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2009, 11-30 Accountability Audit Report October 26, 2009 Washington State Auditor's Office Accountability Audit Report City of Spokane Valley Spokane County Report Date October 26, 2009 Report No. 1002549 ` °R"F.s; WASHINGTON Issue Date / IV CV BRIAN SNovember 30, 2009 4.0V aa9 °S i1NG J STATE AUDITOR pR OF4�` gy .A,„, J , m 1\\...... 9S'1lING'. Washington State Auditor Brian Sonntag November 30, 2009 Council City of Spokane Valley Spokane Valley, 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 Spokane Valley'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, A --)!Itok - BRIAN SONNTAG, CGFM STATE AUDITOR 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 Spokane Valley Spokane County October 26, 2009 Audit Summary 1 Related Reports 2 Description of the City 3 Audit Summary City of Spokane Valley Spokane County October 26, 2009 ABOUT THE AUDIT This report contains the results of our independent accountability audit of the City of Spokane Valley for January 1, 2008, through December 31, 2008. We evaluated internal controls and performed audit procedures on the activities of the City. We also determined whether the City complied with state laws and regulations and its own policies and procedures. In keeping with general auditing practices, we do not examine every transaction, activity or area. Instead, the areas examined were those representing the highest risk of noncompliance, misappropriation or misuse. The following areas were examined during this audit: • Cash receipting • Use of restricted funds • Disbursements/expenditures • Use of credit cards • Payroll/person nel • Taxes/assessments • Contracts/agreements • Open public meetings/records laws • Compliance with grant • Budget compliance requirements • Conflict of interest/ethics laws RESULTS In the areas we examined, the City's internal controls were adequate to safeguard public assets. The City also complied with state laws and regulations and its own policies and procedures in the areas we examined. Washington State Auditor's Office 1 Related Reports City of Spokane Valley Spokane County October 26, 2009 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 program, which is 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 Spokane Valley Spokane County October 26, 2009 ABOUT THE CITY The City of Spokane Valley, incorporated on March 31, 2003, is located in Spokane County and serves approximately 89,440 citizens. The City operates under a council- manager form of government with an elected, seven-member City Council. The Council then appoints one member as Mayor and another member as Deputy Mayor. The City's 92 employees provide building inspection, street improvement and maintenance, parks and recreation, storm water management and general administrative services. The City owns and operates CenterPlace, an event facility, 11 City parks and three City pools. The City contracts with Spokane County for many of its services including law enforcement, animal control and engineering. For fiscal year 2008, the City operated on an annual budget of approximately $93 million. ELECTED OFFICIALS These officials served during the audit period: Council: Rich Munson, Mayor Dick Denenny, Deputy Mayor Rose Dempsey Bill Gothmann Gary Schimmels Steve Taylor Diana Wilhite Note: Ian Robertson replaced Steve Taylor in August 2009. APPOINTED OFFICIALS City Manager Dave Mercier Finance Director Ken Thompson Washington State Auditor's Office 3 CITY CONTACT INFORMATION Address: City of Spokane Valley 11707 E. Sprague Avenue, Suite 106 Spokane Valley, WA 99206 Phone: (509) 921-1000 Web site: www.spokanevalley.org AUDIT HISTORY We audit the City annually. This marks the sixth audit for the City. The 2006 and 2007 audits reported a finding related to financial reporting. That finding has been resolved. Washington State Auditor's Office 4 r *01rmiti. ABOUT THE STATE AUDITOR'S OFFICE r` ���t'j 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.gov Subscription Service https://www.sao.wa.gov/EN/News/Subscriptions/ (SAO FACTS.DOC-Rev.06/09)