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HomeMy WebLinkAbout03/07/2017 09 Washington State Auditor Report on Financial Statements and Federal Single Audit of the City of Yakima for 2015 , 7/ - 4'% xs .1 \,,,i,s s, _'- r n.. BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9. For Meeting of: March 7, 2017 ITEM TITLE: Washington State Auditor Report on Financial Statements and Federal Single Audit of the City of Yakima for 2015 SUBMITTED BY: Tara Lewis, Interim Director of Finance and Budget SUMMARY EXPLANATION: Attached for Council's information is the Washington State Auditor Report on the Financial Statements and Federal Single Audit of the City of Yakima for 2015. The Report is organized into several sections as follows: • Schedule of Findings and Questioned Costs o Section I — Summary of Auditor's Results • Financial Statements —the auditors noted "no instances of noncompliance that were material to the financial statements of the City."An unmodified opinion was issued on the "fair presentation of the financial statements...in accordance with accounting principles generally accepted in the United States of America (GAAP)." • Federal Awards —the auditors found "no deficiencies in the design or operation of internal control over major federal programs" and an unmodified opinion was issued on the City's compliance with its major federal programs. o Section II — Financial Statement Findings • None reported. o Section III — Federal Award Findings and Questioned Costs • None reported. • Summary Schedule of Prior Audit Findings o There have been no findings from Financial Statement audits in recent years. o Federal Audit findings from the 2014 report were noted as "fully corrected" on the 2015 report. • Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and other Matters based on an Audit of Financial Statements Performed in accordance with Government Audit Standards • Independent Auditor's Report of Compliance for each Major Federal Program and Report on Internal Control over Compliance in accordance with the Uniform Guidance • Independent Auditor's Report on Financial Statements • Financial Section o This section comprises most of the City of Yakima's Comprehensive Annual Financial Report (CAFR)for 2015. It is omitted from this presentation due to the length of the document which is over 100 printed pages. The full CAFR is located on the City's web site under Finance Department, Financial Reports, 2015 CAFR. (Please contact the Finance Office if you would like a printed copy of the CAFR.) • About the State Auditor's Office ITEM BUDGETED: NA STRATEGIC PRIORITY: Public Trust and Accountability APPROVED 0 FOR T City SUBMITTAL: Manager APPROVED FOR SUBMITTAL: STAFF RECOMMENDATION: Accept Report BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type 2015 Washington State Auditor Report on Financial 2!9!2017 exhibit Statements and Federal Single Audit L 'y Washington State Auditor's Office Government that works for citizens Financial Statements and Federal Single Audit Report City of Yakima Yakima County For the period January 1, 2015 through December 31, 2015 EPW1 El Published September 26, 2016 ti . Report No. 1017574 T p! (' ) -'` Washington State Auditor's Office September 26, 2016 Mayor and City Council City of Yakima Yakima, Washington Report on Financial Statements and Federal Single Audit Please find attached our report on the City of Yakima's financial statements and compliance with federal laws and regulations. We are issuing this report in order to provide information on the City's financial condition. Sincerely, /,,i Y KA-E'-y TROY KELLEY STATE AUDITOR OLYMPIA, WA Insurance Building,P.O.Box 40021 L Olympia,Washington 98504-0021 J(360)902-0370 L TDD Relay(800)833-6388 TABLE OF CONTENTS Schedule Of Findings And Questioned Costs 4 Summary Schedule Of Prior Audit Findings 6 Independent Auditor's Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards 8 Independent Auditor's Report On Compliance For Each Major Federal Program And Report On Internal Control Over Compliance In Accordance With The Uniform Guidance 11 Independent Auditor's Report On Financial Statements 14 Financial Section 18 About The State Auditor's Office 113 Washington State Auditor's Office Page 3 SCHEDULE OF FINDINGS AND QUESTIONED COSTS City of Yakima Yakima County January 1, 2015 through December 31, 2015 SECTION I — SUMMARY OF AUDITOR'S RESULTS The results of our audit of the City of Yakima are summarized below in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Financial Statements We issued an unmodified opinion on the fair presentation of the financial statements of the governmental activities,the business-type activities, each major fund and the aggregate remaining fund information in accordance with accounting principles generally accepted in the United States of America (GAAP). Internal Control over Financial Reporting: • Significant Deficiencies: We reported no deficiencies in the design or operation of internal control over financial reporting that we consider to be significant deficiencies. • Material Weaknesses: We identified no deficiencies that we consider to be material weaknesses. We noted no instances of noncompliance that were material to the financial statements of the City. Federal Awards Internal Control over Major Programs: • Significant Deficiencies: We reported no deficiencies in the design or operation of internal control over major federal programs that we consider to be significant deficiencies. • Material Weaknesses: We identified no deficiencies that we consider to be material weaknesses. We issued an unmodified opinion on the City's compliance with requirements applicable to each of its major federal programs. Washington State Auditor's Office Page 4 We reported no findings that are required to be disclosed in accordance with 2 CFR 200.516(a). Identification of Major Federal Programs: The following programs were selected as major programs in our audit of compliance in accordance with the Uniform Guidance. CFDA No. Program or Cluster Title 14.218 CDBG—Community Development Block Grants/Entitlement Grants 20.507 Federal Transit—Formula Grants The dollar threshold used to distinguish between Type A and Type B programs, as