OLYMPIA – An audit report released Feb. 13, 2025, by the Washington State Auditor’s Office has identified significant deficiencies in the financial management and internal controls of the Multi Agency Communications Center for the fiscal years of 2022 and 2023. This report, designated as Report No. 1036601, highlights the need for improved financial oversight and compliance with new regulatory requirements. 

The audit noted that the MACC, which provides critical 911 emergency dispatch services in Grant County, lacked adequate internal controls, which "ensured accurate and reliable reporting of its financial statements."  

The findings revealed that the center underreported its subscription-based information technology arrangements (SBITA) liabilities in its financial statements by $789,176. The Center subsequently corrected this error in the final financial statements.  

“Our audit found significant deficiencies in internal controls over accounting and financial reporting that affected the Center's ability to produce reliable financial statements,” reads the statement.  

The audit was conducted in accordance with government auditing standards and covered the financial activity of the center from Jan. 1, 2022, to Dec. 31, 2023. The Center is required to prepare financial statements under the Budgeting, Accounting, and Reporting System Manual, a regulatory framework that diverges from Generally Accepted Accounting Principles. 

One of the primary issues identified was related to the evaluation process for SBITAs, which was inadequately implemented by the center.  

"The Center did not dedicate sufficient time or resources to researching the new changes and ensuring its calculations were correct,” the report said. 

The deficiencies were not just limited to financial reporting.  

“The center’s review process was ineffective in ensuring these liabilities were reported accurately before submitting the financial statements and schedules for audit,” reads the audit.  

The audit found that the discrepancies could significantly impact the financial strategies and credibility of the center. 

Following the identification of the issues, the center took steps to address the underreporting of liabilities. Despite rectifying the error in finalized statements, the audit recommended that MACC enhance its fiscal oversight by thoroughly researching new reporting requirements and strengthening its financial review processes. 

“The Agency is aware of the BARS reporting requirements and has conducted multiple training sessions on the subject. This was an error in the notes which has subsequently been corrected,” responded a representative from MACC. They also noted, “As a cash-based entity, our income is recognized when cash is actually received, and our expenses are recorded when they are actually paid. Hence, some liabilities may not appear in the same light as they do under GAAP standards.” 

Despite the deficiencies identified, the office issued an unmodified opinion concerning the presentation of the Center’s financial statements in line with the regulatory basis of accounting. However, an adverse opinion regarding compliance with GAAP was also noted, indicating substantial room for improvement in the overall financial reporting practices. 

The report recommends that the Center commit the necessary time and resources to ensure comprehensive adherence to the revised BARS Manual and equip management with improved training to enhance financial acumen. The auditors also suggested implementing a more thorough internal auditing process to verify compliance continually. 

The complete audit report can be accessed through the Washington State Auditor's Office’s website, serving to inform citizens and government partners on the standards expected in public financial management.