State Audit Gives City Good Marks For Handling Money Only Minor Problems Discovered With Spokane’s Accounting Systems
A state audit of Spokane city government suggests a few minor weaknesses but no major flaws in the way the city handles cash.
“This report indicates how well-run the finances of the city are,” said Auditor Brian Sonntag. “We found some areas, especially cash receipting, where there were ways to strengthen things.”
The audit covers 1994, and most of the accounting deficiencies cited in the audit already have been corrected, said Pete Fortin, the city’s finance director.
“We’ve taken steps basically to correct everything that we could that was important,” he said.
The audit found “weaknesses” in the way cash is handled and accounted for in the library system, the Transportation Department and Riverfront Park. Those problems could lead to theft or fraud.
Weaknesses cited in the audit include:
No library policy in place for when to waive fines and fees. Anyone can waive fees at any time, opening the door to theft and errors, the audit states. The Library Board currently is drafting a fee-and-fine waiver policy.
A library policy that waives fines and fees for staff members, which the report calls a “gift of public funds.”
Interim Library Director Aubrey George called it a long-standing policy that makes it possible for staff to review books and plan children’s programs at home.
“We don’t want to charge them fines for things they’re working on,” George said.
Sonntag plans to refer the matter to the state attorney general’s office.
Failure to make daily bank deposits of money collected at Riverfront Park, which took in $2 million in 1995. Daily deposits are required by state law.
“The law says daily deposits, and we’re going to comply with that,” said park director Hal McGlathery.
Failure to make daily deposits of cash or checks collected by the city Transportation Department. In 1995, the department took in $47,500 for maps, parking meter bags and permits. Also, cash isn’t reconciled to sales, according to the audit.
The department’s cash accounting system doesn’t reduce the risk of fraud, the audit states.
Lack of control over the money taken from parking meters. “From the time coins are removed from a meter until coin bags are picked up by Loomis, fraud or theft could occur without detection,” the audit states.
During 1995, the transportation department collected more than $960,000 in parking meter money.
In its written response, the city said a long-term project calls for switching from mechanical to electronic parking meters, which make it easier to track deposits.
Poor accounting of the value of city-owned land.
Fortin said the audit helps his staff identify risk areas they might have missed.
“They’re saying, ‘Hey. We think you should strengthen this area to avoid potential loss.’ Not that we have any real problems.”
The audit is advisory and not legally binding. Repeat violations found to involve fraud can be referred to the attorney general’s office.
, DataTimes