State auditors looking into citizen hotline report about Valley Medical Center concerning CDs and thumb drives

Published 8:37 pm Wednesday, December 1, 2010

The controversy surrounding video clips edited and saved to CDs and thumb drives by Valley Medical Center staff continues to go round and round.

The most recent information involves the State Auditor’s Office and an ongoing accountability audit that now includes the production of about 100 CDs and thumb drives.

Commissioners Anthony Hemstad and Dr. Aaron Heide have accused Superintendent Rich Roodman of misuse of public funds when he authorized the production of the video clips.

The issue appeared to be settled by the auditor’s office at the Nov. 15 Valley Board of Commissioners meeting.

Larry Smith, chief financial officer, showed an e-mail from Jeannine Grinnell, from Valley’s finance department, regarding officials from the auditor’s office looking into the issue of the production of the video segments. The e-mail described a phone conversation Grinnell stated she had with Jim Griggs, audit manager with the auditor’s office.

At the Nov. 15 board meeting Smith read Grinnell’s e-mail stating, “Based upon the information the SAO had, that there is, quote, no apparent unauthorized use of funds as it relates to the topic.”

Smith went on to state, “So as of this morning (Nov. 15) at 9:52 a.m. the SAO has looked at all the information we have provided them and they’re saying as of this morning there is nothing unusual, nothing unauthorized about the… CDs.”

Kara Klotz, spokeswoman for the auditor’s office was reached Monday, Nov. 29 and she stated the auditor’s office has received a citizen hotline report concerning the issue of the CDs and thumb drives. According to Klotz, officials from the auditor’s office are looking into the hotline report as part of the annual accountability audit, which is currently being conducted at Valley.

When asked to confirm the statement made to Grinnell, Klotz said she, “will not confirm the statement until the work is done.”

Klotz said the auditor’s office does an accountability audit every year at the public hospital to check for compliance with state rules and Valley’s procedures.

Smith noted at the meeting, “We are very proud of the fact that for seven years there has not been an issue, there has not been anything that has come up that has been a concern from the SAO.”

Hot Point

The hot point of the issue centers on CDs and thumb drives containing video clips edited by staff members at the direction of Roodman. The clips were edited together from the videos of previous board meetings.

The controversy first came to light at the Oct. 18 Valley Board of Commissioners meeting. Heide and Hemstad raised the issue of staff members being directed to make video clips from previous meetings.

An anonymous e-mail sent to The Reporter, board members, the administration and the auditor’s office described the video clips as showing Heide in a “negative light” attempting to discredit him.

Hemstad made a motion to suspend Roodman and request the King County Prosecutor’s Office investigate the production of the video clips as a misuse of public funds at the Oct. 18 meeting.

The motion failed 3-2 with Heide and Hemstad voting for it. Sue Bowman, board president and commissioners Don Jacobson and Carolyn Parnell voted against it.

Roodman defended his actions stating he had the video clips produced to communicate with his management team and medical staff. He pointed out the clips were all taken from videos of open public meetings and added it was within his authority as superintendent to produce the video clips and make copies for the management and medical staff.

Prior to the Oct. 18 meeting, the board members had been locked in a wrestling match over the 2010 incentive payment plan for the executive and management staff.

Heide and Hemstad had questioned the program and the majority members, Bowman, Jacobson and Parnell, supported the plan.