SANDAG addresses toll road failures

Backend accounting system blamed for 55,000 compromised accounts; new systems to be installed; board members question cost, scope of work, responsibility for contractors

SANDAG board members Ryan Keim of Oceanside, left, and Ed Musgrove of San Marcos question staff about the failures of the State Route 125 system during Friday’s meeting. Steve Puterski image

COUNTY — Pointed questions and concerns were on display as the San Diego Association of Governments Board of Directors addressed the ongoing issues with toll road accounts.

During Friday’s meeting, the board addressed 55,000 compromised accounts, according to Chief Financial Officer André Douzdjian. He said the backend software is the source of inaccurate revenue billing and collection as the agency discovered in August approximately 55,000 customer accounts were impacted totaling $87,000.

As of Friday, 45,000 accounts had been reconciled with 10,000 outstanding accounts totaling about $8,700, he said.

“It was found certain types of transactions were involved with improper accounting,” Douzdjian explained. “It was the flow of transactions to the accounting that was not working. No doubt we have deficiencies on the back end of the software.”

Jennifer Farr, an external auditor with DavisFarr LLP, said her company will begin its auditing work on the 10,000 accounts on Monday after delays in receiving information from SANDAG. Regardless, the accounting software and system, which is managed by ETAN Technologies, will be replaced, although it is not certain when.

Additionally, the issue is also the central complaint in a lawsuit filed by Lauren Warrem, who filed the suit on Nov. 7, after she said she was fired by Douzdjian and Chief Executive Officer Hasan Ikhrata for raising concerns about the toll road in October.

In mid-October, Warrem met with Douzdjian, Leeanne Wallace, SANDAG’s outgoing director of accounting and finance and Farr on Oct. 6 to discuss a report on the toll system, according to the lawsuit. Days later, Warrem pressed Wallace to disclose the situation, and Warrem was then cut out of further discussions on the toll road, the lawsuit states. She was then fired in November and filed suit.

“It’s unfortunate that it took the firing of a hard-working, dedicated public servant to force this agency to publicly acknowledge and address its failures,” Warrem’s attorney, Josh Gruenburg said.

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