BY PEPPER FISHER
Port Angeles – The Office of the Washington State Auditor, following an investigation of the Shore Aquatic Center’s finances, has found evidence of potential fraud.
In a 10-page report obtained by KONP, the Auditor’s office says during a regularly scheduled audit of the pool’s financial records they discovered that Executive Director Steven Burke personally benefitted from self-insurance payments, at least one Social Security tax refund, and credit card purchases, all totaling over $41,000. The report also says there is almost $26,000 in questionable expenses that will require further investigation.
The audit investigation covers the period from February of 2019 through August, 2025. The report says the Auditor will refer the case to the Clallam County Prosecutor’s Office.
The report, dated November 3, says, “We believe this report will be of value to the current District Board of Commissioners in addressing the control weaknesses included below, and in understanding the manner in which the Executive Director personally benefitted from the transactions reviewed.”
It said the District lacked adequate internal controls for ensuring compliance with state regulations. The report claims this allowed Burke to benefit from self-insurance medical benefits program payments, payroll tax refunds and credit card purchases to the tune of $41,148.
It also says that Burke prepares and approves his own monthly credit card charges and reimbursement requests without oversight. The audit alleges fraudulent credit card purchases for fuel, an oil change on his spouse’s car, transportation costs in Amsterdam, and prescription glasses.
We reached out to Executive Director Burke for comment but have not heard back. We did speak with the Board’s President, Navarra Carr, who reminded us that these were only allegations, and the public should allow the process to play out.
“And as a matter of policy, the auditor forwards every fraud investigation to the County Prosecutor’s Office. And so, in that kind of process where we are, we’re just sort of waiting for it all, sort of, to culminate, and for us to be able to really take the time to figure out what our next steps are, which is part of why we’ve placed Steve on paid administrative leave during this time.”
As for Prosecutor Mark Nichols, when we asked if he had seen the auditor’s report, we received the following response via email. “I received a copy of the report from the SAO on November 4. Given that two of three county commissioners sit on the William Shore Memorial Pool District board, I believe a conflict of interest exists that warrants having an outside prosecutorial entity review this matter. For this reason, on November 5, I inquired with the Attorney General’s Office regarding whether it is able to review the matter. I am currently waiting to hear back.”
The Pool District’s Board of Commissioners consists of Johnson and Mike French, both County Commissioners, Port Angeles City Councilmembers Navarra Carr and LaTrisha Suggs, and Citizen-at Large Greg Shield.
The Auditor’s report came with several recommendations to the Board, including implementing tighter controls, ensuring that all employees have employment agreements that clearly outline terms of employment and benefits, reviewing policy on the self-insurance program, and seeking reimbursements from the Executive Director.
The Board responded by saying the Pool District accepts the findings and will adopt the recommendations contained in the fraud investigation.
“You know, our board is really committed, and are making a commitment to really make the changes that they’ve recommended for us. You know, and while some of those things might take a little bit of time, we’re really committed to, you know, working towards restoring public trust and transparency, and having some more robust procedures as we move forward.”