City of Lacey achieves full compliance in 2024 state audit 

The Washington State Auditor’s Office has given the City of Lacey a clean audit for 2024, reporting no deficiencies in any of the legal, regulatory or policy requirements reviewed. 

The findings were released on Monday, Aug. 11, during an exit conference presided over by Audit Manager Lisa Carrell and Lead Auditor Tony Cuevas. 

Covering the period from Jan. 1 to Dec. 31, 2024, the review included both an accountability audit and federal grant compliance audit. 

Cuevas announced the accountability audit found the city “complied in all material respects with applicable state laws, regulations and its own policies and provided adequate controls over the safeguarding of public resources.”  

The review examined financial and administrative processes, such as utility billing, purchasing practices and vendor payment processes. 

As part of the examination, auditors recalculated billing charges and late fees for selected accounts, checked procurement documents for compliance with bidding laws, state contracts and personal service contracts, and reviewed accounts payable transactions for appropriateness of disbursements. 

The state auditors also examined the city’s self-insurance unemployment program and confirmed controls to fund future claims. 

Meanwhile, compliance with the Open Public Meetings Act was verified through meeting minutes and executive session records. 

The city’s financial condition was also assessed, with no indicators of fiscal distress reported. 

For the federal grant compliance audit, Cuevas said the city also received an unmodified opinion. He said federal awards were spent for their intended purposes and in line with grant requirements, with “no significant deficiencies in internal control” and no reportable noncompliance. 

Carrell said the audit cost matched the original estimate provided before the review began. She noted the next audit will again cover accountability, financial statements and a single audit. 

City Manager Rick Walk acknowledged the contributions of the audit team and all departments. He said achieving full compliance depended on effective coordination among all departments. 

The full report, which has not yet been released, is expected to be posted on the Washington State Auditor’s Office website within one to two weeks.