A financial audit of the City of Tumwater discovered significant deficiencies in the city’s financial statements, finding the city hasn’t reported infrastructure assets for more than two decades. The city responded that it has been disclosing for years that it hasn’t been making those reports.

The audit, performed by the state Auditor’s Office last year, found that Tumwater’s annual Government Accounting Standards Board Statement did not “report infrastructure assets acquired after 1980 and before 2003,” meaning the city “is not meeting Generally Accepted Accounting Principles in relation to its valuation and reporting of the city’s infrastructure and its associated depreciation.”

In the findings section of the audit, it was determined that the “valuation of infrastructure is expensive and time consuming and that the city has not made it a priority to commit the necessary resources to accurately complete its financial reporting.”

“Financial resources to address the complete recognition of the City’s roadways have not been available to fully comply with the pronouncement,” according to the city’s response.

After reviewing the audit results, City Administrator John Doan said that the city takes the findings seriously and would deal with the issue but that it would take “a healthy chunk of money” to inventory the assets during that time, estimating it would cost $100,000. There is street fund money for professional services that could be used, but there are no specific budget proposals at this time, Doan said.

In the official response, the city assured the missing assets are infrastructure that is regularly maintained (including roads and sidewalks) and “not in jeopardy to loss.”

The auditor recommends Tumwater “devote adequate time and resources to the valuation and reporting of infrastructure.”

An accountability audit during the same time period came back with no findings.

Nate Hulings: 360-754-5476

nhulings@theolympian.com

www.theolympian.com/outsideoly