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2012, 10-29 Accountability Audit Report Sept 20, 2012 Washington State Auditor's Office Accountability Audit Report City of Spokane Valley Spokane County Report Date September 20, 2012 Report No. 1008538 �pROFS WASHINGTON Issue Date a� �. 1'\ October 29, 2012 < ��` s BRIAN S 4%,„1B9q ,51. gsttrN68-0 STATE AUDITOR �-0i 4 ,/- 4"bvn. Washington State Auditor Brian Sonntag October 29, 2012 Mayor and City 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, 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 September 20, 2012 Audit Summary 1 Related Reports 2 Description of the City 3 Audit Summary City of Spokane Valley Spokane County September 20, 2012 ABOUT THE AUDIT This report contains the results of our independent accountability audit of the City of Spokane Valley from January 1, 2011 through December 31, 2011. 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 period: • Financial condition • Compliance with grant • Cost allocations requirements • Parks and Recreation Department • Procurement (bidding) financial operations • Payroll/personnel • Use of restricted funds • Payments/expenditures • Taxes/assessments • Budget compliance 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 September 20, 2012 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 programs, which are listed in the Federal Summary section of the financial statement and single audit report. That report includes a federal finding regarding weaknesses in internal controls and noncompliance with suspension and debarment requirements in its Energy Efficiency Block Grant. Washington State Auditor's Office 2 Description of the City City of Spokane Valley Spokane County September 20, 2012 ABOUT THE CITY The City of Spokane Valley, incorporated on March 31, 2003, serves approximately 90,500 Spokane County residents. It provides an array of services including building inspection, street improvement and maintenance, parks and recreation, storm water management and general administrative services. The City also owns and operates CenterPlace, an event facility, 11 parks and three pools. For many of its services the City contracts with Spokane County including law enforcement, animal control and engineering. An elected, seven-member Council governs the City. The Council appoints one member to serve as Mayor and another member to serve as Deputy Mayor. In addition, the Council appoints a City Manager to oversee the City's daily operations and its 90 employees. For fiscal year 2011, the City operated on an annual budget of approximately $65 million. ELECTED OFFICIALS These officials served during the audit period: Mayor and City Council: Tom Towey, Mayor Gary Schimmels, Deputy Mayor Brenda Grasse) Dean Grafos Rose Dempsey Bob McCaslin Bill Gothmann Note: Arne Woodard replaced Rose Dempsey in April 2011. Chuck Hafner replaced Bob McCaslin in May 2011. Ben Wick replaced Bill Gothmann in January 2012. APPOINTED OFFICIALS City Manager Mike Jackson Finance Director Ken Thompson City Attorney Cary Driskell Note: Mark Calhoun replaced Ken Thompson in July 2011. 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 Website: www.spokanevalley.org AUDIT HISTORY We audit the City annually. The City has been free of accountability findings since its inception in 2003. Washington State Auditor's 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 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 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 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 Performance Audit Larisa Benson 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 Website www.sao.wa.gov Subscription Service https://www.sao.wa.gov/EN/News/Subscriptions/ (SAO FACTS.DOC-Rev.09/11)