WA: State concludes latest audits of Skagit Transit; no material weaknesses found

The Office of the Washington State Auditor identified one deficiency in two audits conducted of Skagit Transit.

The audits covered 2023.

A financial statement and federal grant compliance audit of Skagit Transit found one “significant deficiency in internal control,” but the deficiency was not considered a material weakness and “no instances of noncompliance were material to the financial statements of the Transit,” stated the audit report, which was received Tuesday by the Skagit Transit Board of Directors.

The deficiency dealt with pension reporting and compliance with generally accepted accounting principles.

The audit report recommended Skagit Transit strengthen its internal controls over financial statements. Within the report, Skagit Transit noted the pension issue was fixed.

Skagit Transit Accounting Manager Chris Arkle confirmed Wednesday the discrepancy has been fixed.

The public transit organization employs about 155 people and services about 900,000 customers per year, according to the audit report.

Skagit Transit, which has been led by CEO Crystle Stidham since 2023, had approximately $24.4 million in operating expenses in 2023, and is primarily funded through sales tax revenue, fares, and state and federal grants.

At Skagit Transit’s regular board meeting Wednesday, Sedro-Woolley Mayor Julia Johnson, who sits on the board, thanked Stidham for her efforts.

“I want to thank you for the work that you’re actually putting into revamping, revising policies, building policies, all of that, which is a great deal of work,” Johnson said.

“You’ve stepped into a position where there was a lot of asks and a lot of needs, and I think you and your staff have done that beautifully,” she said.

Anacortes Mayor Matt Miller, who is president of the Skagit Transit Board of Directors, said at Tuesday’s meeting the city of Anacortes had a similar deficiency in one of its past audits.

“... Again, appreciate the State Auditor’s office working with us and getting that fixed and getting us understanding it,” Miller said.

The second audit conducted for 2023 — an accountability audit — looked at Skagit Transit’s accounts payable, at open public meetings compliance and at financial conditions for distress indicators.

“In those selected areas, Transit operations 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 accountability audit report states.

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