A federal agency is examining spending and operations of the Columbia Development Authority, a rural Oregon agency run since 2015 by Republican legislator Greg Smith. The CDA is transforming a former military base west of Hermiston into industrial property and wildlife preserve. The review also involves the Port of Morrow in Boardman, which handles some of the financial affairs of Smith’s operation. Smith said at a recent public meeting that the review was triggered “as a result of recent activity” but he didn’t elaborate. The examination follows investigative reports by the Enterprise into Smith’s work at the agency. Records showed that Smith has been claiming work hours for the Boardman agency while away on legislative business or while serving clients of his separate private company. Those reports also showed that Smith’s agency made false claims to the federal government to justify a large pay increase for Smith. The board of the CDA recently revoked Smith’s raise with some directors saying they felt misled by Smith. The review is being conducted by the federal Office of Local Defense Community Cooperation, a part of the U.S. Defense Department. That agency awarded $795,000 to the Port of Morrow to pay for operations of the CDA, which this year will cost about $1 million. “The Office of Local Defense Community Cooperation decided to conduct a standard compliance review to look at costs charged to the project, and to substantiate the records for those costs. We are in the process of reviewing documents as part of the standard compliance review,” a Pentagon spokesman said in a written statement to the Enterprise. Smith told the Port of Morrow Commission on Nov. 13 that the review “requires the CDA go back a number of years, verify board activities, verify time cards, verify all the stuff that goes with the grant.” He said he expected the review “will go smoothly.” Eileen Hendricks, the port’s chief financial officer, told the commissioners that the port and the CDA received two requests for documents from federal reviewers. She said the initial request was for “financial documents” and the second was for “several items” such as CDA board minutes and policies dating back three years. She said the port was asked to provide some of its own policies as well. Lisa Mittelsdorf, port executive director, didn’t respond to questions about the review. Instead, the port’s attorney, Sam Tucker of Milton-Freewater, said by email that a Portland law firm, Stoel Rives, “is handling these matters.” Joe Taylor, chair of the port commission, said Thursday, Nov. 21, he knew little about the review but that it appeared routine. He said he had been told by port officials a similar review had been done earlier but he knew no details. “I don’t know exactly what triggered the review,” Taylor said, but “I don’t have any concern over it.” Port officials have not released the federal government requests to the Enterprise despite a formal public records request on Nov. 14. The Enterprise petitioned Morrow County District Attorney Justin Nelson on Wednesday, Nov. 20, for an order compelling the port to release the records. Smith, a state representative from Heppner, is employed full time as the CDA director. He declined to address written questions about the review. “The Columbia Development Authority does not have an adopted media policy,” Smith said in an email. He referred questions to three of the CDA board members. The board chair, Kim Puzey, who works as executive director of the Port of Umatilla, said Thursday that “I haven’t heard anything” about the federal review. He said Smith didn’t mention it when the two men talked about a week earlier. Lisa Mittelsdorf, executive director of the Port of Morrow, presents Greg Smith a certificate of appreciation at the dedication of a port project on Nov. 15, 2024. Smith, a Republican state representative, also is port employee. Mittelsdorf and Smith won’t discuss a federal review. (Port of Morrow Facebook) PREVIOUS COVERAGE: Turmoil continues around Smith as public officials spar over his performance Smith loses big pay increase, faces salary repayment in controversy over his conduct Greg Smith exaggerates his duty to engineer major pay raise from struggling public agency This article was originally published by the Malheur Enterprise, which shares ownership with Salem Reporter. STORY TIP OR IDEA? Send an email to Salem Reporter’s news team: [email protected]. The post Defense Department digging into finances of Boardman public agency run by Greg Smith appeared first on Salem Reporter.