prescribed by the Uniform Guidance, was $750,000. The City did not qualify as a low-risk auditee under the Uniform Guidance. SECTION II — FINANCIAL STATEMENT FINDINGS None reported. SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None reported. Washington State Auditor's Office Page 5 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS City of Yakima Yakima County January 1, 2015 through December 31, 2015 This schedule presents the status of findings reported in prior audit periods. The status listed below is the representation of the City of Yakima. The State Auditor's Office has reviewed the status as presented by the City. Audit Period: Report Ref. No: Finding Ref. No: CFDA Number(s): 1/1/2014— 12/31/2014 1015315 2014-001 14.218 Federal Program Name and Granting Pass-Through Agency Name: NA Agency: U.S. Department of Housing and Urban Development, Office of Community Planning and Development Finding Caption: The City's internal controls were not adequate to ensure compliance with Federal Accountability and Transparency Act(FFATA) reporting requirements. Background: The Federal Funding Accountability and Transparency Act of 2006 requires direct recipients of federal awards to report subawards over$25,000. They must report each subaward using the federal government's online system by the end of the month following the month in which it was granted. In 2014, the City entered into two contracts of $50,000 and $75,000. The City did not have controls in place to ensure the required reports were submitted. We consider the control deficiency to be a material weakness. Status of Corrective Action: X Fully ❑ Partially [' Finding is considered no Corrected Corrected ['Not Corrected longer valid Corrective Action Taken: Upon discovery of the failure to report on the FFATA website, the City immediately reported all of its sub-recipients of federal grant funds. We will continue to do so. Grant staff attend annual grant trainings provided locally and the City has relied on such training to keep informed of new requirements. But the local training did not cover the new FFATA rules in a timely manner. Staff will no longer rely on the local training alone, but will access other available resources to learn about new requirements in the future. Washington State Auditor's Office Page 6 Audit Period: Report Ref. No: Finding Ref. No: CFDA Number(s): 1/1/2014— 12/31/2014 1015315 2014-002 NA Federal Program Name and Granting Pass-Through Agency Name: NA Agency: NA Finding Caption: City of Yakima's internal controls over financial statement preparation are inadequate to ensure accurate and complete reporting. Background: We identified the following deficiencies in internal controls that, when taken together, represent a material weakness: • City personnel preparing the financial statements did not correctly apply capital asset reporting requirements using current guidance under Generally Accepted Accounting Principles (GAAP). • Although the City independently reviewed the financial statements prepared, the review was not effective or timely to ensure the financial statements were accurate prior to the audit. • The City's process to prepare the Schedule of Expenditures of Federal Awards (SEFA)is not designed to identify federal loans that should be reported on the schedule. Additionally,the City submitted its financial statements to our office 51 days after the reporting deadline as required by State law. Status of Corrective Action: X Fully ❑ Partially [' Finding is considered no Corrected Corrected ['Not Corrected longer valid Corrective Action Taken: Capital assets now report correctly on the Governmental Activities Statement of Net Position, a very simple fix as they were reported correctly in the notes but didn't roll up correctly on the statements. The Streets Capital fund will now correctly report an assigned balance rather than unassigned. Regarding the SEFA, a more thorough review of all grants and loan proceeds is conducted to ensure federal funding is not overlooked. The City continues to update and improve our account mapping within the new financial software and the capital assets processes that caused delays in the prior year. Newer staff was trained on various processes, which enabled our annual financial report for 2015 to be filed within the 150 day requirement. With new staff doing the basic financial statement preparation, the Financial Services Manager and Director of Finance and Budget were both able to review the end product in a timely fashion. We are looking at software that enables collaborative input and review of financial statement charts and documents which would streamline the CAFR preparation and review process, allowing for more efficient completion and higher degree of accuracy. Washington State Auditor's Office Page 7 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS City of Yakima Yakima County January 1, 2015 through December 31, 2015 Mayor and City Council City of Yakima Yakima, Washington We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities,the business-type activities, each major fund and the aggregate remaining fund information of the City of Yakima, Yakima County, Washington, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated September 19,2016. As discussed in Note 13 to the financial statements, during the year ended December 31, 2015,the City implemented Governmental Accounting Standards Board Statement No. 68,Accounting and Financial Reporting for Pensions an amendment of GASB Statement No. 27. