Large state agencies will get more in-depth reviews and smaller agencies will get more frequent accountability audits thanks to a boost in funding included in the supplemental state budget approved Thursday.The Office of the Washington State Auditor requested an additional $700,000 to support accountability audit work, and the Legislature agreed. Accountability audits are a specific type of audit that evaluate whether there is reasonable assurance the state agency adhered to applicable federal or state laws, regulations and its own policies and procedures, in addition to accounting for public resources.
Plenty of attention surrounds a new Governmental Accounting Standards Board (GASB) statement in the year it is implemented. Then we tend to forget about them in subsequent years. Not all GASB statements are relevant or material for all governments in the year they are implemented, but all governments should continue to monitor them.
A timely example is GASB Statement No. 45, Accounting and Financial Reporting by Employers for OPEB. When preparing for the 2018 implementation of GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which updates GASB 45, we asked questions such as “Who uses the State Actuary’s online tools for calculating OPEB liability under GASB 45?” and “How material are those governments’ Other Post-Employment Benefits (OPEB) liabilities?” Continue reading
Part of management’s responsibility for financial reporting and safeguarding of public resources is to regularly evaluate its financial condition and develop plans to address any serious issues. For financial reporting, both the Budgeting, Accounting and Reporting System (BARS) Manual and the Governmental Accounting Standards Board (GASB) Statement No. 56 require disclosure in the notes to the financial statements regarding any situations that give rise to a substantial doubt about the government’s ability to continue to operate, along with management’s plans to address the situation.
While the BARS Manual and GASB standards address requirements for financial statement preparers, professional standards from the American Institute of Certified Public Accountants (AICPA) address requirements for auditors. These standards require the auditor to independently consider the government’s financial condition and any disclosures to determine whether the financial statements are fairly presented. This existing responsibility was underscored by the AICPA’s new Statement on Auditing Standards No. 132, which is intended to bring more consistency and greater clarity to how auditors approach this important topic. Continue reading
In the Winter Audit Connection, there was an article clarifying the differences between brand name specification versus sole source procurement. There are additional requirements for brand name procurement when federal funding is used. Continue reading
From left to right: Laura Marrone (Admin Tech), Rose Lauer (Assistant Office Manager), Commissioner/President Jerry Thornton, Sr., State Auditor Pat McCarthy, Commissioner John Thompson, Shane Young (General Manager) & Commissioner/Secretary, Renea Blanchette
Earlier this week, State Auditor Pat McCarthy recognized the King County Water District No. 125 for their commitment to making government work better and promoting a culture of accountability with a State Auditor’s Office Stewardship Award. Continue reading
The Office of the Washington State Auditor is a national leader in developing and applying tools to assess and display information about local governments’ financial condition. That’s why the Pew Charitable Trust has invited the Office of the Washington State Auditor to speak at its State and Local Fiscal Health Workshop on February 27 in Boston, Massachusetts.
The workshop will bring together state officials from across the country to help staff at the Massachusetts Division of Local Services as they work to improve the state’s municipal fiscal data dashboard and to allow officials from all the states to exchange ideas.
Washington’s Financial Intelligence Tool (FIT), a unique local fiscal health tool and dashboard, is of particular interest to the participants as they seek to improve their own fiscal data visualizations. Designed to help local governments understand information about their financial health, FIT received the 2016 National State Auditors’ Association (NSAA) Award for Excellence in Accountability. Since then, local governments across Washington have used FIT to gain insight into their financial condition and make sound fiscal decisions based on that data.
State Auditor Pat McCarthy, County Treasurer Vickie Clelland, Financial Management Officer Heidi Penner, County Auditor Robert Waymire
State Auditor Pat McCarthy recognized Skamania County’s dedication to making government work better and its commitment to the audit process today with a State Auditor’s Office Stewardship Award. Specifically, the County Auditor’s Office, Treasurer’s Office and Office of Financial Management have worked together to improve County processes and strengthen internal controls over the past several years. Continue reading
The Performance Center recently released a new resource to help school districts using the F196 reporting model improve their accounting and financial reporting.
The “Checklist for Reviewing Financial Statement Reporting” addresses processes needed for the year-end review of financial statements, notes and supplemental schedules. Continue reading
Many local governments use a third-party receipting vendor to provide electronic payment options to their constituents. Best practice – and state law (RCW 39.58.080) – require local governments to have all funds directly deposited into their Public Deposit Protection Commission (PDPC)-approved bank account. Continue reading
School districts have asked the State Auditor’s Office for advance notice of what areas upcoming audits will emphasize. The following list identifies areas auditors might focus on to help districts prepare for audits examining fiscal year 2017. These areas are general in nature, and as always the specific areas audited will be determined by a risk-based analysis. Local audit teams also are available all year to answer technical questions and point to additional guidance on specific audit areas. Continue reading