August4, 2014

Washington State Auditor

Troy Kelley
The Honorable Barbara Bailey
Washington State Senate
1 0
1
h Legislative District
PO Box 40410
Olympia, WA 98504-0410
Dear Senator Bailey:
Thank you for sharing your concerns about Island Transit. I appreciated reading the attached
news article and letter containing serious allegations relating to Island Transit. Although we had
been in contact with the Transit's Executive Director and seen the news article, we had not
received the letter until you forwarded it to us. Additionally, we are evaluating the questions
posed in the letter sent by the elected delegation for the 1 0
1
h Legislative District.
Based on our communications with the Executive Director, we are scheduled to start an audit at
Island Transit on August 11, 2014. Our financial and single audit will review the Transit's fiscal
year ending December 31, 2013 financial statements and federal compliance. After examining
the documents you provided atung with the District's activities, we will also conduct an
accountability audit to evaluate their internal controls that ensure compliance for the
safeguarding, and use of, public resources.
As part of our audit work, we will evaluate the questions you have identified in your letters.
Upon the completion of our audit work, we will be in contact with you to discuss our conclusions.
As a legislator, your connection to your community and the array of issues brought in front of
you is unique and challenging. Working with legislators is vital to ensuring The State Auditor's
Office fulfills our mission of holding government accountable for the use of public resources.
Thank you for bringing this matter to my attention.
S, ely,
; ~ 5.
Troy Kelley
State Auditor
cc: Senator Curtis King
State Representative Norma Smith
State Representative Dave Hayes
Insurance Buildi ng, PO Box 40021 Olympia, Washington 98504-002 1 (360) 902-0370 TOO Relay (800) 833-6388