HomeMy WebLinkAbout12/10/2013 08 Washington State Auditor's 2012 Accountability Audit ReportBUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting of: 12/10/2013
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ITEM TITLE: Washington State Auditor's 2012 Accountability Audit Report
for the City of Yakima
SUBMITTED BY: Cindy Epperson, Director of Finance and Budget
SUMMARY EXPLANATION:
The Washington State Auditor's Office (SAO) prepares three separate reports annually for the
City. The Report on Financial Statements and the Federal Single Audit Report for 2012 were
released on September 27, 2013, and were reported to Council on the October 15, 2013
agenda.
The third and final report is the Accountability Audit Report released on December 2, 2013
(attached). The purpose of the Accountability Audit is to evaluate internal controls and the
City's compliance with state laws and regulations and its own policies and procedures. The
auditors had a few recommendations for improvement, which have been communicated in a
separate letter to management, but there were no "findings" which are significant, reportable
internal control weaknesses or areas of non-compliance.
This concludes the 2012 audit, and the City had "clean" opinions and no material findings in all
three reports.
Resolution: Ordinance:
Other (Specify):
Contract: Contract Term:
Start Date: End Date:
Item Budgeted: NA Amount:
Funding Source/Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
Public Trust and Accountability
APPROVED FOR
SUBMITTAL:
RECOMMENDATION:
Accept Report
City Manager
ATTACHMENTS:
Description Upload Date
Accountability Report 12/2/2013
Type
Cover Memo
Washington State Auditor's Office
Accountability Audit Report
Issue Date
December 2, 2013
City of Yakima
Yakima County
Report Date
November 8, 2013
Report No. 1010779
WASHINGTON
TROY KELLEY
STATE AUDITOR
Washington State Auditor
Troy Kelley
December 2, 2013
Mayor and City Council
City of Yakima
Yakima, Washington
Report on Accountability
We appreciate the opportunity to work in cooperation with your City to promote accountability,
integrity and openness in government. The State Auditor's Office takes seriously our role to
advocate for government accountability and transparency and to promote positive change.
Please find attached our report on the City of Yakima's accountability and compliance with state
laws and regulations and its own policies and procedures. Thank you for working with us to
ensure the efficient and effective use of public resources.
Sincerely,
TROY KELLEY
STATE AUDITOR
Insurance Building, P.O. Box 40021 • Olympia, Washington 98504-0021 • (360) 902-0370 • TDD Relay (800) 833-6388
Table of Contents
City of Yakima
Yakima County
November 8, 2013
Audit Summary 1
Related Reports 3
Description of the City 4
Audit Summary
City of Yakima
Yakima County
November 8, 2013
ABOUT THE AUDIT
This report contains the results of our independent accountability
Yakima from January 1, 2012 through December 31, 2012.
We evaluated internal controls and performed audit procedures on
City. We also determined whether the City complied with state laws
its own policies and procedures.
In keeping with general auditing practices, we do not examine every
or area. Instead, the areas examined were those representing
noncompliance, misappropriation or misuse. The following
this audit period:
• Third -party cash receipting
• Cost allocation plans — central
service and utility customer service
• Use of utility tax for police
purchases
• Inter -fund loans
• Building permits
• Police Department -Municipal Jail —
billings, citations and cash
receipting
• Bus passes
• Sale of city street and public
hearing notice
RESULTS
audit of the City of
the activities of the
and regulations and
areas we
transaction, activity
the highest risk of
re examined during
• Credit card usage
• Fuel usage
• Self-insurance medical/dental plan
• Yakima Consortium for Regional
Public Safety and its formation as a
legal entity
• Citizen concerns
• Procurement — on-call contracts, sole
source contracting
• Convention Center cash receipting
• City parks — cash receipting —
Kiwanis and Fisher golf course
In most areas, the City complied with state laws and regulations and
procedures.
