How bad does it have to get before two cities finally decide to implement reasonable financial controls. If last week’s batch of audits released by the State Auditor is any indication, pretty bad.

The City of Sunnyside “has not effectively managed its operations, resulting in a decline in its financial condition” over the last four years. Further, “the City’s General Fund relies on unsupported annual cost allocation transfers of about $900,000 from restricted utility funds…The City is at risk of not being able to meet financial obligations or maintain services at current levels.”

With the City of Lynnwood the audit found “deficiencies in internal control over accounting and financial reporting that, when taken together, represent a material weakness” — the highest state level of deficiency. “Staff responsible for financial statement preparation and oversight lack the level of technical knowledge needed to ensure the City’s financial reporting is accurate and complete.”

Significant deficiencies were also found in four additional audits, covering the City of Bonney Lake, Thurston Regional Planning Council, Centralia School District, and Yakima County East Valley School District No. 90.

For details on any of these go to http://portal.sao.wa.gov/SubscriptionServices/RecentAuditReportSubscriptions.aspx?CID=8247 .

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