Auditor critical of city, again

The State Auditor’s Office has found that the city of Grand Coulee does not have adequate control of its financial operations, according to its latest audit report.

A “finding” report stated that the city placed “public resources at risk of loss or misappropriation.”

The audit report, released Monday, had said in a prior report that the city did not have adequate controls over financial operations, and the current audit found the city has not addressed many of the conditions, and found additional concerns as well.

The audit was for the period of Jan. 1, 2013 through Dec. 31, 2013.

The report stated: “City council, the mayor, state and federal agencies, and the public, rely on the information included in the financial statements and reports to make decisions. It is the responsibility of the city to design and follow internal controls that provide reasonable assurance regarding the preparation of financial reporting.”

The audit report stated the following deficiencies: 1) The city clerk/treasurer did not complete monthly reconciliations and entries or complete the reports for submission of the annual report; 2) City management did not take appropriate action to ensure the city’s financial statements were prepared.

The city had previously used an outside contractor to prepare the annual report, but that person was not available to prepare the 2013 annual report.

The report further stated that the auditor was unable to express an opinion on the city’s financial statements for 2013, and accordingly they were not included in the report.

“We strongly recommend the city’s council take action to establish policies, procedures, and adequate oversight to comply with financial reporting requirements,” the report concluded.