PORT ANGELES — The State Patrol is recommending that eight criminal charges, including first-degree theft and misappropriation and falsification of accounts, be filed against Port Angeles city Finance Director Yvonne Ziomkowski for allegedly abusing the city’s policy for cashing out unused vacation and sick time.
Ziomkowski, who has denied any intentional wrongdoing and has been on paid administrative leave since the investigation began Jan. 3, allegedly transferred $48,219 worth of leave from 2009 through 2011 into her deferred compensation account for retirement without seeking approval from City Manager Kent Myers, her supervisor.
Of the $48,219, $29,673 was in excess of city policy.
Myers said the city had sent a letter to Ziomkowski, requiring her to repay the city the $29,673.
The State Patrol submitted its recommendations for criminal charges to the Kitsap County Prosecuting Attorney’s Office on Friday and provided the city with a copy on Tuesday, Myers said.
Clallam County Prosecuting Attorney Deb Kelly said her office is not handling the case to avoid potential conflicts of interest.
Ziomkowski, reached by phone Wednesday evening, said she was not aware that the State Patrol had recommended criminal charges against her.
“I have no clue what you are even talking about,” she said.
“Nobody talked to me or notified me. Everything I know is from the newspaper.”
Ziomkowski declined further comment.
In January, Ziomkowski told the Peninsula Daily News that she would repay the $29,673.
The criminal charges recommended by the State Patrol are first-degree theft, misappropriation and falsification of accounts, misappropriation by a treasurer, falsely auditing and paying claims, falsely paying claims, wire fraud, exceeding purchase/spending authority per city code and exceeding cash out limitations per city code.
Wire fraud apparently refers to the electronic transfer of the funds.
Kitsap County Deputy Prosecuting Attorney Jonathan R. Salamas, who is handling the case, couldn’t be reached for comment.
Myers said he mailed two letters to Ziomkowski on Wednesday — one demanding the repayment of $29,673 and another requesting a meeting March 1 to discuss potential disciplinary action.
He declined to comment on any disciplinary action, including whether she will be fired.
She has worked at the city since 1988 and served as finance director since 1999. The State Patrol report said she planned to retire at the end of 2012.
The overpayments were made possible through lax oversight of vacation cashouts handled by the city Finance Department, according to the State Patrol..
“Ziomkowski took advantage of a system, for which she controlled, that lacked oversight and internal controls to benefit her,” the agency said in its report.
“She took advantage of the lack of knowledge of city policy and procedures by the new city manager (Myers) and new payroll specialist (Anne Casad).”
After Ziomkowski was put on leave, Linda Kheriarty was named acting city finance director.
Myers said he notified the City Council about the State Patrol report and criminal recommendations on Tuesday in executive session.
He said staff have also been notified.
“It’s a very difficult situation for all of us to deal with,” Myers said.
Myers said no other employee has been implicated in the investigation, adding that the city still has a strong record for accountability.
“We really haven’t had any major impropriety in the past,” he said.
In December, Myers made several changes to the city’s unused leave cash-out policy to increase oversight, including requiring all cash outs to be approved by the city manager and human resource manager, and limiting cash outs to one per year.
Myers said he was satisfied with the thoroughness of the State Patrol’s investigation, which includes six binders of documents.
“This is not an easy thing to do,” he said. “And I feel like we have done the right thing.”
The investigation by the State Patrol began in January after Myers met with the Clallam County prosecutor.
It came two months after a state auditor’s report highlighted limited oversight of the program that allows employees to “cash out” unused leave.
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
