A management letter was sent to Maple Valley officials concerning three City Council members serving on community service boards.

The council members were not identified in the letter.

Jim Griggs, the state auditor for the south King County region, signed the letter sent to the city.

The letter stated, “… we noted some areas in which the District’s internal controls could be improved. While these items are not significant enough at this time to include in a report, we believe our recommendations will assist you in ensuring that public funds allocated to public service agencies are free of conflicts of interest.”

The issue involves Councilman Noel Gerken, acting as treasurer for the Greater Maple Valley Community Center, Councilwoman Victoria Laise Jonas, president of the Maple Valley Food Bank and Councilman David Pilgrim, treasurer for the Historical Society.

The auditor noted during a meeting in 2007, “…council members did not excuse themselves from discussions regarding the funding of agencies in which they have an interest.”

“Basically our feeling is someone is going to look at this and wonder,” Griggs said. “We did not find any conflict of interest, but we are trying to look at it from the taxpayers perspective.”

The auditor noted there was no actual conflict of interest, “but our main concern was appearance of conflict of interest.”

Griggs said there are three levels of audit reports. The highest and most serious is a “finding” where “controls are so weak someone could walk away with money.”

The second level is a management letter, which is the tact taken in this audit.

Management letters are not unusual following an audit and are meant to “bring this to their (the city’s) attention. We don’t manage entities, we just bring it to their attention. This was not important enough for a finding.”

Griggs said the third level is an “exit item, which is housekeeping. Just better ways to do business or cost benefit suggestions.”

The auditor also noted Jonas and Gerken “did not disclose their interest in the community service agencies on their Public Disclosure Commission form (PDC F-1 Supplemental).”

Both council members stated they filed following the meeting. Pilgrim had already been filing.

One of the issues noted by Gerken is volunteering on boards is an important community service.

“We do represent these groups because no one else is there,” Gerken said.

Jonas said, “as a community leader I have always been involved. I think it is important that we participate. I have always recused myself. I have answered questions for clarification when they came up.”

Council members from other communities often participate as volunteers on boards.

Gerken said the members recused themselves during budget discussions, but “if a council member has a question of fact we would answer that, but no statement of our own.”

The auditor also pointed to the way the council votes on the budget. The suggestion being council members should not vote on the parts of the budget relating to the respective boards they serve.

The city staff will be writing policy to assist the council in dealing with the issues brought up by the auditor.

“We want it crystal clear so there is no perception of conflict of interest,” Gerken said.