Audit sorts out Edmonds’ finances

EDMONDS — The city’s financial reporting came under state auditors’ fire during an audit of 2010. Specifically cited was the city not having “adequate oversight of financial operations to safeguard public resources.”

The audit exit conference was completed April 4 by the state auditor’s office.

“No money was misappropriated, no funds were overspent,” said Shawn Hunstock, Edmonds’ finance director. “The errors in financial reporting were not outside of legal compliance.”

The most severe charge, a lapse in internal controls, was created when five finance department staffers were laid off due to budget cuts, Hunstock said. That left multitasking that could blur duties that should be segregated and caused the oversight of cash receipts and payroll functions to fall short of standards.

When that deficiency was brought to the council’s attention, two of the positions were reinstated in 2011.

Hunstock, who came to Edmonds from Tukwila in September 2011, is confident that the 2010 finding will not be an issue when addressed in the 2011 audit. He also feels that the usefulness and timeliness of the city’s financial reporting will be bolstered with the additional staff.

“New audit teams find new things,” Hunstock said. “New accounting standards are used every year.

The auditors spotted other city policies that are either needed or are in conflict and need to be fixed.

A policy addressing change orders was deemed necessary. The council added such a policy Jan. 23.

Time sheet policies also were tapped by the auditors, who found a lack of consistency in completing and approving them.

Some personnel filled out time sheets only when it deviated from a typical work week because of vacation, holidays or sick time. Others accurately completed time sheets fully. The city is upgrading to an online time sheet system that needs to be completed and approved before a paycheck is generated.

There also were auditor questions about leave taken before it was earned. This was particularly noted in the case of new hires.

Hunstock said that those details should be included in an employee’s offer letter and approved by council. That new policy is now in place.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Customers enter and exit the Costco on Dec. 2, 2022, in Lake Stevens. (Olivia Vanni / The Herald)
Costco stores could be impacted by looming truck driver strike threat

Truck drivers who deliver groceries and produce to Costco warehouses… Continue reading

Two Washington State ferries pass along the route between Mukilteo and Clinton as scuba divers swim near the shore Sunday, Oct. 22, 2023, in Mukilteo, Washington. (Ryan Berry / The Herald)
Ferry system increases ridership by a half million in 2024

Edmonds-Kingston route remains second-busiest route in the system.

Pharmacist Nisha Mathew prepares a Pfizer COVID booster shot for a patient at Bartell Drugs on Broadway on Saturday, Oct. 1, 2022, in Everett, Washington. (Ryan Berry / The Herald)
Everett lawmakers back universal health care bill, introduced in Olympia

Proponents say providing health care for all is a “fundamental human right.” Opponents worry about the cost of implementing it.

Outside of the updated section of Lake Stevens High School on Thursday, Feb. 27, 2020 in Lake Stevens, Wa. (Olivia Vanni / The Herald)
Lake Stevens, Arlington school measures on Feb. 11 ballot

A bond in Lake Stevens and a levy in Arlington would be used to build new schools.

Lake Stevens Sewer District wastewater treatment plant. (Lake Stevens Sewer District)
Lake Stevens sewer district trial delayed until April

The dispute began in 2021 and centers around when the city can take over the district.

Robin Cain with 50 of her marathon medals hanging on a display board she made with her father on Thursday, Jan. 2, 2025 in Lake Stevens, Washington. (Olivia Vanni / The Herald)
Running a marathon is hard. She ran one in every state.

Robin Cain, of Lake Stevens, is one of only a few thousand people to ever achieve the feat.

People line up to grab food at the Everett Recovery Cafe on Wednesday, Dec. 4, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Coffee, meals and compassion are free at the Everett Recovery Cafe

The free, membership-based day center offers free coffee and meals and more importantly, camaraderie and recovery support.

Devani Padron, left, Daisy Ramos perform during dance class at Mari's Place Monday afternoon in Everett on July 13, 2016. (Kevin Clark / The Herald)
Mari’s Place helps children build confidence and design a better future

The Everett-based nonprofit offers free and low-cost classes in art, music, theater and dance for children ages 5 to 14.

The Everett Wastewater Treatment Plant along the Snohomish River on Thursday, June 16, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Everett water, sewer rates could jump 43% by 2028

The rate hikes would pay for improvements to the city’s sewer infrastructure.

The bond funded new track and field at Northshore Middle School on Thursday, Oct. 24, 2024 in Bothell, Washington. (Courtesy of Northshore School District)
Northshore School District bond improvements underway

The $425 million bond is funding new track and field complexes, playgrounds and phase one of two school replacements.

A salmon carcass lays across willow branches in Edgecomb Creek on Thursday, Jan. 30, 2025 in Arlington, Washington. (Olivia Vanni / The Herald)
Tribes: State fish passage projects knock down barriers for local efforts

Court-ordered projects have sparked collaboration for salmon habitat restoration

The Everett Municipal Building on Thursday, Feb. 29, 2024 in Everett, Washington. (Annie Barker / The Herald)
Everett council approves $111 million construction of sewer project

The Port Gardner Storage Facility, in the works for more than a decade, will help prevent overflows of the city sewer system.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.