Financial Audits
Each year, the District is audited by the Washington State Auditor's Office. Each audit typically consists of three components: a financial statement audit, a federal program audit, and an accountability audit. The State audits the District's financial statements to make sure the District is in compliance with the Accounting Manual for Public School Districts in the State of Washington. The State also audits each major federal program to assure the District is in compliance with federal regulations and standards. Lastly, the State performs an accountability audit to make sure the District is in compliance with state laws, regulations, board policies, board procedures, and has sound internal controls to safeguard its public resources. If the District were to be non-compliant in any of these areas, the State would issue what is called an "audit finding."
The District has had clean audit reports in each of its last six years, one of the longest streaks of all King County school districts. Find all historical audit reports at the Office of the Washington State Auditor website, and you can find audit reports from the past six years listed below.
Learn About Our Current Audit
Tahoma School District has officially begun its annual audit process with the Office of the Washington State Auditor. Throughout the spring, the State Auditor will review the district’s compliance over the 2022-23 school year in the three areas listed above: financial accounting; federal programs; and state laws, regulations, board policies, board procedures, and internal controls
“The annual audit process is a thorough, outside look at how well the district is safeguarding public funds,” said Tahoma’s Chief Financial Officer, Bill Hernandez. “We are pleased to have no findings from the last six years, and we are committed to transparently communicating audit reports with our community, regardless of the auditor’s findings.”
Audit reports are one of the factors considered in determining a district’s creditworthiness.
In preparation for the recent refinance of our 2013 bond, the district maintained its Aa2 Moody’s credit rating, which represents fixed securities, like bonds, that are of a high quality and very low credit risk. This is the third highest credit rating assigned by Moody’s to fixed securities, and the highest possible credit rating for a district of our size. The sale was also backed by the Washington State School Bond Guarantee with a “Aaa” rating, which is the strongest bond rating possible, and is also partially determined by our historical clean audit reports.
The strong financial position of our district during the bond refinance saved local taxpayers $6.5 million over 10 years.
The district expects the State Auditor to publish its two 2022-23 audit reports in late spring or early summer 2024.