Item Coversheet
July 9, 2019

Finance Manager’s report to the State Auditors for 2018 (SR 19-072; T. Kellogg)

Administration / Tracey Kellogg, CPA, Finance Manager 
Prior Board Review:
Administration Committee, 6/26/19 


The 2018 Annual Financial Report (Exhibit A) was submitted to the State Auditors on May 29, 2019. The due date for the report was May 30, 2019. 


The District’s Government-Wide Net Position improved between 2017 and 2018 by $1.1 million, from a negative $4.7 million at the end of 2017 to a negative $3.6 million at the end of 2018. This improvement can be primarily attributed to the significant decrease in the District’s Pension Liability (see Note 7 – Long-term Debt, page 29 of Exhibit A).


The District ended 2018 with a surplus of $427,906, of which $250,037 is restricted unspent funds for the North Sound ACH and Kresge grants expected to be spend in 2019, and $130,124 of non-spendable funds for amounts due to the State of Washington for their portion of 4th Quarter 2018 Vital Statistics fees. 


The attached submission documents are unaudited. The State Auditor’s office (SAO) has scheduled fieldwork for the audit to begin on or about July 15, 2019, with a final report to be issued no later than September 30, 2019. An audit entrance conference with SAO has tentatively been scheduled for 11:30 a.m. at the July 24, 2019, Executive Committee meeting. An exit conference will be scheduled at the conclusion of the audit prior to the release of the audit report.

Board Authority


Recommended Motion

No action required. Briefing only.

2018 Annual Financial Report Submission (unaudited)