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State auditor gives Walla Walla County clean financial opinion but flags federal subrecipient monitoring for rental assistance
Summary
State Auditor Ruby Chang reported an unmodified opinion on the county’s 2023 financial statements and accountability audit but issued a modified/adverse finding on federal grant compliance related to subrecipient monitoring for rental assistance under the Coronavirus relief program.
The Walla Walla County Board of Commissioners received the results of the county’s fiscal year 2023 audits on March 25 from Ruby Chang of the Washington State Auditor’s Office. Chang said the accountability audit found the county’s operations complied with applicable state laws and provided adequate controls, and the financial statement audit resulted in an unmodified (clean) opinion.
"We're issuing an unmodified clean opinion on the county's financial statements," Chang said during the exit conference.
Single audit finding on federal rental assistance For federal grant compliance (the single audit), auditors reviewed a selection of federal programs representing about 59% of federal expenses for 2023. Chang said auditors issued a modified opinion overall for federal compliance and an adverse opinion for the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) program component because the county did not adequately monitor subrecipients that administered a rental assistance program. The auditors found the county could not confirm that only eligible households received assistance.
"We found that there is a non compliance of 1 area which is the subrecipient monitoring," Chang told commissioners and staff, and recommended implementing monitoring procedures to ensure subrecipients comply with federal award requirements.
Prior finding followed up Auditors said the subrecipient monitoring issue had appeared in a prior audit (fiscal 2022) and that while county staff have drafted procedures, monitoring did not occur in 2023. The exit packet includes a summary schedule of prior audit findings and the county’s planned corrective actions; auditors said they will follow up in subsequent audits.
Other audit results Chang said the audit team tested cost allocation, payroll disbursements, procurement, credit card expenditures, service contracts and open public meetings compliance and did not identify material misstatements in the financial statements; a small number of immaterial uncorrected items were communicated to management for correction in future statements. The fairground sponsorship and donation handling was reviewed and auditors concluded revenue and expenditures were handled in accordance with the operating agreement.
Board reaction and next steps Commissioners asked questions and said the exit packet provided comprehensive detail. Chang said the final audit report would be published within a week or two and that the auditor’s office would send the county an audit survey after publication. No board action was required at the exit conference; staff and auditors noted the county should implement or complete documented subrecipient monitoring procedures and return those to the auditors in future cycles.
Ending Auditors estimated similar costs for the next cycle and said the fiscal 2024 audit will cover the same scope. The county will receive the published report and the audit follow‑up will continue in the next audit cycle.
