{"database": "mytown-research", "table": "audit_findings", "rows": [[18, "wa-sao", "1020959", "2016-001", null, "WA", "City of Soap Lake", "City/Town", "0325", "5365345", "no_match", "Washington State Auditor's Office", "Accountability audit \u2014 City of Soap Lake", "Accountability", 2016, "2015-01-01", "2016-12-31", "2018-05-17", "internal_controls", null, null, null, "The City lacked adequate internal controls to bill utility accounts in accordance with City Code", "Background \nThe City operates water and sewer utilities, and collected $889,115 and $894,316 \nin water and sewer revenues in 2015 and 2016 , respectively. The utilities serve \nabout 1,350 customers, using rates established by Municipal City Code, \nChapter 13. The City periodically amends City Code through ordinances, which \nupdate annual rates in the Code\u2019s appendix. Ninety customers are classified as \neither commercial or commercial residen tial, and most have multiple units \nassociated with their accounts. \nDescription of Condition \nThe City\u2019s internal controls did not ensure customers were billed in accordance \nwith City Code. Further, City management did not adequately monitor utility \nbillings to determine City Code was followed. Specifically, the City charged \ncommercial and commercial-residential customers for one unit per sewer services \naccount. However, City Code stipulates that each additional unit under an account \nshould be charged the established base rate. \nIn addition, the City Code section pertaining to water rates and overage charges \ndoes not specify whether commercial customers should receive additional base \nwater consumption before incurring overage charges for multi-unit accounts. \nCause of Condition \nCity staff incorrectly classified commercial and commercial -residential sewer \nutility accounts as \u201csingle unit\u201d in the billing system and lacked understanding of \nthe City\u2019s rate setting code over the water utility. \nEffect of Condition \nBetween 2015 and 2016, the City under -billed about $200,000 for sewer utilities \nacross 15 accounts, which is a loss of revenue to the City. The majority of under-\nbilling is because of not charging for additional units by account. \nBecause City Code lacks clarity for multi-unit water utility rates, we are unable to \ndetermine the exact amount of over - or under-billing. However, we estimate the \nCity potentially under-billing about $30,000 for the same 15 accounts. \n \n \n \nWashington State Auditor\u2019s Office Page 7 \nRecommendation s \nWe recommend the City: \n\uf0b7 Train utility billing staff to properly classify commercial and commercial -\nresidential sewer utility accounts in the billing system \n\uf0b7 Clarify the City Municipal Code section for commercial customer water \nrates and overage charges for multi-unit accounts. \n\uf0b7 Develop and follow monitoring controls that ensure utility customers are \nbilled according to rates approved in City Code. \nCity \u2019s Response \nThe City concurs with what the audit discovered as we have also made that same \ndiscovery. The City is working to ensure compliance with the city ordinances and \nwill be reviewing them before the next approved budget. The City has also \ncontacted the city attorney for assistance to ensure the ordinances are consistently \nworded and that the council\u2019s wishes are properly applied. \nAuditor\u2019s Remarks \nWe appreciate the steps the City is taking to resolve this issue. We will review the \ncondition during our next audit. \nApplicable Laws and Regulations \nRCW 43.09.200 Local government accounting \u2013 Uniform system of accounting, \nrequires the State Auditor to prescribe the system of accounting and reporting for \nall local governments. \nThe Budgeting, Accounting and Reporting System (BARS) Manual, 3.1.3, Internal \nControl, requires each local government to establish and maintain an effective \nsystem of internal controls that provides reasonable assurance that the government \nwill achieve its objectives. \nORDINANCE NO. 2015 \u2013 1210; Amendment to Chapter 13.14 of the Soap Lake \nMunicipal Code titled \u201cSewer Service System\u201d states, in part: \nB.5. \u201cWater service unit\u201d shall mean the greater of the \nfollowing: each structure, or structures, residence, or residences, \nlot, or portion or separate unit of a condomin ium used as a \ndwelling unit by a family, as herein defined, shall be deemed one \nwater service unit. By way of example, a triplex shall be three \n \n \nWashington State Auditor\u2019s Office Page 8 \nwater service units; a condominium with 20 separate dwelling \nunits shall be 20 water service units. \nChapter 13.14.290 Sewer rates, states, in part: \nA. The Soap Lake City council shall, annually or more often if \nnecessary, by resolution, establish a schedule \u201cAppendix S\u201d of \ncharges and rates for sewer hookup and connection charges, \nsewer rates, allotments and ove rage charges. The Resolution \nshall also list all other sewer service fees and charges \nCHAPTER 13.14 APPENDIX \"S\"SEWER RATES\u201d, states in part: \nC. Monthly Service Fee: \nEach calendar month during which a sewer service \nconnection is active at any time shall result in the following \ncharges: \n1. Each residential sewer connection serving a single \nresidential dwelling unit: $52.14 per month. \nEach additional residential dwelling unit using the same \nsewer service: $52.14 per month. \n2. Each commercial sewer connection serving one \ncommercial service: $40.84 per month. \nEach additional commercial unit using the same sewer \nservice: $40.84 per month. \n3. Each commercial residential connection serving at \nleast one commercial residential dwelling unit shall be \ndeemed to be one residential commercial unit: $40.84 \nper month. \n4. Usage Charge for Each Commercial Sewer Service \nUnit and for Each \nCommercial Residential Dwelling Sewer Service \nUnit: \nIn addition to the monthly base rate charge for \neach commercial sewer service unit and for each \ncommercial dwelling unit, there shall be charged \n \n \nWashington State Auditor\u2019s Office Page 9 \nfor sewer usa ge the sum of $1.58 for each 1 00 \ncubic feet of water or portion thereof supplied to \nthe commercial water service unit account and to \na comm ercial dwelling water service unit \naccount commencing with the first 100 cubic feet \nof water. \n5. Minimum monthly base rate charge for each customer \nshall be determined by multiplying the monthly base rate \ncharge times the number of sewer service units and then \nadding the usage charge of $1.58 per 100 cubic feet of \nwater or portion thereof supplied to the commercial \nresidential or commercial water service account to the \nbase unit charges, commencing with the first 1 00 cubic \nfeet of water. \nCHAPTER 13.18 APPENDIX \"W\" WATER RATES states, in part: \nCommercial \n1. Basic Water Rate: $26.60 per month \n2. Overage Charge for water usage over 500 cubic feet: \n$1.54 per each additional 100 cubic feet or portion thereof. \nCommercial Residential \n1. Basic Water Rate: $26.60 per month for each commercial \nresidential connection serving a commercial residential \ndwelling unit; provided, however, that for each residential \ndwelling unit in excess of one served by a single meter the \nmonthly water charge shall be $19.32, to include the use of \n500 cubic feet of water per month per each unit. \n2. Overage Charge for water usage over 500 cubic feet: \n$1.54 per each additional 100 cubic feet or portion thereof. \n \n \n \n \nWashington State Auditor\u2019s Office Page 10", "https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1020959&isFinding=false&sp=false", "2026-07-30 13:24:54"]], "columns": ["rowid", "source", "report_number", "finding_number", "muni_id", "state", "entity_name", "entity_type", "entity_ext_id", "place_geoid", "match_method", "auditor", "report_title", "audit_type", "fiscal_year", "period_start", "period_end", "published_date", "finding_category", "severity", "questioned_cost", "cost_basis", "finding_title", "finding_text", "report_url", "fetched_at"], "primary_keys": ["rowid"], "primary_key_values": ["18"], "units": {}, "query_ms": 4.261102003511041, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}