Auditor praises University of Washington handling of embezzlement case

FROM THE SEATTLETIMES.NWSOURCE.COM -

The state Auditor's Office credits the University of Washington for swiftly changing employee protocols after a longtime UW Medical Center employee was accused last year of embezzling more than $250,000 from the hospital.

In a report released on Monday, Auditor Brian Sonntag recommended that the medical center better monitor employee credit cards and offer training on what the cards should be used for — changes the university said it has already made.
In reaction to Elisha Gustav Lang being accused and later charged with 19 counts of theft, UW hired an analyst to periodically examine the use of corporate credit cards by medical-center staff, according to the Auditor's Office.
The UW contacted the state Auditor's Office in April 2010 to report what Lang allegedly had done and the university instituted changes to thwart any similar activities from happening, according to the Auditor's Office. The job of the Auditor's Office is to review cases involving a loss of public funds, said Mindy Chambers, agency spokeswoman.
"We don't have any type of enforcement authority," Chambers said. "They [UW] reported the case on time and they produced an internal audit report. It all worked out pretty well."
Lang, 38, worked at the UW from July 2007 until he was fired in May 2010, around the time that UW police began investigating. On April 28 of this year, Lang, who had been an administrative manager, was charged in King County Superior Court.
There were nearly 1,900 charges on Lang's corporate card totaling more than $200,000 in spending, charging documents said. Lang used the money to buy artwork, kitchen and bathroom accessories, laptop computers, speakers, flat-screen televisions and other home electronics, according to the Auditor's Office.
Lang also used a UW travel account to purchase airfare, lodging and ground transportation totaling $39,350, charges said. He also reportedly asked the university to reimburse $1,612 worth of personal expenses and was reportedly paid more than $6,700 for taking time off that he had not actually earned.
Charging documents didn't disclose the remainder of the alleged theft, which police say totaled $252,059.
While employees assigned a corporate card would have an administrator sign off on their charges, the UW did not have anyone overseeing Lang's credit-card spending, charging paperwork said.
"The University's investigation found that the Medical Center Administration did not sufficiently oversee and review the Administrative Manager's card activities," according to the Auditor's Office.
So far, the UW has recovered more than $190,000 from its insurance company and credit-card provider.
Since the incident the UW has not only hired an Internal Control Analyst to oversee credit-card spending, it also has trained current and prospective corporate credit-card holders, according to the auditor's report