State Receives Clean Audit of its Local Government Investments
OLYMPIA, WA. – State Treasurer receives clean bill of health for its local government investment program, earning a favorable audit report of its financial statements.
“We make sure locals receive quality services for their invested surplus cash, gain reliable returns on their investment, and reap the benefit of our impeccably high investment standards. Receiving a positive audit report is reflective of that effort,” said Doug Extine, Deputy Treasurer of the Investments Division at the Office of the State Treasurer.
The findings of the audit, outlined in the annual Local Government Investment Pool Comprehensive Annual Financial Report (LGIP CAFR), show the program is fiscally well above board.
Eide Bailly, a nationally recognized independent auditing firm of certified public accountants, determined the LGIP’s schedule of investments is stated fairly in all material respects, and all presentations of financial statements strictly follow accepted accounting principles.
Additionally, the state’s LGIP CAFR has received recognition in the form of a Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for the last 22 years, a record the Office of the State Treasurer hopes to maintain with this latest publication.
“For the sake of government accountability and transparency, we produce this report as a detailed look into the top-notch portfolio management, accounting, and reporting we regularly practice while managing invested local government tax dollars,” Treasurer Davidson stated as the reason behind producing the annual report.
Treasurer Davidson understood the benefit of the LGIP back in his days at the county level, where he was elected to four consecutive terms as Benton County treasurer before elected state treasurer. Recognizing the valuable opportunity to invest with the LGIP, he decided to bring Benton County in as a participating member back in 1996 during his first term.
Extine, who joined the State Treasurer’s Investments Division back in 1990, says he remembers when Benton County was one of the last two counties to join the LGIP. He credits Davidson for taking advantage of the investment opportunity.
“Before he became county treasurer, Benton County was one of the last hold-outs to participate in the LGIP. He was the one who brought them aboard more than 16 years ago” Extine recalled. “Now he is running the program, and it is performing very well,”
The LGIP now has participation from every county in Washington, as well as 234 cities and towns, 30 institutions of higher education, and 7 state agencies.
“As we prioritize safety, liquidity and return with our LGIP investments, the LGIP CAFR is intended to instill a confidence in our capability to manage the invested funds of our local partners. It is an honor to manage the LGIP, and to work with a team that strives for perfection,” Extine said.
