Early audit report details the errors in county asset values

For the first time ever, state auditors are inspecting Whitman County’s complete set of books and finding “huge errors” in how assets are accounted for, according to Bev Divine, county finance director.

“It’s like we falsified the value of our assets because we don’t have any backup,” said Divine.

Divine briefed county officials on the progress of the state audit of the county’s 2008 financial statement. The audit is the first complete review of Whitman County’s finances since 2003.

“They’re forcing us to do something we’ve never had to do,” said County Commissioner Greg Partch.

Whitman County switched from a cash accounting style to an accrual system for 2004. Accrual accounting accounts the value of all county-owned assets, instead of just financial transactions.

Divine said buildings worth about $1.5 million, communications equipment worth about $500,000 and public works vehicles dating back to 1976 lacked proper value documentation.

“That’s one of the good things about going through a GASB 34 audit,” said Commissioner Michael Largent. “This certainly isn’t bad news. It’s just we’ve never had to worry about specific balance sheet items.”

Divine’s announcement prompted grumblings from several of the department heads in the meeting. Several afterwards expressed frustration to the Gazette with the switch to accrual accounting.

“You’re going to hear some groans because that takes some work,” said Largent. “This is a big switch. We’ve never done this extensive reporting before. But in the end, it’s going to pay off because we’re going to have full, complete statements.”