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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

State Praises City For Finance Practices

The city of Spokane received a virtually spotless report from the state Auditor’s Office, which praised the city for its diligence in managing its 1999 finances.

The only blemish is a finding related to how the city administers federal grants, but “it is exemplary for an entity the size and complexity of the City of Spokane to have only one finding,” the report states.

The report also commends the city for attending to issues it found in previous audits, specifically those dealing with how Spokane handled cash receipts in the police, parking and municipal court departments. The city has since tightened its controls, the report says.

The one area of concern was related to how the city charged indirect costs to grants and programs from the U.S. Department of Housing and Urban Affairs. The audit said the city’s application of $76,971 to cover indirect costs did not comply with federal regulations.

The audit report recommended that the city discuss the charges with HUD, and City Manager Hank Miggins said the city was doing that.