Audit

State auditors gave Whitman County a clean grade on its 2010 financial statement.

County officials were briefed Tuesday morning by state auditors Karen Wilson and Kent Zirker on the results of their review of the county’s 2009 financial statement.

“I might start crying,” said Auditor Eunice Coker.

Last year marked the first time in six years the county had submitted a full financial statement.

This year, the audit crew reported, the county’s statement was complete and without any serious errors.

“We couldn’t have gotten any better than we did this year,” said Commissioner Greg Partch.

Zirker added the methods in which the county is preparing its statement are more reliable than in years past.

“The controls are in place and are moving in the right direction,” said Zirker.

Auditors took a sampling of the county’s financial statement and extrapolated based on that information on the accuracy of the county’s accounting.

Zirker said the audit reviewed 50 percent of the county’s federal funding. That was because Whitman County is a “high-risk” audit. Another clean audit next year would bump the county into low-risk status for its 2012 audit.

For the 2010 books, county officials opted to prepare their financial statement on a simple “cash” basis, instead of the more detailed accrual method.

The simpler cash model which shows the county’s financial status at the end of each year. Accrual accounting tracks the value of all county-owned assets, instead of just financial transactions.

Coker said preparation of the report was “much, much simpler” than in years past.

Both she and Partch credited the county’s new financial team for the clean report.

Lack of reliable financial statements was one of the driving factors in commissioners’ decision in June of 2010 to sack the finance department.

Partch said Tuesday’s report was a bit of an affirmation of that controversial decision.

“Anytime you do something major like that you’re going to get criticism,” said Partch. “But yeah, based on what we heard today, I think it’s bearing the fruit we hoped it would.”

Auditors did note some instances where county officials erred, but said they were minor mistakes.

Chief among them was the county’s reconciliation of investments logged on the county register versus those shown on bank statements.

Because county officials did not reconcile those amounts monthly, said auditors, the county had to erase $274,629.62 off its ledger at the beginning of this year.

Auditors did note that situation has been improved with monthly inspections.

The 2010 audit cost $72,915, down from $78,537 for the 2009 review and from $100,162 for 2008.

The auditors’ report on the county’s financial statement, accountability and grant compliance will be posted on the state auditor’s web site in the next couple of weeks.