State Auditor's Report on Accountability for Public Resources

Report on Accountability for Public Resources prepared by the State Auditor’s Office for WSDOT’s Fiscal Year 2008 (July 1, 2007 to June 30, 2008).

The State Auditor’s Office provides an annual audit of WSDOT’s accountability for public resources and compliance with state laws and regulations and its own policies and procedures. The audit for FY 2008 was released on April 6, 2009.

The report is available as a PDF (128 kb) from the State Auditor's Website: (http://www.sao.wa.gov/auditreports/auditreportfiles/ar1001050.pdf)

Summary of the Audit

The State Auditor’s Office found that “In most areas, the Department complied with state laws and regulations and it own policies and procedures.”

WSDOT received the fiscal audit report from the State Auditor's Office with one finding. The finding recommends:

• “The Department strengthen its internal controls to ensure compliance with state contracting rules and regulations as well as its own policies and procedures for purchasing” in its Ferries Division.
• “The (Ferries) Division ensure those involved with contracting are properly trained in their duties”.

The audit does not examine every portion of WSDOT’s activities. The highest risk areas are examined. This audit evaluated WSDOT’s accountability in the following areas:

• Cash receipting and revenue
• Credit cards
• Expenditures
• Procurement of goods and services
• Highway construction expenditures and payment system
• Payroll expenditures and system
• Safeguarding of assets

The audit reviewed financial statements, tested account balances, and financial activity related to:

• Capital outlays 
• Depreciable assets
• Non-depreciable assets
• Transportation expenditures

The financial statement audit report is included in the Statewide Comprehensive Annual Financial Report (CAFR) prepared by and available from the Office of Financial Management (OFM) report, which is available at Financial Management's website: http://www.ofm.wa.gov/cafr/2008/default.asp

The audit also reviewed federal programs administered by WSDOT, in accordance with the Single Audit Act. The results of that audit work are included in the Statewide Single Audit Report, issued by the Office of Financial Management (OFM), which is available at Financial Management's website: http://www.ofm.wa.gov/singleaudit/2008/default.asp

Secretary Paula Hammond’s Response to the Audit:

“The Department values an independent review of its operations including adherence to federal and state laws, rules and regulations. Department management will review the findings for 2008 together with your recommendations and take action as appropriate. We appreciate the assistance from your staff and look forward to continuing our working relationship based on a high level of professional standards.”

Department Response to the Audit:

“Thank you for acknowledging the Department’s progress in addressing the issues described in the audit finding. The Department appreciates your recommendations regarding contracting and purchasing at Ferries and is committed to addressing these issues.”

“The Department will continue its progress to strengthen internal controls over purchasing and contracting at Ferries, to ensure compliance with state rules, as well as internal policies and procedures. We have already taken steps to provide greater oversight over purchasing by moving eight buyers from the Vessels Division into a new section within Finance and Administration at Ferries, and by reminding employees of their responsibility regarding purchasing rules.”

Have Questions?

For more information on WSDOT 2008 Fiscal Audit, please contact: 

Lloyd Brown
Communications Director
(360)-705-7076
brownl@wsdot.wa.gov

Steve McKinney
Director of Internal Audit
(360)-705-7004
mckerns@wsdot.wa.gov