PORT ANGELES — City Hall is taking a close look at its policy regarding “cash outs” for unused sick and vacation time after a state audit found that two department heads received up to $77,496 more than city policy allows.
The overdraw, in part, came from city Finance Director Yvonne Ziomkowski and Fire Chief Dan McKeen being compensated for more unused leave than the policy allowed in a year, a common practice for employees nearing retirement, according to Ziomkowski.
The city of Port Angeles allows employees to turn 80 hours of unused leave into cash and 40 hours to be transferred into their retirement plan.
The state Auditor’s Office, in its annual review of the city released Monday, found that Ziomkowski and McKeen had a combined total of $36,595 in the past four years cashed or transferred to their retirement plans in excess of the combined maximum of 120 hours a year.
Additionally, the report says another $40,901 in unused leave may have been inappropriately allocated to the two department heads.
City policy allows unused leave over 960 hours to be transferred at 25 percent of its value.
Both Ziomkowski and McKeen have accumulated leave over that amount and were compensated the full value for their unused leave.
The report found no evidence of intentional wrongdoing.
Ziomkowski said they were following a long-standing practice that allows employees who are nearing retirement but haven’t fully participated in the city’s retirement plan to cash-out more unused leave than the written policy allows.
That allows them, she said, to “catch up” with retirement and is a practice that has been ongoing for 20 years or more.
“The auditor said the interpretation of the policy was not always consistent,” Ziomkowski said.
“It was always consistent when you look at the past practices.”
Also, she said, the city’s policy regarding unused leave accumulated over 960 hours is intended to only apply to employees who have quit or retired.
But Ziomkowski adamantly denied that she was compensated for more than the policy allows in order to be reimbursed for as much leave as possible at its full value.
“Absolutely not,” she said. “This never even crossed my mind.”
McKeen was on vacation last week and couldn’t be reached for comment.
Myers said he had requested the auditor take a look at the issue after it came to his attention.
He has not decided whether the funds will be repaid.
Myers said the policy will be revised by the end of the month.
He said it has not been determined how it will be different and whether the number of hours allowed to be cashed each year will be changed.
“I have no comment on that,” Myers said.
“We’re in the process of reviewing that.”
He said any leave being cashed or transferred to a retirement plan will now need his approval.
In the past, such actions needed approval from Ziomkowski and the employee’s department head.
Myers said it was common for the city manager to sign off on the transfers. That stopped when he was hired in 2009.
He said he was unaware of why that happened.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
