skip to main content

The Audit Connection Blog

Results for: Financial management


A lease agreement shown with a pair of eyeglasses and a pen

Are you ready for lease accounting?

November 19, 2019

Accounting and reporting standards and guidance for leases are changing for both GAAP and cash basis local governments, effective for fiscal years ending December 31, 2020, and after. Although you won’t be preparing your financial statements and notes until early 2021, those first lease payments under the new standard will begin to flow in January 2020. Will you be ready?

… CONTINUE READING →
Cover of Segregation of Duties guide

Every government in Washington has a duty to safeguard the resources entrusted to it; our new guide shows you how

September 26, 2019

Segregation of duties, or separating conflicting duty assignments in your government, can help protect your local government’s assets. But which duties do you segregate, and what are your options if you cannot feasibly do this? What if you are a very small entity with limited resources?

Our Office recognizes how challenging this can be, so the Center for Government Innovation created a new resource to help you get started, no matter your size.

… CONTINUE READING →
First page of new resource about identifying asset retirement obligations

Are you ready to identify your asset retirement obligations?

July 26, 2019

Local governments are beginning to implement GASB Statement No. 83 on asset retirement obligations, or ARO’s, which is effective for reporting periods beginning after June 15, 2018. To help local governments begin, the Center for Government Innovation has published a new resource to help you identify asset retirement obligations in Washington.

… CONTINUE READING →
Close-up Of Businessperson Hands Checking Invoice With Magnifying Glass At Desk

McCarthy says Wapato audits show need for accountability in the city

May 2, 2019

YAKIMA – The Office of the Washington State Auditor published two audits of the City of Wapato today, documenting significant violations of government standards. The accountability and financial audits include eight findings, an unusually high number and cause for concern. The State Auditor’s Office (SAO) also issued a letter to Wapato leadership responding to concerns that the public raised about the city. The reports come after SAO issued a fraud report in February detailing a $300,000 misappropriation in Wapato.
“These audits speak to a basic lack of accountability and transparency in the city,” said State Auditor Pat McCarthy. “It is important the State Auditor’s Office shine a light on issues that need public attention, and the situation in Wapato is deeply concerning.”

… CONTINUE READING →
Human hands exchanging money

Have an employee incentive-pay program? Keep these things in mind

November 8, 2018

Governments in Washington must exercise care when creating and implementing programs to compensate employees beyond their base salary.

This article offers items to consider specific to performance-based incentive pay. The following is intended for informational purposes only – always consult your government’s attorney for specific legal advice on these matters.

… CONTINUE READING →
Photo of devices

New resource identifies best practices for small and attractive assets

October 24, 2018

BBB. Recently, the Performance Center provided several resources on accounting for capital assets to help local governments with financial reporting. Another group of assets, which fall below a government’s capitalization threshold, should also be considered when establishing and evaluating asset policies and other internal controls. In Washington, we frequently refer to these as “small and attractive assets,” but they these could be described using different terminology.

… CONTINUE READING →

Changes to fiduciary reporting take effect soon

August 14, 2018

Last fall, we posted an article strongly encouraging governments to start evaluating activities that might be classified as fiduciary activities under the Governmental Accounting Standards Board’s (GASB) recently issued Statement No. 84. The changes to fiduciary activity reporting are right around the corner – effective for reporting periods beginning after December 15, 2018 – and affect not only governments that report under generally accepted accounting principles, but those that report using the cash-basis accounting model as well.

… CONTINUE READING →

New resource identifies best practices for small and attractive assets

May 29, 2018

Recently, the Performance Center provided several resources on accounting for capital assets to help local governments with financial reporting. Another group of assets, which fall below a government’s capitalization threshold, should also be considered when establishing and evaluating asset policies and other internal controls. In Washington, we frequently refer to these as “small and attractive assets,” but they these could be described using different terminology. For example, the Government Finance Officers Association refers to them as “controlled capital-type items” in its best practice guidance.

… CONTINUE READING →