The Northwest Open Access Network (NoaNet) lacked adequate...
The Northwest Open Access Network (NoaNet) lacked adequate internal controls in 2010 and 2011, which led to an increased risk of misuse, loss and misappropriation of public services, said the Washington State Auditor’s Office in a report released Monday (http://1.usa.gov/16dUldS).…
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NoaNet began as a commercial operation in January 2001 to provide a broadband communications backbone throughout the state, said the office. The project got about $54 million in grants from the Broadband Technology Opportunities Program in 2010, said NTIA (http://1.usa.gov/16UBEb5). The office said credit purchases for June 2011 don’t have adequate documentation to support businesses purposes, and unallowable purchases such as flowers, valet services and room upgrades were also identified. Reimbursements for various business expenses “lacked adequate documentation to support the validity of the payment,” said the office. It said employees were paid double their regular rate for hours worked on holidays, but NoaNet was unable to provide documentation on its board’s approval of this practice. Per company policy, NoaNet purchased office equipment to furnish at-home work offices, but the auditor’s office said the company doesn’t have policies for tracking and monitoring equipment purchases worth $2,849. The office said it recommends NoaNet clarify existing policies and add policies to ensure staff have the information to “accurately interpret and act on Board expectations.” Since the 2010-2011 audit period, NoaNet told the office it updated its policies in the employee handbook and improved the retention of supporting documentation for payments, said the report. It said NoaNet reported increasing the number of employees in its accounting department to “compensate for a sustained Network growth.” NoaNet has been working with the State Auditor’s Office over the past several months to address the findings from the audit, a company spokeswoman told us in an email. “We take their findings very seriously and appreciate their efforts in assisting us in putting in place stronger controls and procedures.” NoaNet has experienced significant growth over the past two years and through its work the State Auditor’s Office, NoaNet has “put in stronger financial policies, procedures, compliance monitoring and infrastructure that will allow us to effectively manage our public resources,” she said.