The Washington State Auditor's Office reported to Ocean Shores officials that it will issue an unmodified, clean opinion on the city’s 2024 financial statements and found the city’s operations complied in all material respects with applicable state laws, regulations and its own policies, auditors said at a public meeting.

Auditors from the office’s Olympia team said they conducted an accountability audit (01/01/2024–12/31/2024) and a financial-statement audit covering the same period. Jade Chamberlain, a member of the audit team, said the review tested cash receipting in municipal court and utility billing, procurement for professional services and public-works projects, tracking of theft-sensitive assets, compliance with budget-adoption and amendment rules, and required review of self-insurance for unemployment claims. "We are pleased to report that we are issuing an unmodified, clean audit opinion on the City's financial statements," Chamberlain said.

The auditors also reviewed the Ocean Shores Transportation Benefit District (01/01/2022–12/31/2024) and the Grays Harbor Public Facilities District and reported the districts were in compliance with applicable requirements and that the public facilities district will receive an unmodified, clean opinion on its financial statements.

Auditors demonstrated the office’s Financial Intelligence Tool (FIT), which aggregates annual-report data for comparative analysis across cities; presenters noted FIT includes 281 cities and towns for fiscal year 2024 and that Ocean Shores’ FIT indicators did not show signs of financial distress after local inquiry. Auditors said no material misstatements were identified in the city's statements and no instances of noncompliance material to the financial statements were found.

A council member raised a question about language in the draft report that referenced GAAP (generally accepted accounting principles) and appeared to imply a preference for GAAP over cash-basis reporting. Lisa Carroll, audit manager for the Olympia team, clarified that the auditors are not saying cash-basis reporting is wrong; rather, professional standards require auditors to disclose when a government does not report under GAAP because GAAP is a more comprehensive model. Carroll said that results in the auditors issuing an unmodified opinion on the government’s cash-basis reporting while also making the required disclosure about GAAP.

Council member Richard Wills praised city finance staff for their work during the audit, saying, "I really commend and applaud both Sarah and Shante and all of the finance staff for what appears to be to have been doing an excellent job." Auditors thanked city management and staff for cooperation during documentation requests.

Auditors told officials that audit costs aligned with original estimates and that the next audits for the City of Ocean Shores and the Grays Harbor Public Facilities District are scheduled for 2026; the Transportation Benefit District is on a multiyear cycle. The auditors said the final reports will publish on the Washington State Auditor's Office website within one to two weeks.