REPORT OF WHISTLEBLOWER INVESTIGATION DEPARTMENT OF SOCIAL AND HEALTH SERVICES DIVISION OF CHILDREN & FAMILY SERVICES REGION 5 NO.

06-033 DECEMBER 11, 2007 Notice of Filing and Transmittal December 11, 2007 Attached is the official report on whistleblower case No. 06-033 at the Department of Social and Health Services. This report is transmitted by the State Auditor's Office pursuant to Chapter 42.40 of the Revised Code of Washington, the Whistleblower Act. Questions about this report should be directed to Jim Brittain, Director of Special Investigations at (360) 902-0372. BRIAN SONNTAG, CGFM STATE AUDITOR cc: Robin Arnold Williams, Secretary Kathy Brockman, Chief Administration Officer

The State Auditors Office received assertions of improper governmental activity at the Department of Social and Health Services, Region 5, Division of Children & Family Services. These assertions were submitted to us under the provisions of Chapter 42.40 of the Revised Code of Washington, the Whistleblower Act. We investigated the assertions independently and objectively through interviews and by reviewing relevant documents. This is the result of our investigation. Assertion 1: The previous Region 5 Administrator for the Division of Children and Family Services, Department of Social and Health Services, authorized the payment of $1.5 million to a private, non-profit organization without a contract. Although we found no reasonable cause to believe the previous Regional Administrator inappropriately authorized payments without a contract, we found no agreement was in place at the time services were rendered. RCW 43.88.160(5) (3) Fiscal Management-Power and duties of officers and agencies. It shall be unlawful for the treasurer to disburse public funds in the treasury except upon forms or by alternative means duly prescribed by the director of financial management. These forms or alternative means shall provide for authentication and certification by the agency head or the agency heads designee that the services have been rendered or the materials have been furnished;...The responsibility for recovery of erroneous or improper payments made under this section shall lie with the agency head or the agency heads designee in accordance with regulations issued pursuant to this chapter... The State Administrative and Accounting Manual, 16.10.30(a) states: All contracted client services require a written document specifying the agreement between the agency and the contractor. Required elements in a client service contract are identification of the parties, scope of services, compensation terms, period of performance, payment mechanism, and signatures or responsible parties. The State Administrative and Accounting Manual, 20.20.30(a) (c) States: (a) The agency director has the ultimate responsibility for establishing, maintaining, and reviewing the system of internal control in the agency. The agency director should designate one individual with sufficient authority to carry out assigned responsibilities, as the internal control officer...

(c)The manager of each organizational unit and any other components within an agency is responsible for internal control in that unit. Dont instruct the contractor to begin work before the contract is executed and approved. Dont change the description, scope of work, period of performance or maximum dollar amount of the contract without processing a written amendment. During the investigation, we requested documentation relating to contracts between the Department of Social and Health Services and the non-profit organization. The assertion stated in July 2005, the Department signed a contract for services with the Pierce County Regional Support Network (RSN) on April 4, 2006 for services from January 1, 2006 through June 30, 2006. State law requires contracts to be signed before services are provided. We found two other instances in 2006 in which this issue arose. In June, the Department contract manager submitted a request to continue services past June 30, 2006 without a new contract because contract discussions still were under way and services were needed. A $375,000 amendment to the agreement was initiated on September 26, 2006, again, after the services had begun. We found this issue of late agreements and amendments dated back to 2000, when the Department entered into an interagency agreement with the RSN. The agreement was for services from October 1, 2000 through June 30, 2001 at a cost of $500,000. The agreement was not signed until November 21, 2000, one month after the services began. This agreement authorized the RSN to contract with the non-profit on behalf of the Department to obtain services for families in crisis, targeted specifically at clients under 18. The agreement stated the Department and the contractor were responsible for monitoring the work through annual site visits and analysis of the results of the services. The agreement was amended in July 1, 2001 for services through September 30, 2001 at a cost of $375,000. We did not find a signed amendment in the file, but did see a notation at the top of the amendment stating it had been sent to the RSN and Department headquarters on December 21, 2001, six months after the authorized period of service. The condition of entering into new program agreements or amending agreements continued in 2002, 2003, 2004 and 2005. We found all agreements and amendments from October 21, 2000 through September 26, 2006 were entered into after services began, and in some cases, after period of service was over. Assertion 2: The previous Region 5 Administrator instructed intake workers to screen out child abuse and neglect referrals in order to control the caseworkers workload. We found no reasonable cause to believe the previous Regional Administrator instructed the screening out of accepted child abuse and neglect referrals. We noted, however, some documentation issues regarding risk assignment we communicated to the Department of Social and Health Services. RCW 26.44.030(4) (5) Reports-Duty and authority to make (4) The department, upon receiving a report of an incident of alleged abuse or neglect pursuant to this chapter, involving a child who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means or who has been subjected to alleged sexual abuse, shall report such incident to the proper law enforcement agency... (5) Any law enforcement agency receiving a report of an incident of alleged abuse or neglect pursuant to this chapter, involving a child who has died or has had physical injury or injuries inflicted upon him or her other than by accidental means, or who has been subject to alleged sexual abuse, shall report such incident in writing as provided in RCW 26.44.040 to the proper county prosecutor or city attorney for appropriate action whenever the law enforcement agencys investigation reveals that a crime may have been committed. The law enforcement agency shall also notify the department of all reports received and the law enforcement

