Former Island Transit chief gave herself raises, audit revealed

Reports by the Washington State Auditors Office lays the blame for financial problems at Island Transit squarely at the feet of the five-member board.

But the real bombshell concerns Martha Rose, the former director, who took vacation without deducting it from her vacation balance, but will receive $116,000 in a severance package that included $88,000 for her unused vacation balance.

A team from the Washington State Auditors Office announced three official findings in the exit conference Friday morning largely attributable to lack of oversight. No misappropriation of public funds were identified, they emphasized.

The cause of the current financial crisis, which led to service cuts and layoffs of 21 workers, was poor monitoring of finances by the board, one report states.

The audits also identified $100,000 in questionable costs associated with a federal grant including the construction of gazebos which could have financial consequences.

Noncompliance with the grant requirements may require the transit authority to return all or a portion of this money to the grantor, Audit Supervisor Jenny Lofton said.

Rose received regular raises without board approval; her performance hasnt been reviewed since 1996; she took leave without deducting it from her leave or vacation balance; and she claimed to go on two-week conferences when flight records showed she was only gone for four or five days, according to a draft audit report.

Board members approved a severance agreement with Rose following an executive session, Oct. 17. She received two-months salary, totaling about $18,0000, plus $88,000 for her vacation balance, per her contract, according to Bob Clay, chairman of the transit board and a Coupeville councilman.

Clay said the problems concerning Rose were the result of poor record keeping, but nothing nefarious.

I dont believe Martha stole time or anything else that didnt belong to her, he said, adding that she had much more leave on the books than would have been allowed to be paid to her under the separation agreement.

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Former Island Transit chief gave herself raises, audit revealed