State auditors say Redmond passed 2022–23 accountability audit but flagged late annual filings

The Washington State Auditor's Office told the Redmond City Council on May 12 that the city "complied in all material respects" with applicable laws, regulations and city policies in its 2022–23 accountability audit, a result the auditors described as a "clean audit." Angela Funamori, the audit lead, presented the results and said the report shows adequate controls over safeguarding public resources.

The auditors also summarized items in a management letter that is referenced but not included in the audit report. Funamori said state law requires the city to submit an annual report within 150 days after fiscal year end and that Redmond'because of significant staff turnover'did not file the city's annual reports on time for fiscal years 2022 and 2023. "The city filed its annual reports 224 and 317 days late, respectively," Funamori said, and the auditors recommended the city establish internal controls to ensure on-time financial reporting.

Council members pressed auditors for details on several areas that had prompted citizen concerns. Councilmember Kritzer asked for more specifics about a payroll-related recommendation; Funamori said auditors had re‑performed payroll tests, compared gross wages to supporting documentation and collective bargaining agreements, and provided a low-level, "housekeeping" recommendation aimed at strengthening internal controls so employees are paid in accordance with agreements or personnel action notices.

On land transfers, auditors told the council they found no formal audit findings but had an "exit item" noting executive-session minutes and whether the stated purpose aligned with allowable reasons for entering executive session. Auditors also demonstrated the office's FIT (financial intelligence) tool, which highlights potential indicators of financial stress; they said a warning on the water/wastewater fund (Fund 402) resulted from a data-entry error that will disappear once corrected.

Council President Stewart asked that the presentation and exit packet be transmitted to the council and the clerk so the public can access the materials; council members said they would forward any remaining questions to Finance Director Kelly Cochran. The auditors said the draft report and exit materials will be published online and that the city'and the public'can sign up to receive notifications when the report posts.

The meeting closed with auditors thanking city staff and offering to provide additional details on audit costs and the scope of future audits upon request.