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HomeMy WebLinkAboutCouncil Signed Minutes 05-07-26 (Audit Exit Special Meeting)Minutes of the City of Arlington Special Meeting Audit Exit Conference Microsoft Teams May 7, 2026 Councilmembers Present: Michele Blythe and Tim Abrahamson both attended virtually. Staff Present: Mayor Don Vanney, Paul Ellis, Shelby Burke, Sheri Amundson, and Raelynn Jones. Also Known to be Present: Office of the Washington State Auditor; Assistant Audit Manager Erika Davies, Audit Manager Courtney Amonson, and Audit Lead Deb Kindinger. The special meeting began at 10:00 a.m. with introductions by Audit Lead Deb Kindinger, Audit Manager Courtney Amonson, and Assistant Audit Manager Erika Davies. City of Arlington staff and City Council members in attendance followed with introductions. DISCUSSION Accountability Audit Report Review of the report containing the results of their independent accountability audit that was performed on the financial statements of the City of Arlington, starting January 1, 2023 ending December 31, 2024, was provided by Ms. Kindinger, Ms. Davies, and Ms. Amonson. The report describes the overall results and conclusions for the areas that were examined. In most areas examined, City operations complied, in all material respects, with applicable state laws, regulations, and its own polices, and provided adequate controls over safeguarding of public resources. Recommendations for identified areas of improvements provided in the report were presented. Financial Statement and Federal Single Audit Report An unmodified opinion on the fair presentation of the city's financial statements in accordance with its regulatory basis of accounting (BARS Manual) was presented. In addition, a separate adverse opinion on the fair presentation with regard to accounting principles generally accepted in the United States of America (GAAP) because the financial statements are prepared using a basis of accounting other than GAAP. It was reported that the audit did not identify any deficiencies in internal control that is considered to be material weakness. Additionally, the results of the tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Minutes of the City of Arlington Audit Exit Conference September 23, 2024 Federal Awards An unmodified opinion on the City's compliance with requirements applicable to its major federal program resulted in no reported findings that are required to be disclosed in accordance with 2 CFR 200.516(a). It was reported that the City complied, in all material respects, with the types of compliance requirements that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2024. Identification of Major Federal Programs An unmodified opinion on compliance requirements applicable to the COVID-19 Coronavirus State and Local Fiscal Recovery Funds program was selected in the audit of compliance in accordance with Government Auditing Standards and the Uniform Guidance of which no findings were reported. Ms. Davies provided information on the Financial Health intelligence tool that was utilized to provide a clear picture of the City's overall financial health. Ms. Davies responded to a question asked by Councilmember Michele Blythe. Discussion followed. The next audit is scheduled to be conducted in Summer 2026. Ms. Kindinger provided closing remarks and thanked Finance Director Shelby Burke, Assistant Finance Director Sheri Amundson, and all other City staff for timely responses to the audit requests and the excellent documentation they provided. She stated they have been a pleasure to work with. ADJOURNMENT With no further business to be conducted, the special meeting ended at 10:32 a.m. Don E. Vanney, Mayor