{"database": "mytown-research", "table": "audit_findings", "rows": [[35, "wa-sao", "1021303", "2017-001", null, "WA", "Mason County Fire Protection District No 18", "Fire Protection District", "0300", null, "not_municipal", "Washington State Auditor's Office", "Accountability audit \u2014 Mason County Fire Protection District No 18", "Accountability", 2017, "2016-01-01", "2017-12-31", "2018-05-21", "misappropriation", null, null, null, "The District did not have adequate internal controls over cash receipting and petty cash to ensure adequate safeguarding of public resources", "Background \nMason County Fire Protection District No. 18 is located in Mason County and \nserves the Lake Cushman area. The District\u2019s total revenue was about $362,000 \nand $211,000 in 2016 and 2017, respectively. \nDistrict management is responsible for establishing effective internal controls to \nensure compliance with state law and adequate safeguarding of public funds. \nDescription of Condition \nThe District\u2019s internal control systems were inadequate to ensure compliance with \nstate laws and safeguarding of public resources. Our current audi t identified the \nfollowing control deficiencies: \nCash receipting \nThe District receives an average of $14,000 a year in revenue other than taxes. The \nDistrict did not record or have records of funds receipted, and did not have a \nreconciliation function to ensure receipted funds were adequately safeguarded from \nloss or misappropriation. \nIn addition, the District lacked adequate controls to ensure funds were deposited \npromptly in accordance with state law (RCW 43.09.240). Because there were not \nadequate controls or any records of cash receipted, we were not able to test cash \nreceipting. There is a continued risk of loss or misappropriation for cash receipting. \nPetty cash \nThe District had a petty cash fund of $1,000 and total replenishments to the fund of \nabout $3,000 in 2016 and 2017. \nThe District identified a loss of $666 in petty cash funds. We tested 42 petty cash \nexpenditures and six monthly reimbursements for those expenses from 2016 and \n2017. We noted the following: \n \nWashington State Auditor\u2019s Office Page 7 \n\u2022 Three of the six monthly reimbursement amounts did not tie to supporting \nreceipts. We identified a total of $1,127 in petty cash expenditures that were \nunsupported or questionable. \n\u2022 17 petty cash expenses, totaling $346, were used by or reimbursed to the \npetty cash custodian without a secondary review or approval. \n\u2022 14 petty cash expenses, totaling $424, were not allowable because the \nDistrict had not determined in its policy that they were a valid use of funds. \nCause of Condition \nThe District staff responsible for cash receipting and petty cash lacked adequate \ntraining and resources to establish adequate internal controls. In addition, District \nmanagement did not dedicate sufficient resources or monitoring to ensure effective \ninternal controls were established and consistently applied. \nEffect of Condition \nWithout adequate internal controls in place to ensure compliance with state law and \nsafeguarding of public resources, the District is at increased risk of noncompliance, \nfraud and abuse. \nNoncompliance, fraud and abuse can result in loss of public trust, fewer resources \navailable to perform services and inability to maintain the public assets entrusted \nto the District by its taxpayers. \nRecommendation \nWe recommend the District establish a process to proactively identify, assess and \nrespond to risks. \nWe further recommend the District establish and follow internal controls to ensure: \n\u2022 Receipted funds are recorded, promptly deposited, intact and reconciled by \nsomeone not involved in the receipting process \n\u2022 Petty cash reimbursements are supported by adequate documentation and \nhave a secondary review to ensure all expenses are for District purposes and \nallowable under District policy \nFinally, we recommend the District ensure employees responsible for key internal \ncontrols receive adequate training to effectively perform their duties. \n \n \nWashington State Auditor\u2019s Office Page 8 \nDistrict\u2019s Response \nOn December 31 st, 2016 we had a change of district secretary and then the \ntermination of our Fire Chief on January 13 th, 2017. This all prompted \nconsiderable examination of our policies and procedures that were in place. \nMason County Fire District 18 adopted many new policies on March 31 st, 2017. \nThe petty cash policy was included in this grouping. The Cash receipting policy has \nbeen instituted in accordance with RCW 43.09.240 \nWe now have a detailed review and audit of all payments made to our volunteers \nand procedures set in place to monitor warrants and credit card transactions. \nPrior to our onsite audit, most of the issues noted had been addressed. The \nrecommendations from the State Auditor\u2019s office regarding findings noted will be \nimplemented where appropriate. \nAuditor\u2019s Remarks \nWe want to thank the District for its assistance throughout the audit and the steps it \nis taking to address the issues. The District\u2019s status of corrective actions will be \nreviewed during our next audit. \nApplicable Laws and Regulations \nRCW 43.09.200 \u2013 Local government accounting \u2013 Uniform system of accounting, \ngives the state auditor the authority to formulate, prescribe and install a uniform \nsystem of accounting and reporting for all local governments. \nBudgeting Accounting and Reporting System (BARS) Manual \u2013 Accounting, \nAccounting Principles and General Procedures, Internal Control defines internal \ncontrol, describes it purpose, and specifies each entity is responsible for \nestablishing and maintaining an effective system of internal control throughout \ntheir government. \nRCW 43.09.240 \u2013 Local government accounting \u2013 Public officers and employees \n\u2013 Duty to account and report \u2013 Removal from office \u2013 Deposit of collections, \ndescribes the timely depositing requirements for local governments. \n \n \n \nWashington State Auditor\u2019s Office Page 9", "https://portal.sao.wa.gov/ReportSearch/Home/ViewReportFile?arn=1021303&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": ["35"], "units": {}, "query_ms": 78.40236302581616, "source": "MyTown", "source_url": "https://mytown.theboringparts.com", "license": "CC BY 4.0", "license_url": "https://creativecommons.org/licenses/by/4.0/"}