The Audit reports will be released Monday morning sometime.
The Washougal City Council Meeting will be packed as people see and hear the council discuss the extensive findings of the State Auditor.
Be there.

-Gershon
Excerpts from the State Auditors Report:

The City cannot account for funds collected during several City-sponsored

community events and made questionable expenditures and gifts of public

funds.

The City by law cannot financially support an

event in which the revenue is intended to be donated to charity.

2008 Wasougalfest

2009 Riverfest

Farmers Market

Mayors Ball

 

In reviewing all payments to the nonprofit, we found several questionable payments:

Payment Description of concern Event

$5,000 For “media buy” that appears to be advertising services,

but lacks detailed support demonstrating exactly what

the City received in return.

Washougalfest

$12,500 For Christmas ornaments and posters sold at the event.

However, there was no revenue deposited at the City or

credits granted to the City for these merchandise sales.

Washougalfest

$3,400 For an insurance policy issued in the nonprofit’s name.

The contract required the nonprofit to provide its own

insurance.

Washougalfest

$30,000 For live music with no supporting documentation, such

as an invoice and/or contract, indicating this was the

contracted price. Correspondence found during the audit

indicated the band was less than this amount and this

payment included other costs, $2,000 of which the City

may have already paid for.

Washougalfest

$11,825 Three payments based on quotations or estimates rather

than actual vendor invoices. The estimates have been

altered. In addition, one of the payments appears it may

have been paid by the City directly.

Washougalfest

$800 A payment for a musician. There was no documentation

to support the payment.

Fourth of July

Total: $63,525

In addition, we noted the City used approximately $42,000 in hotel/motel taxes in 2008

and $6,126 in 2009 for the two festivals. The City did not have a lodging tax advisory

committee in place as required by state law before using these funds. The role of such a

committee is to facilitate local control over the use of lodging taxes. When a county or

city has such a committee in place, its active role minimizes the risk of inappropriate

expenditures.

Meals with unknown people:

There were an additional $3,308 in meal transactions that lacked documentation;

The City is operating under the belief that the City’s personnel policies do not apply to

elected officials.

Overall, there is a lack of enforcement and monitoring to ensure employees and officials

follow City policy.

Effect of Condition

As a result of not following its own policies, the City cannot demonstrate all expenditures

were spent for a valid public purpose.

see the full report at: http://www.sao.wa.gov/auditreports/auditreportfiles/ar1002411.pdf