Virginia Beach sleuth guards against fraud, waste, abuse

VIRGINIA BEACH

If the city had a Nancy Drew, Sharon Hayes would be it.

Hayes' job as one of the city's auditors is part detective. She has managed Virginia Beach's fraud, waste and abuse hot line since its inception in 2007.

Calls about Beach employees wasting money or abusing a program go to Hayes.

Hayes' investigative reports read like mystery novels.

There was last year's case of the trash-bin television theft, in which, records indicate, the city determined that two maintenance workers tried to walk out with a flat-screen TV in a gray garbage container. The employees were fired and the case was turned over to police, according the auditor's case result records.

Hayes also helped nab the book bandit, a city library employee who swiped donated books for personal use. The employee was allowed to resign, city records state.

More recently, she was called in for the mystery of the marina-slip forger. Beach employees who approve lease agreements for slips at the Lynnhaven Municipal Marina had forged the required city attorney signature for three years.

The employees likely were trying to speed up the approval process and the Beach didn't lose any money, City Attorney Mark Stiles said. "I think it was an effort at achieving greater efficiency," Stiles said.

The identities of the forgers remain a mystery, but Stiles said employees now are aware of what is appropriate. "I think it corrected itself," Stiles said. "We sent it to the auditor to ensure that it wasn't a broader problem."

Most recently, Hayes investigated Public Works Director Jason Cosby's use of the Beach's fitness incentive program, which provides money for employees who work out.

Cosby was documented swiping his card at facilities, then leaving. He said he was exercising outside the recreation center. Cosby was suspended from the program for a year and received written counseling from his boss.

"Our people do the right thing," Hayes said. "But if there is a problem, we're required to do something about it."

Under state law, cities with auditors must establish fraud hot lines so that employees and citizens can report tips anonymously.

Hayes and the auditor's office have closed more than 60 investigations since 2008. In about one in three cases, Hayes was unable to find any evidence of wrong doing or discovered that the claim was false.

"We don't work on hearsay," said Hayes, who used to work as an Internal Revenue Service auditor. "It has to be the facts."

Some of the substantiated cases involve fraud in the traditional sense - theft of money or equipment from the city.

Other violations are more complex, such as workers failing to report their second job or leaving early to go to them, or misusing city resources for political purposes. Sometimes, the auditor's office is called in to review a program's checks-and-balances process.

It's hard to pinpoint how much money the fraud, waste and abuse investigations have saved the city. Most cases involve a few hundred dollars.

Hayes, who devotes about three-quarters of her time to the hot l ine and these investigations, earns about $50,620 annually.

Any amount taken from the city tarnishes the Beach's reputation with its taxpayers, Hayes said.

"In this economy you want to make sure you are using resources well," she said. "I think we're sending a message to each citizen and each employee that their calls get the attention."

Councilman Jim Wood said it's worth the city investment, even if somebody stole $1.

"Every big crime starts with a small crime," Wood said.

But Hayes warns, "Don't call me over people taking pencils, unless somebody is taking reams and reams of them."

Every sleuth has her standards.

Deirdre Fernandes, (757) 222-5121, deirdre.fernandes@pilotonline.com