However, we noted certain matters that we communicated to City
appreciate the City's commitment to resolving those matters.
its own policies and
management. We
Washington State Auditor's Office
1
Related Reports
City of Yakima
Yakima County
November 8, 2013
FINANCIAL
Our opinion on the City's financial statements and compliance with federal grant
program requirements is provided in a separate report, which includes the City's
financial statements.
FEDERAL GRANT PROGRAMS
We evaluated internal controls and tested compliance with the federal program
requirements, as applicable, for the City's major federal programs, which are listed in the
Federal Summary section of the financial statement and single audit report.
Washington State Auditor's Office
2
Description of the City
City of Yakima
Yakima County
November 8, 2013
ABOUT THE CITY
The City of Yakima serves approximately 92,620 citizens in Yakima County. It operates
as a first class city under the council-manager form of government. The City Council
consists of seven Council Members, four of whom are elected from separate districts,
and three elected at large. The Council, from within its own membership, chooses the
Mayor every two years. The City provides a full range of municipal services. These
services include public safety (police, fire, Municipal Court), public improvements
(streets, traffic signals, storm sewer), sanitation (solid waste disposal, sewer utility),
water utility, community development, parks, recreation, code enforcement and general
administrative services. The City has approximately 770 employees. For fiscal year
2012, the City's total budget was approximately $212 million.
ELECTED OFFICIALS
These officials served during the audit period:
Mayor and City Council: Micah Cawley, Mayor
Kathy Coffey
Bill Lover
Rick Ensey
Maureen Adkison
Dave Ettl
Sara Bristol
Note: Dave Edler was replaced by Sara Bristol in January 2012.
APPOINTED OFFICIALS
City Manager
Director of Finance and Budget
Michael Morales (interim January
through June 2012)
Tony O'Rourke (effective July 2012)
Cindy Epperson
Washington State Auditor's Office
3
CITY CONTACT INFORMATION
Address: City of Yakima
129 N. Second Avenue
Yakima, WA 98901-2720
Phone: (509) 576-6644
Website: www.ci.yakima.wa.us
AUDIT HISTORY
We audit the City annually. The past six audits reported one accountability finding. The
2009 audit reported a finding regarding lack of internal controls over equipment rental
inventory. This finding has been resolved.
Washington State Auditor's Office
4
ABOUT THE STATE AUDITORS OFFICE
The State Auditor's Office is established in the state's Constitution and is part of the executive
branch of state government. The State Auditor is elected by the citizens of Washington and
serves four-year terms.
We work with our audit clients and citizens as an advocate for government accountability. As
an elected agency, the State Auditor's Office has the independence necessary to objectively
perform audits and investigations. Our audits are designed to comply with professional
standards as well as to satisfy the requirements of federal, state, and local laws.
The State Auditor's Office employees are located around the state to deliver services effectively
and efficiently.
Our audits look at financial information and compliance with state, federal and local laws on the
part of all local governments, including schools, and all state agencies, including institutions of
higher education. In addition, we conduct performance audits of state agencies and local
governments and fraud, whistleblower and citizen hotline investigations.
The results of our work are widely distributed through a variety of reports, which are available
on our Web site and through our free, electronic subscription service.
We take our role as partners in accountability seriously. We provide training and technical
assistance to governments and have an extensive quality assurance program.
State Auditor
Chief of Staff
Director of Performance and State Audit
Director of Local Audit
Deputy Director of State Audit
Deputy Director of Local Audit
Deputy Director of Local Audit
Deputy Director of Quality Assurance
Deputy Director of Communications
Local Government Liaison
Public Records Officer
Main number
Toll-free Citizen Hotline
Website
Troy Kelley
Doug Cochran
Chuck Pfeil, CPA
Kelly Collins, CPA
Jan M. Jutte, CPA, CGFM
Sadie Armijo
Mark Rapozo, CPA
Barb Hinton
Thomas Shapley
Mike Murphy
Mary Leider
(360) 902-0370
(866) 902-3900
www.sao.wa.gov
Subscription Service www.sao.wa.gov/EN/News/Subscriptions