Auditor's office issues letter to water board

The Washington State Auditor's Office reported Dec. 15 that it was unable to audit the Whitman County Water Conservancy Board because the group failed to provide financial statements to the auditor's office.

The letter stated that the board did not submit annual financial reports during a two-year period dating Jan. 1, 2014, through Dec. 31, 2015. It noted that failure to submit the reports is a violation of state law.

“Without reporting and responding to our inquiry, the Board is unable to demonstrate accountability for its operations, and we did not have the information necessary to conduct an assessment audit,” the letter read.

The board, however, said it was told there was no need to submit a financial report as it had no financial activity during that time period.

“Our checking account is exactly the same,” said David Tysz, board secretary. “We called in, and they said we didn't have to do anything because there's no activity.”

The board did submit an annual report in 2013, and the auditor's office also issued a letter for that report on Dec. 15. The letter detailed that the board had no financial activity during that time period, including collections, amounts receivable or payable, expenditures and debt owed.

Because there were no financial activities during that time period, an audit was not performed. The letter also stated that a future on-site audit may be required if the board spends $750,000 or more of federal funds in any fiscal year. Additionally, the letter stated that if annual revenue was expected to consistently exceed $300,000, an on-site audit would be performed on a pre-determined schedule.

Tysz said he believes there to be a miscommunication between the state auditor's office and the board, as the board was told a report was not needed when there was no financial activity. He added that there has been some turnover on the board, so there could be a misunderstanding as well.

To view the letters in their entirety, go to http://www.sao.wa.gov.