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Home My WebLink About2007 Accountability Audit ReportWashington State Auditor's Office Accountability Audit Report City of Port Townsend Jefferson County Report Date October 14, 2008 Report No. 1000547 Issue Date February 2, 2009 Washington State Auditor Brian Sonntag February 2, 2009 Council City of Port Townsend Port Townsend, Washington Report on Accountability Please find attached our report on the City of Port Townsend'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. The results of that audit will be included in a separately issued audit report. Sincerely, ',Id. 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 Port Townsend Jefferson County October 14, 2008 Audit Summary Description of the City Audit Areas Examined Audit Summary City of Port Townsend Jefferson County October 14, 2008 ABOUT THE AUDIT This report contains the results of our independent accountability audit of the City of Port Townsend. 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 The City complied with state laws and regulations and its own policies and procedures in the areas we examined. Internal controls were adequate to safeguard public assets. RELATED REPORTS Our opinion on the City's financial statements 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 Port Townsend Jefferson County October 14, 2008 ABOUT THE CITY The City of Port Townsend serves 8,925 citizens in Jefferson County. It is administered by a council-manager form of government with an elected, seven -member Council with a Mayor that is chosen from within the Council. Its approximate 137 employees provide an array of services including water, sewer, storm, police, parks and recreation, planning, street maintenance and construction, library and general administrative services. The City operates with an annual budget of approximately $21.6 million. AUDIT HISTORY We audit the City annually. Our last ten audit reports have contained no findings. Management has been responsive to prior audit recommendations. Audit concerns are often discussed, addressed and resolved before completion of our audit. We believe this reflects the City's assertive style in maintaining a strong financial system with adequate internal controls. ELECTED OFFICIALS These officials served during the audit period: Council Mayor Michelle Sandoval Deputy Mayor George Randels Catharine Robinson Laurie Medlicott Mark Welch David King Brent Butler APPOINTED OFFICIALS City Manager David Timmons Finance Director Michael Legarsky City Attorney John Watts City Clerk Pamela Kolacy ADDRESS City 250 Madison Street, Suite 2 Port Townsend, WA 98368 (360) 379-5047 Washington State Auditor's Office 2 Audit Areas Examined City of Port Townsend Jefferson County October 14, 2008 In keeping with general auditing practices, we do not examine every portion of the City of Port Townsend'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 in the following areas: • Accounting/financial reporting • Cash receipting • Contracts/agreements • Insurance/risk management • Investments • Open public meetings/records laws FINANCIAL AREAS • Disbursements/expenditures • Payroll/personnel • Conflict of interest/ethics laws • Police — custody of evidence • Budget compliance • Procurement (bidding/prevailing wage) 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 0 Long-term debt • Revenues 0 Overall presentation of the financial • Expenditures/expenses statements • Financial condition 0 Financial statement preparation Washington State Auditor's Office 3 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 has 300 employees who are located around the state to deliver our services effectively and efficiently. Approximately 65 percent of our staff are certified public accountants or hold other certifications and advanced degrees. Our regular 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. We also perform fraud and whistleblower investigations. In addition, we have the authority to conduct performance audits of state agencies and local governments. The results of our audits are widely distributed through a variety of reports, which are available on our Web site. 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 program to coordinate audit efficiency and to ensure high -quality audits. State Auditor Chief of Staff Chief Policy Advisor Director of Administration Director of State and Local Audits Director of Performance Audit Director of Special Investigations Director for Legal Affairs Local Government Liaison Communications Director Public Records Officer Main number Toll -free hotline for government efficiency Web Site Brian Sonntag, CGFM Ted Rutt Jerry Pugnetti Doug Cochran Chuck Pfeil, CPA Linda Long, CPA, CGFM Jim Brittain, CPA Jan Jutte Mike Murphy Mindy Chambers Mary Leider (360) 902-0370 (866) 902-3900 www.sao.wa.gov (SAO FACTS. DOC - Rev. 05/08)