Systemic Oversight Failures in City of Mesa

A fraud investigation report released by the Washington State Auditor’s Office has exposed a breakdown in local governance at the City of Mesa, revealing how a lack of basic oversight allowed a former Clerk-Treasurer to siphon public funds for personal use.

The report details a pattern of unchecked spending that went undetected by the Mayor and City Council for nearly a year.

The Honor System Governance

According to state investigators, the fraud occurred between November 2022 and November 2023. During this period, the City’s internal controls were described as “not adequate to safeguard public resources.”

The mechanism of the theft was brazenly simple. The Clerk-Treasurer used a city-issued debit card for personal expenditures. The list of unauthorized purchases reads less like a complex embezzlement scheme and more like a personal shopping list funded by taxpayers:

• Vehicle loan payments

• Groceries and decorations

• Personal utility bills

• Storage unit fees

• Tires

• Online clothing purchases

The Franklin County Sheriff’s Office initially identified $9,228 in misappropriated funds. However, a subsequent subpoena of online vendor records by the State Auditor uncovered an additional $3,431 spent largely on clothing between April and October 2023.

Leadership Asleep at the Wheel

The most critical finding for Mesa residents is likely the one that places the burden of the failure on elected leadership. The Auditor’s Office explicitly noted that the “Mayor and City Council did not perform a secondary review of the City’s bank statements.”

This failure of secondary review meant there was effectively no check on the Clerk-Treasurer’s power. She was responsible for the entire financial chain: accounts payable, utility billing, receipts, and reconciling the very bank accounts she was draining.

The Clerk-Treasurer was eventually terminated on October 11, 2023, not for fraud, but for “performance issues,” and working inconsistent hours that left City Hall closed for weeks. It wasn’t until months later, in January 2024, that the City discovered the unallowable transactions and notified the State Auditor.

The Questionable Thousands

Beyond the confirmed theft, the audit flagged an additional $9,913 in “questionable” debit card purchases made between November 2022 and September 2023.

These funds were spent on lodging, food, and various online vendors. Because the City failed to retain supporting documentation, auditors could not determine if these expenses were for legitimate city business or further personal enrichment.

The Cost to Taxpayers

The financial damage to the City of Mesa extends beyond the stolen funds. The City is now liable for $6,513 in investigation costs payable to the State Auditor’s Office. When combined with the misappropriated funds and the potential loss from the “questionable” expenses, the total impact on the city’s coffers approaches $30,000.

The State Auditor has recommended that the City seek recovery of the $12,659 and the investigation costs from the former employee or its insurance bonding company. The case has been referred to the Franklin County Prosecuting Attorney’s Office.

In their official response, City officials stated they are “working towards a better system for reconciliation along with more involvement from the Mayor and council.” For the taxpayers of Mesa, the question remains why such involvement wasn’t present before the public trust was violated.