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Home My WebLink About03/03/2009 09 2007 State Audit - Accountability Report BUSINESS OF THE CITY COUNCIL ® YAKIMA, WASHINGTON AGENDA STATEMENT Item No. A 9 For Meeting Of: March 3, 2009 ITEM TITLE: 2007 State Audit - Accountability Report SUBMITTED BY: Finance Department CONTACT PERSON / TELEPHONE: Rita DeBord, Finance Director; ( #575 - 607044 Cindy Epperson, Deputy Director, Accounting /Budget �� ( #575 -6070) SUMMARY EXPLANATION: Attached is the last official report from the State Auditors regarding their 2007 audit of the City of Yakima. The Accountability Report contains the results of the auditor's audit of the City's compliance with state laws and regulations and the City's own policies and procedures. The Accountability Report states that, "In most areas, the City complied with state laws and regulations and its own policies and procedures. Internal controls were adequate to safeguard public assets." There were no "Findings" as 10 a result of the audit; (a "Finding" is the mechanism used to communicate a serious compliance or internal control issue.) The auditors perform three audits of the City each year; the Financial audit, the Federal Compliance audit and the Accountability audit. With this report, the auditors have now concluded their 2007 audit of the City. Resolution Ordinance Other (Specify) Report Contract Mail to (name and address): Phone: Funding Source APPROVED FOR SUBMITTAL: �� City Manager STAFF RECOMMENDATION: Accept Report BOARD /COMMISSION RECOMMENDATION: COUNCIL ACTION: III • Washington State Auditor's Office Accountability Audit Report City of Yakima Yakima County Report Date December 29, 2008 Report No. 1000706 • • Issue Date 7 C, �. � Ai ; , � C �l r i I �� February 23, 2009 L III Al + a ! 0 • _ • . . Washington State Auditor Brian Sonntag February 23, 2009 • Council City of Yakima Yakima, Washington Report on Accountability 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. In addition to this work, we also audit the City's financial statements and compliance with federal laws and regulations. The results of that audit will be included in a separately issued audit report. • Sincerely, • BRIAN SONNTAG, CGFM STATE AUDITOR • 41) Insurance Building, P.O. Box 40021 •Olympia, Washington 98504 -0021 • (360) 902 -0370 • TDD Relay (800) 833 -6388 FAX (360) 753 -0646 • http: / /www.sao.wa.gov • Table of Contents City of Yakima Yakima County December 29, 2008 Audit Summary 1 Description of the City 2 Audit Areas Examined 4 • • • Audit Summary City of Yakima Yakima County December 29, 2008 ABOUT THE AUDIT This report contains the results of our independent accountability audit of the City of Yakima. We performed audit procedures to determine whether the City complied with state laws and regulations and its own policies and procedures. We also examined City management's accountability for public resources. Our work focused on specific areas that have potential for abuse and misuse of public resources. Areas examined during the audit were selected using financial transactions from January 1, 2007, through December 31, 2007. RESULTS In most areas, the City complied with state laws and regulations and its own policies and • procedures. Internal controls were adequate to safeguard public assets. However, we noted certain issues that we communicated to City's management. We appreciate the City's commitment to resolving the issues. RELATED REPORTS Our opinion on the City's financial statements and compliance with federal program requirements is provided in a separate report, which includes the City's financial statements. CLOSING REMARKS We thank City officials and personnel for their assistance and cooperation during the audit. • • Washington State Auditor's Office 1 • • Description of the City City of Yakima Yakima County December 29, 2008 ABOUT THE CITY The City of Yakima serves approximately 83,700 citizens in Yakima County. It operates as a first class City under a council- manager form of government. The City Council consists of seven Council Members, four of whom are elected from separate districts and three are elected at large. The Council elects the mayor from within its own membership to serve a two -year term. The City provides a full range of municipal services including 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 employs approximately 695 permanent employees and 100 part-time or temporary employees. The total budget for 2007 was approximately $163 million. AUDIT HISTORY We audit the City annually. The past six audits have reported no findings with the exception of one in 2007 regarding the lack of internal controls over financial reporting. ELECTED OFFICIALS These officials served during the audit period: Mayor: Dave Edler Assistant Mayor: Neil McClure Council: Norm Johnson Ron Bonlender Susan Whitman Micah Cawley William Lover Note: Rick Ensey and Kathy Coffey replaced Ron Bonlender and Susan Whitman in January 2008. APPOINTED OFFICIALS City Manager Richard Zais, Jr. Assistant City Manager Dave Zabel! Director of Finance and Budget Rita DeBord, C.P.A. City Attorney Ray Paolella • Washington State Auditor's Office 2 ADDRESS City 129 S. 2nd Street Yakima, WA 98901 (509) 575 -6040 (509) 575 -6335 (fax) • Washington State Auditor's Office 3 Audit Areas Examined City of Yakima Yakima County December 29, 2008 In keeping with general auditing practices, we do not examine every portion of the City of Yakima's financial activities during each audit. The areas examined were those representing the highest risk of noncompliance, misappropriation or misuse. Other areas are audited on a rotating basis over the course of several years. The following areas of the City were examined during this audit period: ACCOUNTABILITY We evaluated the City's accountability and compliance with laws, regulations, contracts and grant agreements in the following areas: • Open Public Meetings Act • Utility billings and receivables • Conflict of interest/ethics • Real Estate Excise Taxes • Purchases of goods and services • Tahoma Cemetery — billings and cash • Credit cards /open accounts receipting • Travel expenses • Lion's Swimming Pool — cash receipting • Imprest and petty cash funds • Equipment Rental Department - • Payroll inventory • • • Competitive bid law • Municipal Court compliance /change orders • Cash receipting and revenues FEDERAL PROGRAMS We evaluated internal controls and tested compliance with 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. FINANCIAL AREAS .Our opinion on the City's financial statements is provided in a separate report. That report includes the City's financial statements and other required financial information. We examined the financial activity and balances of the City including: • Cash and investments • Subsequent events • Receivables • Going concern • Capital assets • Overall presentation of the financial • Long -term debt statements • Revenues • Schedule of Expenditures of Federal • Expenditures Awards • Journal entries • Washington State Auditors 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. Our mission is to work in cooperation 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 our 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 continue to refine our reporting efforts to ensure the results of our audits are useful and understandable. 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 Brian Sonntag, CGFM Chief of Staff Ted Rutt Deputy Chief of Staff Doug Cochran Chief Policy Advisor Jerry Pugnetti Director of Audit Chuck Pfeil, CPA Director of Special Investigations Jim Brittain, CPA Director for Legal Affairs Jan Jutte, CPA, CGFM Director of Quality Assurance Ivan Dansereau Local Government Liaison Mike Murphy Communications Director Mindy Chambers Public Records Officer Mary Leider Main number (360) 902 -0370 Toll -free Citizen Hotline (866) 902 -3900 Web Site www.sao.wa.aov Subscription Service https:// www. sao. wa. gov/ applications /subscriptionservices/ • (SAO FACTS.DOC - Rev. 02/09)