Conservation district under state audit scrutiny

The Washington State Auditors Office recently released the results of an independent accountability audit for the Wahkiakum Conservation District (WCD) for January 1, 2003, through December 31, 2008.

The auditor’s office looked at the district’s internal controls to determine if it had complied with state laws and regulations and its own policies and procedures.

The report said auditors were unable to issue a finding on the WCD’s financial statements.

“We were not able to obtain statements supporting the financial activities of the Wahkiakum Conservation District for the years ending December 31, 2005, 2004 and 2003, nor were we able to satisfy audit requirements by other auditing procedures,” the audit said.

The report found deficiencies in WCD’s internal controls and noncompliance with state laws that require the preparation of an annual financial report for all three years. The report also said WCD’s internal controls over financial reporting are currently inadequate.

State auditors said they typically audit the WCD every three years. In their prior two audits, covering 1998-1999 and 2000-2002 they noticed significant problems with WCD’s record-keeping which has continued to prevent them from expressing an opinion on the accuracy and completeness of the WCD’s financial reports.

The auditors also reported a finding on a lack of internal controls over grant reimbursements and concerns regarding WCD’s bank reconciliation procedures.

Their 2009 audit found the WCD had made improvements in the documentation it retains to support grant reimbursements and in payroll documentation.

According to the auditor report, “The District experienced prolonged vacancies in key positions which led to significant delays in processing accounting data.” These delays also limited the availability of information needed by the state to resolve audit issues.

The report also said the district, due to lack of management, was unable to prepare financial statements. The WCD also lacked established processes for staff to follow to ensure that the proper accounting and reporting of public funds was available to auditors. Any new staff also lacked the technical training and experience needed to produce accurate accounting and reports of the District’s financial information.

Additionally, auditors also found that WCD supervisors and the manager failed to take an active role in performing key financial reconciliations after the former district manager left, nor did they try. For this work, they relied on staff that did not have the technical knowledge and skills to adequately perform these duties.

Concluding its report, the state auditors said they had postponed issuing a financial statement audit to give district management time to address staffing issues and correct its paperwork.

The Wahkiakum Conservation District is supported primarily through state grants. For the year 2008, the district operated with an annual budget of $550,000.

The district was established to promote conservation and education to residents throughout Wahkiakum County. The district has a five-member board that oversees a manager and three employees. The manager oversees daily operations and employees.