August 4, 2014

The Honorable Dave Hayes State Representative 1 01h Legislative District PO Box 40600 Olympia, WA 98504-0600

Dear Representative Hayes:

Washington State Auditor Troy Kelley

Thank you for sharing your concerns about Island Transit. We had been in contact with the Transit's Executive Director and seen the news article.

Based on our communications with the Executive Director, we are scheduled to start an audit at Island Transit on August 11 , 20.14. Our financial and single audit will review the Transit's fiscal year ending December 31, 2013 financial statements and federal compliance. After examining the documents you provided along with the District's activities, we will also conduct an accountability audit to evaluate their internal controls that ensure compliance for the safeguarding, and use of, public resources.

As part of our audit work, we will evaluate the questions you have identified in your letter. Upon the completion of our audit work, we wi ll be in contact with you to discuss our conclusions.

As a legislator, your connection to your community and the array of issues brought in front of you is unique and challenging . Working with legislators is vital to ensuring The State Auditor's Office fulfills our mission of holding government accountable for the use of public resources. Thank you for bringing this matter to my attention.

Sincerely,

-7~ !. &--t7 Troy Kelley State Auditor

cc: State Representative Norma Smith Senator Barbara Bailey

Insurance Building, PO Box 4002 1 Olympia, Washington 98504-0021 (360) 902-0370 TDD Relay (800) 833-6388