A recent report released by the State Auditor’s Office found, local governments (including fire protection districts) still struggle to file their reports on time or at all. All local governments are expected to file their annual financial reports with the State Auditor’s Office within 150 days after the end of their fiscal year.
In both 2011 and 2012, more than 700 of 1,956 local governments did not file their reports as required for each year. Due to increased outreach by the State Auditor’s Office in 2013, such as trainings and workshops, about 100 more local governments filed their required annual reports.
However, in 2013, 611 local governments still did not report as required. The highest percentages of these are fire protection, water/sewer, and diking/drainage districts. 48 fire protection districts were either late filers, incomplete filers or non-filers for each of the last three consecutive fiscal years (2011-2013).
If local governments do not file annual reports as required, the State Auditor’s Office cannot independently review the public funds they received or how they spent them. Between 2011 and 2012, more than $2.2 million in expenditures could not be audited because local governments did not submit their annual financial reports as required.
There are consequences for taxpayers and local governments for unaudited public funds. This lack of transparency makes it difficult if not impossible for taxpayers to hold local governments accountable. This indication of a lack of fiscal responsibility may lead to reduced future funding and other negative consequences, such as poor bond ratings or trouble arranging credit and loans.
The most commonly faced obstacles to filing reports arise from the very nature of local governments: tight budgets, part-time staff or volunteers, and inadequate oversight by elected or appointed officials.
To help overcome some of these obstacles, the State Auditor’s Office created an online annual reporting system that went live in 2012 and is fast becoming recognized as the quick and easy way to file annual reports. As an added bonus, using the online system allows governments to easily generate print-ready financial statements. Access to the online filing system is through the Client Portal at https://portal.sao.wa.gov/saoportal
The State Auditor’s Office Helpdesk can also answer any question that arises about filing an annual financial report. Subject-matter specialists will answer user questions, often within one business day. You can also reach the Helpdesk through the Client Portal.