State audit finds flaw in Carnation’s 1999 budget

Published 2:24 pm Thursday, October 2, 2008

CARNATION — City officials failed to amend the 1999 budget

to include a $531,000 expenditure, according to a recently completed

report by the state Auditor’s Office, but the city of Carnation was never in

danger financially.

In its report, the Auditor’s Office said Carnation’s 1999 general

fund budget equaled $1,107,754, but actual expenditures totaled $1,638, 258.

City Manager Woody Edvalson said the difference between the

two numbers reflected the city’s $531,000 purchase of land along West

Enwistle Street in 1999. According to the city of Carnation’s response to the

audit findings, which was included in the report, “expenditures were in

excess of budget appropriations due to an improperly recorded accounting

transaction at the end of 1999.”

Edvalson said by the time staff learned of the problem, it was too

late for the City Council to pass an ordinance that would have corrected

the budget.

“Once a budget year is closed out, you can’t go back in and amend

the budget,” he said.

The error was caught by staff earlier this year, and the city’s books

were corrected to reflect the land purchase, but Edvalson said they didn’t

realize a budget ordinance was needed to adequately fix the problem.

In its report, the Auditor’s Office recommended that “the City

Council monitor all expenditures and amend the appropriations as necessary to

prevent future overexpenditures,” and state officials thanked the city for

what they deemed a “prompt response” to prevent future errors.

The city, in its response, said such a review process is already in

place. Edvalson added that city officials have taken the audit report’s findings

to heart.

“The result is that we learned a lesson … and I think the [City

Council] has been very understanding of this learning process.”