State Audit Uncovers Misappropriated Funds at Bellevue College

According to a recent investigation by the Washington State Auditor’s Office, a Bellevue College employee misappropriated public funds by approving payments to a vendor she was secretly engaged to marry.

The fraud investigation report details how a program specialist in the college’s Student Engagement Department authorized payments for online leadership events that never took place.

According to the State Auditor’s Office, the college first identified the irregularity in July 2023. The Director of Student Engagement became suspicious after noticing expenses listed in “whole round numbers,” a pattern considered atypical for the department’s usual spending.

The investigation focused on a series of transactions occurring between November 2022 and May 2023. The program specialist, whose responsibilities included selecting vendor contracts for leadership events, approved 13 payments totaling $70,000 to a specific vendor over a two-year period.

While documentation for many of the payments was limited, investigators confirmed that four payments totaling $20,000 were fraudulent. These payments were for online events where no records could be found regarding attendees, dates, or distributed materials.

When interviewed by college officials, the program specialist could not recall specifics about the events nor produce any documentation.

A key finding in the report was the undisclosed personal relationship between the employee and the vendor. The program specialist did not disclose her relationship as required by the college’s conflict of interest policy.

Although the employee denied a personal relationship during interviews, a review of social media profiles by the college revealed that the program specialist was engaged to the vendor.

Investigators also noted that the employee made several personal trips during the period the improper payments were authorized, raising concerns about personal benefit from the misappropriated funds.

Fallout and Response

Bellevue College placed the program specialist on administrative leave in November 2023. The college has stated it agrees with the auditor’s findings and has already begun tightening its internal controls.

“We appreciate the support of the State Auditor’s Office in continuing the investigation,” the college said in its official response.

The administration noted that they have implemented new requirements for contract reviews, including approval by a division Vice President for contracts and additional disclosures.

The State Auditor’s Office has referred the case to the King County Prosecuting Attorney’s Office for potential legal action. Additionally, auditors have recommended that the college seek recovery of the $20,000 loss and $6,353 in investigation costs from the vendor or their insurance.

State Auditor Pat McCarthy’s office emphasized that the investigation was performed to ensure public resources are safeguarded and noted that they will follow up on the college’s internal controls during the next audit.

A copy of the entire report is available here.