State auditor finds SeaTac error that city blamed on ‘shortage of staff’


By Jack Mayne

The Washington state auditor has found that the City of SeaTac did not have adequate internal controls in 2016 to be certain that funds were accurately reported, identified and transferred internally.

The city agrees with the problem, but has assured the auditor that the issue occurred because of it being short staffed, which now has been now fully remedied.

Overstated
The audit said the City’s Municipal Capital Improvements Fund was wrongly reported in city books “as a non-major fund” even though it had assets of nearly $7 million and revenues of over $2 million.

“The City overstated federal expenditures for one program by $4.5 million, resulting in unnecessary federal audit work being performed,” the audit report said.

When managerial funds were combined into major funds for financial reporting, the City did not properly eliminate the transfers between the general fund and one of its managerial funds, overstating both transfers in and transfer out by $778,849.

Error corrected
SeaTac said it had corrected the errors and regrets the mistakes.

“It should be noted that we immediately fixed everything the Auditor’s pointed out before they even left the scene,” said City Manager Joe Scorcio.

“They commented very positively on our responsiveness when they presented the audit to the Council Committee. I’ve got a good financial team in place now and I believe we will fix anything else that might come up in the future.”

The auditor thanked the city for its response but said it would “review the audit of this issue during our next audit.


Comments

One Response to “State auditor finds SeaTac error that city blamed on ‘shortage of staff’”
  1. seatac says:

    Let’s get this straight: so the city had “…assets of nearly $7 million and revenues of over $2 million.”

    Don’t we wish other cities have a problem with having too much money for a change?

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