The small lumber town of Roy continues to be rocked by controversy as a letter from the state Auditor’s Office, which was obtained by The News Tribune, reveals officials paid themselves and other staff thousands of dollars more than they were allowed to.
In one case, the city overpaid an employee for 120 hours of vacation and sick leave that person was not eligible for, about $5,000. In another case a former clerk-treasurer cashed out three times their eligible vacation and compensatory leave, according to a management letter sent to the city on Aug. 8 from the office of the Washington State Auditor.
As previously reported by The News Tribune the state Auditor’s Office found “significant concerns” about the oversight and monitoring of Roy’s financial records from 2021 to 2024, a result in part of infighting and turnover among the city’s elected officials. Two City Council members are suing the city alleging that financial records have been improperly withheld and claiming they experienced retaliation.
The 2021 to 2024 accountability audit found that some officials were overpaid, but, “These matters are not included as findings in our public report … since it was not prepared for general distribution,” wrote audit manager Courtney Amonsen in the Aug. 8 management letter. The News Tribune received the letter after filing a public records request.
“The City should consult with its legal counsel to determine if it should seek repayment of any amount found to be paid in error,” Amonsen wrote.
When asked if the city would consult with legal counsel to seek repayment of the amounts listed in the letter, Mayor Kimber Ivy did not answer directly.
“The City of Roy is working to address all comments provided by the Washington State Auditor’s Office, and we are committed to strengthening our policies and practices to ensure accountability and transparency,” she said in an email to The News Tribune on Tuesday. “The City of Roy takes accountability seriously. We appreciate the Auditor’s guidance and are committed to improving our internal controls to ensure strong stewardship of taxpayer resources.”
According to the recent audit report, in 2023 the city’s general fund balance was $413,355 (a 19.3% drop from 2022). The fund balance dropped another 27.7% to $298,779 in 2024 and fell another 23.7% to $227,907 in 2025.
What did the letter say?
In the case where the city overpaid an employee for 120 hours of leave, the audit revealed the employee’s final day of full-time employment was three work days short of their one-year work anniversary. If they had worked more than one year, they would have qualified for compensation of 80 hours of vacation and 40 hours of sick leave.
“The City did not retain documentation to show how the employee’s use of sick leave was allowable per the Policy Manual. We also found the City did not retain a timesheet for this employee for the first pay period. Finally, the City did not retain payroll exception forms to show how they requested the use of leave and who reviewed/approved it to ensure it was allowable per the Policy Manual,” Amonsen wrote.
She recommended the city “retain documentation to support all employee pay,” “follow its personnel policy by only allowing cash-outs at separation” and “strengthen its internal controls monitoring employee pay, especially at separation of employment.”
Clerk-treasurers overpaid themselves, report says
As previously reported by The News Tribune, five separate people held the role of clerk-treasurer in Roy since 2023. According to the management letter, two clerks paid themselves more than they were allowed to under the city’s personnel and budget policies. They were not named in the letter. According to the 2024 final budget, the city clerk-treasurer made between $82,248 and $88,860 annually.
Although the city personnel policy allows employees to cash out up to 120 hours of unused vacation leave when they leave their job, one clerk-treasurer cashed out three times that many hours. That clerk-treasurer cashed out 240 hours of vacation and compensatory leave, totaling $10,219, before cashing out an additional 120 hours of vacation leave on their final paycheck three months later.
“Another Clerk-Treasurer did not cash out unused vacation leave at the time of separation, but instead cashed out 120 hours of vacation leave two months prior,” the letter said.
In another case, a clerk-treasurer’s pay increased 35% (about $970) each pay period during the first quarter of the year. The rate appeared to be verbally approved by management, but the city didn’t maintain documentation to show the approval, which “was about $18,000 more than the maximum amount allowed per the approved City budget,” the letter said. The next year the city budget increased the pay rate for the clerk-treasurer position to the new rate.
At one point a clerk-treasurer submitted a letter of resignation effective at the end of the month but agreed to continue to work for the city into the next month until a replacement was hired, the letter said.
“However, the employment status of this Clerk-Treasurer was not clearly established as the City did not enter into an employment contract clarifying the responsibilities in this temporary role,” according to the letter. “The Clerk-Treasurer maintained full-time employee status with the City by using accrued leave to complete their time cards to 40 hours per week.”
The person was paid $7,353 for 13.5 hours worked, in addition to 62.75 hours of vacation, 74.5 hours of sick time and 9.25 hours of holiday pay over two pay periods, according to the letter.