Seen a Rogue on the loose? Get in touch with our Roguemeister: JOHN SCHRAG jschrag@wweek.com (503) 243-2122 FAX: (503) 243-1115 The Oregon Department of Corrections may be keeping a close watch on its prisoners, but not on taxpayers' money. Last week the secretary of state's office released a disturbing audit of expenses related to the $179 million Snake River prison expansion. The audit shows that the DOC overpaid various contractors, mainly Hoffman Construction, by $465,000. It also says another $3.7 million in charges warrants additional scrutiny. Many of the individual expenses in question are small but maddening. For example, Hoffman was reimbursed almost $600,000 for renting equipment from itself, including a 20-year-old flatbed truck that cost the state $10,000 for six months' use. But what's most galling is the lack of oversight on the project. Daily, weekly and monthly progress reports from contractors were regularly late or nonexistent. "We deliberately suspended those because they were taking more time to do than the value of reports," says DOC spokeswoman Perrin Damon. It's not like contractors were being sneaky. Reimbursement requests for cable television, lawn service and child care were spelled out in expense reports--reports signed in many cases by DOC employee Tommy Kershon, the man the department chose to keep an eye on the project. In fact, the department actually paid for two layers of oversight. In addition to stationing Kershon on site for much of the three-year project, the DOC hired California-based CRSS to watch for excessive spending. "Because the department hired this firm to represent the department's interests, we are concerned by this lack of oversight," the audit says. "A lot of the things that the audit identified we had already addressed," Damon stresses. She also says the department has learned a great deal from the Snake River project and the audits. The DOC now promises to avoid similar mistakes in the future and tighten contract loopholes. To obtain a copy of an audit report, contact the Secretary of State's Audit Division at Audits.sos@state.or.us, or visit their web site at http://www.sos.state.or.us/audits/audithp.htm - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Willamette Week | originally published March 24, 1999