporterward? Doug Parris, "all around nice guy", and sticking by that (sarcasm above heads, not withstanding)? "Drinking Liberally" with Goldie? What's going on with you these days? Are you getting ready to run for office?
Posted by: Michelle on November 30, 2006 07:26 PM
Instead he continues to pull this crap all
for the sake of holding on to power in a
losing party.In the future don't take the
Lord's name in vain to make a point.Don since
when are you neutral when it comes to Michael
Young?As I recall back in January you thought
he was doing a great job.
Posted by: phil spackman on November 30, 2006 07:32 PM
Sounds to me like Michael did the right things to correct a mistake.
Posted by: thor on November 30, 2006 08:29 PMI just am still irritated that Pope claims to be an R but ran as a D against Maleng and insinuated he was a racist. Will he ever explain that? Ever? Pope, are you listening???
Posted by: AD on November 30, 2006 09:32 PMGeez, dude, I see people coming in to downtown Seattle from Stanwood, North Bend, Tacoma, and the Issaquah hinterlands every day on the bus but once a year on a weekend they can't be bothered to drive to Mercer Island??? Sounds like the carbon dioxide level is a tad high at your house for that kind of thinking.
Posted by: Burdabee on November 30, 2006 11:21 PM Fine so lets have it on Mercer Island.However
why not start it at 10 am as opposed to 7:30?
There is no reason to start that early on a Saturday
morning.Michael Young is doing this because he
thinks this will keep some pcos who have to travel from
the other side of the county from attending.
Given the fact that they have repeatedly
changed the time and meeting place of many
district meetings this past month it doesn't
surprise me that this is happening as well.
The meeting starts at 9am. You can get there at 8:45 and be fine, I'm sure. I think the conventions have always started at that same time. In 2004 when it was at SPU (must've been another conspiracy to keep people from the sticks away) it was the same time.
Besides, I thought old people all went to bed early (usually after wheel of fortune) and woke up like before 5. That's the way my granparents always were. :)
Posted by: AD on December 1, 2006 12:31 AMI might be coming all the way from Everett just to watch the fun. If I can do it, so can the people in Issaquah and rural King Co. I don't think the people out there are nearly as upset about this as you suggest. If so, they must not have attended one of these before. They usually do start this early (credentials anyway). There are many issues to beef about with the incumbents. This is not one of them.
Posted by: Michelle on December 1, 2006 12:56 AMMaybe Phil can go back on Goldstein's show to see if he can get the meeting moved to Captial Hill.
Posted by: Huh? on December 1, 2006 06:48 AMAnd then, I get this discussion.
Gentlemen, you aren't getting anywhere bickering like you are. If you really want to take back the State, get a shovel and bury your egos in your backyard. The task is hard enough as it is.
Posted by: swatter on December 1, 2006 07:31 AMWhy should Phil Spackman and Doug Parris be required to "actually support" Republican candidates in order to be involved in King County GOP politics? And who says that Phil and Doug aren't supporting GOP candidates? Doug helped recruit several GOP candidates to run in tough Seattle districts this fall, and Phil has been quite involved in supporting GOP candidates as well.
By contrast, it is the current King County GOP leadership which isn't supporting GOP candidates. They pick and choose who they want to support, and even actively oppose some candidates after they have won GOP nominating conventions or GOP primaries. They did raise over $730,000 in the last two years, but spent less than 10% of this money in financial support for GOP candidates.
Posted by: Richard Pope on December 1, 2006 07:53 PM