State auditors open entrance conference for Buckley 2022–2023 audit

The Washington State Auditor's Office opened an entrance conference at the Buckley City Council meeting to begin audits covering Jan. 1, 2022, through Dec. 31, 2023, auditors said.

The entrance conference explained the two audits planned — an accountability audit and a financial statement audit — and described areas the auditors will review, the reporting levels they may use if issues are found, the timeline and available support resources.

"My name is Christina Baylor. I serve as the audit manager," Christina Baylor said as she introduced the scope and the state's role in routine audits of local governments. Jen Rosler, the audit lead, said, "We will be performing an accountability audit covering the period from 01/01/2022 through 12/31/2023," and summarized the risk-based topics auditors selected for review.

The accountability audit will examine banking activities (including disbursements), accounts receivable with emphasis on utility billing adjustments and collections, cash receiving procedures and cost allocation practices, auditors said. The financial statement audit will assess whether the city's financial statements are "fairly stated and materially correct" and will be conducted in accordance with government auditing standards and the state's BARS manual.

Auditors said planning work included reviewing minutes, prior audits and risk assessments with city staff; an engagement letter was signed by city staff and auditors; weekly status meetings will begin the following Tuesday. Auditors described three reporting levels they may use: formal findings (included in the SAO report with a city response), management letters (public documents referenced in the report) and lower-level exit items.

Christina Baylor emphasized confidentiality and file-transfer security for sensitive documents such as payroll records, and said the cost estimate for the engagement matched what was quoted in the prior audit. Auditors also encouraged the city to notify the State Auditor's Office immediately if the city becomes aware of a known or suspected loss of public funds; such reports are triaged by SAO's investigative team and may lead to investigations or coordination with the city.

Auditors highlighted cybersecurity as an increasing risk and noted two reporting expectations: the state auditor's office requests notification of cybersecurity incidents of any scale, and incidents affecting more than 500 Washington state residents must be reported to the attorney general's office. The SAO offered a free "cyber checkup" service and training through its Center for Government Innovation and a financial-intelligence tool on the SAO website that allows public comparison of city financial indicators.

The auditors concluded by reiterating the timeline for an exit conference and a final report that will include the audit opinion, results of the auditors' internal control and compliance work, and the audited financial statements.

"We look forward to sharing the results of our audit with you at a later date," Baylor said.