agencys disposition of them. In emergency cases, where the childs welfare is endangered the law enforcement agency shall notify the department within twenty-four hours. In all other cases, the law enforcement agency shall notify the department within seventy-two hours after a report is received by the law enforcement agency. RCW 26.44.050 Abuse or neglect of child-Duty of law enforcement agency or department of social and health services Upon the receipt of a report concerning the possible occurrence of abuse or neglect, the law enforcement agency or the department of social and health services must investigate and provide the protective services section with a report in accordance with chapter 74.13 RCW, and where necessary to refer such report to the court. WAC 388-15-009(1) (5) What is Child abuse or neglect? Child abuse or neglect means the injury, sexual abuse, sexual exploitation, negligent treatment, or maltreatment of a child under circumstances which indicate that the childs health, welfare, and safety is harmed. An abused child is a child who has been subjected to child abuse or neglect as defined in this section. (1) Physical abuse means the non accidental infliction of physical injury or physical mistreatment on a child. Physical abuse includes, but is not limited to, such actions as: (a) throwing, kicking, burning, or cutting a child(b)Striking a child with a closed fist(c)Shaking a child under age three (d)interfering with a childs breathing(e)Threatening a child with a deadly weapon(f)Doing any other act that is likely to cause and which does cause bodily harm greater than transient pain or minor temporary marks or which is injurious to the childs health, welfare and safety. (5)Negligent treatment or maltreatment means an act or a failure to act on the part of a childs parent, legal custodian, guardian, or caregiver that shows a serious disregard of the consequences to the child of such magnitude that it creates a clear and present danger to the childs health, welfare, and safety. A child does not have to suffer actual damage or physical or emotional harm to be in circumstances which create a clear and present danger to the childs health, welfare, and safety. Negligent treatment or maltreatment includes, but is not limited, to: (a) Failure to provide adequate food, shelter, clothing, supervision, of health care necessary for a childs health, welfare, and safety... (b)Actions, failures to act, or omissions that result in injury to or which create a substantial risk of injury to the physical, emotional, and/or cognitive development of a child; or (c) The cumulative effects of consistent inaction or behavior by a parent or guardian in providing for the physical, emotional and developmental needs of a child, or the effects of chronic failure on the part of a parent or guardian to perform basic parental function, obligations, and duties, when the result is to cause injury or create a substantial risk or injury to the physical, emotional, and/or cognitive development of a child. WAC 388-15-017(3) CPS must assess or investigate all reports of alleged child abuse or neglect that meet the definitions of child abuse or neglect contained in this chapter or in chapter 26.44 RCW. WAC 388-32-0025(2) FRS is not provided for any of the following situations, unless the family is seeking an at-risk youth or a childin-need-of services (CHINS) family assessment: (a) The identified youth has not reached his/her thirteenth birthday, or the youth is eighteen years of age or older; (b) Chronic or long-term multiproblem situations requiring long-term interventions (c) Custody and marital disputes unless the dispute creates a conflict between the child and parent with physical custody; (d) Families currently receiving counseling services related to the parent-child conflict/relationship from other agencies; (e) Child abuse and neglect cases, unless those cases meet the definition of family in conflict; or (f) Youth receiving foster care or group care services or follow up to those services. The Department of Social and Health Services Childrens Administration Child Protective Services Division receives referrals of child abuse and neglect through a central intake system.

During intake, it is determined whether the allegation meets the definition of child abuse or neglect. If it does, a risk code is assigned. Those cases with the highest risk code are reviewed by a committee made up of supervisors and the area administrator, who determine if the referral should be downgraded or sent to another division of the Department. During our investigation, we conducted interviews and reviewed documents. We could not find any evidence showing the former Region 5 Administrator had instructed staff to downgrade referrals.