Council presses staff on years‑late audits; city outlines plan to catch up
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Summary
Council reviewed audit findings from 2021 and the 2021–2023 accountability audit, raised concerns about multi‑year reporting delays and internal controls, and heard staff commitments to complete outstanding financial statements and audits this year.
The Moses Lake City Council heard a detailed briefing on prior audit findings and staff plans to catch up on delayed financial statements.
Madeline (staff presenter; full title not specified in the transcript) reviewed the 2021 financial statement audit and the 2021–2023 accountability audit, including findings, management letters and exit items. She said auditors are on site for the 2022 audit and staff hopes to have 2025 financial statements prepared to allow auditors to begin their reviews. Madeline told council that correcting the accounting system and converting to a cash‑basis presentation in 2025 were major pieces of the work to enable faster preparation going forward.
Several council members expressed frustration and concern that the city is reviewing 2021 audit results in 2026. Council member Davis said late reporting has made the city ineligible for some state funding and limited options (for example, certain bond paths) and urged staff to prevent future delays. Davis said the backlog created a perception problem and stressed transparency and publicly available updates.
Staff described contributing causes such as staff turnover, training needs, and difficulty extracting the required formats from the financial system. The city has engaged a consultant to pull historical data into an auditor‑ready format and aims to have financial statements through 2025 filed with auditors by May; auditors have committed to prioritize Moses Lake's work if the statements are delivered.
Council asked for and staff agreed to periodic updates; an auditor entrance conference will be scheduled and council members will be invited. Staff also noted corrective actions are documented in the audit memo, including changes to internal controls and evidence‑safeguarding practices that were raised by the auditors.
Ending: Council requested follow‑up briefings and expressed that audit remediation and timely public filing are urgent priorities ahead of any major financing decisions.