Redmond holds entrance conference to begin 2023 financial and federal grant audits

Redmond City Council held a special meeting Tuesday to begin the 2023 financial, accountability and federal grant compliance audits, officials from the Washington State Auditor’s Office told the council.

The entrance conference summarized the audits’ scope, the periods to be reviewed, reporting requirements for suspected losses and data breaches, and the SAO’s timeline for completing work and issuing findings. "So the purpose of the accountability audit is to determine whether the city's complied with state laws, contracts, agreements, your own policies and procedures," said Sajid Adams, audit manager, Washington State Auditor’s Office.

The SAO told the council it plans an accountability audit covering Jan. 1, 2022, through Dec. 31, 2023; a financial statement audit covering Jan. 1, 2023, through Dec. 31, 2023; and a federal grant compliance (single) audit for the same 2023 period. "That audit is required anytime the city expends over $750,000 or more in federal funds," Adams said.

Angela Fundamori, audit lead, described the SAO’s reporting levels for issues the audit may identify: "Our office has 3 primary levels of audit recommendations that are used to convey the significance of the audit issues identified." The SAO said the highest level—findings—address significant deficiencies such as material weaknesses or misuse of public funds; lower levels include management letters and exit items.

Priscilla Wong, audit supervisor, and SAO staff also emphasized confidential handling of sensitive data and available support services. The SAO’s entrance materials direct governments to notify the office immediately of any known or suspected losses of public funds; the materials also note state requirements to report cybersecurity incidents to the Washington Attorney General’s office when a single incident affects more than 500 Washington residents.

Kelly Cochran, Redmond’s finance director, said the city expects to complete the audit work and hold an exit conference "within the next 2 to 3 months, and be back for, the exit conference." Cochran added staff expect to then queue the 2024 entrance conference after the 2023 audits conclude.

No formal council action or vote was recorded during the special meeting. The SAO said it will provide an engagement letter with an estimated audit cost once the letter is finalized and asked the city to notify auditors if records presented for review contain sensitive information so the office can apply safeguards. The SAO also highlighted free support services available to local governments through its Center for Government Innovation.

Next steps conveyed at the meeting: the SAO will complete audit planning and notify the city which accountability areas it will test; the city will provide requested records and coordinate with the audit team; and the SAO will return for an exit conference when the audit is complete.