The Washington State Auditor’s Office issued separate findings in financial statement and accountability audits of North Whidbey Fire and Rescue.
The reports were released this week but cover the period of Jan. 1, 2019 through Dec. 31, 2021.
Chris Swiger, the interim fire chief, pointed out that the department had turnover in key positions during the time the audit covered.
“This does not make the finding any less serious and changes have already been put in place to make sure this does not happen again,” he wrote in an email.
The financial statement audit found variances in the revenues and expenditures reported on the financial statement to the district’s bank activity of $20,000 in 2019 and $210,000 in 2021.
“The variances are likely due to unrecorded transfers, but the district could not provide documentation to support them,” the report states.
The financial audit noted other smaller issues that were corrected.
In addition, the accountability audit found that the district did not have adequate internal controls over payroll and accounts payable to ensure disbursements were accurate. The auditor made recommendations to the district for improvements in two previous audits, but the control structure continued to be inadequate, the report states.
The audit found inconsistencies in employee leave balances. The report states that the prior accounting manager overpaid herself in leave buyout but she underpaid herself during multiple payroll periods.
In addition, the report noted inconsistencies in the bookkeeping related to fuel purchases.
In its response to the finding, the fire district explained changes that were made to implement the auditor’s recommendations.
“The district is aware of its reporting and recording deficiencies, and the inadequacies that resulted from experiencing significant turnover rates in key management positions during the audit period,” the district said in its response. “Additionally, the district realizes that not every material weakness is due to significant turnover, but that its lack of internal controls, management review, employee knowledge and training, updated policies, and proper implementation of policies and procedures has contributed significantly to its performance regarding state law recording and reporting requirements.”
