State auditor’s office reports no deficiencies during Adams County exit audit

The Washington State Auditor’s Office completed an exit conference with Adams County regarding a financial statement and federal grant compliance audit for the 2017 fiscal year.

The conference was held during the Aug. 27 Adams County Commissioners meeting. State Audit Lead Heather Peterson said the audit report will be published on the Auditors’ website in two weeks.

Peterson said there were no uncorrected misstatements, or material misstatements in the financial reports during the audit.

The auditor’s did not find any significant deficiencies or material weaknesses with the County’s financial statements or control over major federal programs, nor did they find any instances of noncompliance.

Peterson said the auditor’s provided exit recommendations for the county, which the agency will review in the next audit to determine if the issues were addressed and corrected.

The first recommendation concerned the county’s cash flow reconciliation process.

The auditor’s found the Treasurer’s Office bank accounts were not individually reconciled in the general ledger. Peterson explained it was difficult for the auditor’s to determine and record outstanding line items in a timely manner.

The agency recommended the county ensure all bank statements are reconciled to the general ledger monthly to make sure the amounts in the financial statements are accurate.

The auditor’s also asked the County to ensure all amounts reported in the financial statement preparation notes are complete and accurate.

Peterson said the auditor’s found two misstatements in the County’s notes.

She explained the amount of the County’s investments was overstated by $1,333,159, and the amount of investments held by the County as an agent was understated by the same amount.

The agency also found the debt service principal payments was overstated by $135,177. Peterson said was the issue caused by the Treasurer’s incorrectly including payments made during the audit period.

Adams County Treasurer Laura Danekas and Peterson confirmed that both issues were corrected during the audit process.

The auditor’s also recommended the County establish a written procurement policy that conforms to the more restrictive federal, state or local laws, and describes procurement methods meeting federal standards.

The County was also asked to adopt a conflict-of-interest policy that meets standards of conduct included in federal standards.

County Prosecutor Randy Flyckt asked Peterson if she could provide the County with an example of a conflict-of-interest policy used by other counties.

Peterson said she could send him drafts of policies the auditor’s office has looked at from other municipalities.