audit_findings: 22

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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
22 wa-sao 1021104 2016-001   WA City of Orting City/Town 0594 5352005 no_match Washington State Auditor's Office Accountability audit — City of Orting Accountability 2016 2014-01-01 2016-12-31 2018-05-07 procurement material_weakness     The City’s internal controls over procurement were inadequate to ensure compliance with bid law Background State law requires the City to use formal competitive bidding procedures for purchases of $15,000 or more. This includes advertising the purchases’ specifications in a general circulation periodical, opening the bids at a public forum with a fixed time and place, and awarding the contract to the lowest responsible bidder. In addition, the governing body must approve the winning bid. Description of Condition In 2016, the City purchased three trucks, one backhoe and a trailer totaling $269,637. In 2017, the City purchased a generator and a backhoe totaling $183,398. Each of these purchases exceeded $15,000. Our audit identified the following concerns: • For most of the purchases, the City used a vendor roster to identify potential vendors and then completed an online search to identify the lowest price. The City should have advertised to solicit sealed bids to be opened at a public forum. • A backhoe was purchased through a procurement services vendor that did not advertise to solicit bids, thereby not allowing the opportunity for all potential vendors to submit bids as state law requires. Cause of Condition City management were not aware of the competitive bid requirements for purchases of $15,000 or more. Effect of Condition The City cannot demonstrate it received the lowest price for these purchases or that all vendors were given equal opportunity to bid. Washington State Auditor’s Office Page 6 Recommendation We recommend the City implement adequate internal controls over procurement to ensure compliance with state laws and ensure an open, competitive environment for all purchases. City ’s Response The City erred in its procurement process as outlined by the Auditor in the Accountability Audit. The city staff have since received training on State procurement requirements, passed a Purchasing Policy in January 2018, and put in place a more controlled procurement process that is in conformance with State Law. Auditor’s Remarks We appreciate the timely actions taken by City staff during the audit to get understanding of procurement requirements. City staff were very helpful during the audit process. We will review these changes during our next audit. Applicable Laws and Regulatio ns RCW 35.23.352 Public works – Contracts – Bids – Small works roster – Purchasing requirements, recycled or reused materials or products. Washington State Auditor’s Office Page 7 RELATED REPORTS Financial Our opinion on the City’s financial statements is provided in a separate report, which includes the City’s financial statements. That report is available on our website, http://portal.sao.wa.gov/ReportSearch. That report includes a finding for a material weakness in internal controls over financial reporting. Washington State Auditor’s Office Page 8 INFORMATION ABOUT THE CITY The City of Orting serves 7,600 citizens in Pierce County. It is administered by a mayor -council form of government. The City has seven elected Council Members and an independently elected Mayor. The City Council appoints an Administrator to oversee the City’s daily operations as well as its 33 employees. The City provides services including water, sewer, stormwater, police protection, Municipal Court, parks and recreation, building permitting and land use, planning and economic development. For fiscal years 2014, 2015, and 2016, the City expended approximately $21.7 million, $10.9 million, and $10.1 million, respectively. Contact information related to this report Address: City of Orting 110 E. Train P.O. Box 489 Orting, WA 98360 Contact: Scott Larson, Treasurer Telephone: (360) 893-2219, ext. 111 Website: www.cityoforting.org Information current as of report publish date. Audit history You can find current and past audit reports for the City of Orting at http://portal.sao.wa.gov/ReportSearch. Washington State Auditor’s Office Page 9 ABOUT THE STATE A UDITOR’S OFFICE The State Auditor's Office is established in the state's Constitution and is part of the executive branch of state government. The State Auditor is elected by the citizens of Washington and serves four-year terms. We work with our audit clients and citizens to achieve our vision of government that works for citizens, by helping governments work better, cost less, deliver higher value, and earn greater public trust. In fulfilling our mission to hold state and local governments accountable for the use of public resources, we also hold ourselves accountable by conti nually improving our audit quality and operational efficiency and developing highly engaged and committed employees. As an elected agency, the State Auditor's Office has the independence necessary to objectively perform audits and investigations. Our audits are designed to comply with professional standards as well as to satisfy the requirements of federal, state, and local laws. Our audits look at financial information and compliance with state, federal and local laws on the part of all local governments, including schools, and all state agencies, including institutions of higher education. In addition, we conduct performance audits of state agencies and local governments as well as fraud, state whistleblower and citizen hotline investigations. The results of our work are widely distributed through a variety of reports, which are available on our website and through our free, electronic subscription service. We take our role as partners in accountability seriously, and provide training and technical assistance to governments, and have an extensive quality assurance program. Contact information for the State Auditor’s Office Public Records requests [email protected] Main telephone (360) 902-0370 Toll-free Citizen Hotline (866) 902-3900 Website www.sao.wa.gov https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021104&isFinding=false&sp=false 2026-07-30 13:24:54