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees,in the normal course of performing their assigned functions,to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City's financial statements will not be prevented, or detected and Washington State Auditor's Office Page 8 corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. In addition, we noted certain matters that we have reported to the management of the City in a separate letter dated September 19, 2016. COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. However, Washington State Auditor's Office Page 9 this report is a matter of public record and its distribution is not limited. It also serves to disseminate information to the public as a reporting tool to help citizens assess government operations. /°111 TROY KELLEY STATE AUDITOR OLYMPIA, WA September 19, 2016 Washington State Auditor's Office Page 10 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND REPORT ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE City of Yakima Yakima County January 1, 2015 through December 31, 2015 Mayor and City Council City of Yakima Yakima, Washington REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM We have audited the compliance of the City of Yakima, Yakima County, Washington, with the types of compliance requirements described in the U.S. Office of Management and Budget(OMB) Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended December 31, 2015. The City's major federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Management's Responsibility Management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. Washington State Auditor's Office Page 11 An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination on the City's compliance. Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2015. REPORT ON INTERNAL CONTROL OVER COMPLIANCE Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program in order to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. We did not identify any deficiencies Washington State Auditor's Office Page 12 in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of this Report The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. However, this report is a matter of public record and its distribution is not limited. It also serves to disseminate information to the public as a reporting tool to help citizens assess government operations. X ! I TROY KELLEY STATE AUDITOR OLYMPIA, WA September 19, 2016 Washington State Auditor's Office Page 13 INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS City of Yakima Yakima County January 1, 2015 through December 31, 2015 Mayor and City Council City of Yakima Yakima, Washington REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Yakima, Yakima County, Washington, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed on page 18. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether Washington State Auditor's Office Page 14 due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Yakima, as of December 31, 2015, and the respective changes in financial position and, where applicable, cash flows thereof, and the budgetary comparison for the General fund, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Matters of Emphasis As discussed in Note 13 to the financial statements, in 2015, the City adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions an amendment of GASB Statement No. 27. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 20 through 34, information on postemployment benefits other than pensions on page 99 through 102 and pension plan information on pages 103 through 107 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of Washington State Auditor's Office Page 15 management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). This schedule is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion,the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated September 19, 2016 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an Washington State Auditor's Office Page 16 integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. / / / TROY KELLEY STATE AUDITOR OLYMPIA, WA September 19, 2016 Washington State Auditor's Office Page 17 FINANCIAL SECTION City of Yakima Yakima County January 1, 2015 through December 31, 2015 REQUIRED SUPPLEMENTARY INFORMATION Management's Discussion and Analysis —2015 BASIC FINANCIAL STATEMENTS Statement of Net Position—2015 Statement of Activities—2015 Balance Sheet—Governmental Funds —2015 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position—2015 Statement of Revenues, Expenditures and Changes in Fund Balance—Governmental Funds—2015 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities—2015 Statement of Revenues, Expenditures and Changes in Fund Balances—Budget and Actual —General Fund—2015 Statement of Net Position—Proprietary Funds—2015 Statement of Revenues, Expenses and Changes in Fund Net Position—Proprietary Funds —2015 Statement of Cash Flows —2015 Statement of Net Position—Fiduciary funds—2015 Statement of Changes in Net Position—Fiduciary Funds—2015 Notes to the Financial Statements —2015 REQUIRED SUPPLEMENTARY INFORMATION Information on Postemployment Benefits Other Than Pensions —2015 Schedule of Employer Contributions —2015 Schedule of Funding Progress—Other Postemployment Benefits and Pensions—2015 Schedule of Contributions and Proportionate Share of the Net Position Liability— PERS 1, PERS 2 & 3, PSERS, LEOFF 1 and LEOFF 2 —2015 Washington State Auditor's Office Page 18 SUPPLEMENTARY AND OTHER INFORMATION Schedule of Expenditures of Federal Awards —2015 Notes to the Schedule of Expenditures of Federal Awards —2015 Washington State Auditor's Office Page 19 ABOUT THE STATE AUDITOR'S 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 to achieve our vision of government that works for citizens, by helping governments work better, cost less, deliver higher value, and earn greater public trust. In fulfilling our mission to hold state and local governments accountable for the use of public resources, we also hold ourselves accountable by continually improving our audit quality and operational efficiency and developing highly engaged and committed employees. 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. 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 as well as fraud, state whistleblower and citizen hotline investigations. The results of our work are widely distributed through a variety of reports, which are available on our website and through our free, electronic subscription service. We take our role as partners in accountability seriously, and provide training and technical assistance to governments, and have an extensive quality assurance program. Contact information for the State Auditor's Office Public Records requests PublicRecords@sao.wa.gov Main telephone (360) 902-0370 Toll-free Citizen Hotline (866) 902-3900 Website www.sao.wa.gov Washington State Auditor's Office Page 113