A recent state audit gave the Town of Twisp a positive report for its management of large federal grants and for most other areas of town financial management, but recommended changes in the way the town handles cash receipts at the Wagner Memorial Swimming Pool.
Because Twisp has received more than $750,000 in federal grants in a year, the state conducted an audit of its grant management processes, along with a related financial audit. The town also underwent a routine accountability audit, conducted every two years, which examined payroll, cash receipting, self-insurance, compliance with conflict of interest requirements, procurement for public works projects, and internal controls over purchases and payments to vendors.
In most areas the town “complied with applicable state laws, regulations and its own policies, and provided adequate controls over safeguarding of public resources,” according to the audit report. As part of the accountability audit, which covered the period of Jan. 1, 2016-Dec. 31, 2017, the auditors found the town “did not have sufficient controls over cash receipting at the swimming pool, reducing its ability to detect or prevent a loss.”
In a management letter to the town, the auditor’s office cited concerns that included how refunds at the pool were documented; lack of a process to predict daily pool receipts, such as attendance records; and use of the cash drawer by multiple employees.
The letter said auditors identified $6,437 in refunded or voided transactions from 2016-2018 that had no documented reason or secondary review. “We need to improve our process at the pool for cash handling,” said Jackie Moriarty, Twisp clerk/treasurer.
The management letter recommended that town improve policies and monitoring procedures for refunds and voided transactions, and that pool staff document reasons for adjustments, which should be reviewed by someone independent from the receipt process.
