HomeMy WebLinkAbout03/07/2017 09 Washington State Auditor Report on Financial Statements and Federal Single Audit of the City of Yakima for 2015 ,
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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
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Published September 26, 2016 ti .
Report No. 1017574 T p!
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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