PRESS RELEASE - City Successfully Completed 2024 Financial and Accountability Audit

Audit included local, state, and federal fund review by the Washington State Auditor’s Office.

February 27, 2026 PORT TOWNSEND – The City of Port Townsend Finance Department announces the results of its Annual Fiscal Year 2024 Audit from February 5, 2026. The audit concluded that City operations, in all material respects, were in full compliance with applicable state requirements and established internal policies. Independent audits by the Washington State Auditor’s Office (SAO) promote accountability and transparency, ensuring that the public can have confidence that taxpayer resources are managed responsibly and in accordance with the law. The City’s successful audit reflects its sustained commitment to maintaining a strong internal control environment and upholding the integrity of the City of Port Townsend’s financial operations. "These results reflect the diligent efforts of City personnel across all levels of the organization," stated Jodi Adams, Director of Finance and Technology Services. "Engaged and dedicated staff are essential to maintaining strong internal controls and a sound financial system."

Key Reviews from the FY24 Accountability Audit:

• Accounts payable – Ensures expenditures are properly authorized, supported by adequate documentation, accurately coded, and paid in accordance with established policies.
•  Payroll – Examination processes verifies compensation, overtime, and benefit deductions are accurate, authorized, and compliant with employment agreements, personnel policies, and applicable laws.
• Open public meetings – Evaluation includes review of compliance with meeting notice requirements, agenda procedures, preparation and approval of minutes, and lawful use of executive sessions, ensuring actions are taken in open session as required.
• Financial condition – Review of financial position, including fund balances, revenue and expenditure trends, cash flow, debt, and reserves, to identify potential risks and assess longterm financial stability.
• Procurement – Assessment of purchasing practices for compliance with competitive bidding requirements, statutory thresholds, and internal policies. 

The accountability audit included a review of the City’s contract with Gallup, Inc., which was executed in 2023 as part of the City’s annual work plan to invest in employee retention and development. The audit examined this agreement, along with other selected public works contracts, and concluded that the City complied with all applicable state procurement requirements.

The City is committed to continuous improvement in its internal control policies. In 2025 the City implemented new financial policies as enhancements to internal control processes, including:

• Interfund Loan Policy – This allows for the issuance of interfund loans, with Council approval. Interfund loans are a useful tool to manage cash between City funds, allowing the City to issue a temporary “loan” to itself. This policy formalizes that process.
• Vendor Payments – This policy ensures timely, accurate, and secure vendor payments while safeguarding City resources and strengthening internal controls.

Annual audits and favorable outcomes provide assurance to the residents of Port Townsend, agency partners, and other stakeholders that there is oversight, effectiveness, and continuous improvement in the City’s internal financial controls. 

                                                                           #                                                      #                                                          #

Learn about and find audit reports on the Washington State Auditor’s website: https://sao.wa.gov/reports-data/audit-report