Audit Reveals 16 Million Misclassification in Pierce County Library System

A recent audit from the Washington State Auditor's Office has revealed significant financial reporting discrepancies within the Pierce County Library System, with nearly $16 million in misclassifications identified for the years 2022 and 2023. The report noted that the library district misclassified approximately $4. 4 million in fund transfers and understated pension liabilities by $5. 7 million in 2022 and $5. 9 million in 2023.

The audit highlighted deficiencies in internal controls and a lack of adequate staff training as primary issues affecting the accuracy of financial statements. Kathleen Cooper clarified that the audit did not indicate any missing funds, but rather improper categorization. The library system acknowledged the findings, attributing the errors to understaffing from 2021 to 2023, and has committed to addressing the auditor's recommendations through improved training and review processes. Cooper noted that the library's proactive response is a positive outcome following such findings. The state auditor plans to assess the library system’s adherence to corrective actions in future audits, emphasizing the importance of accurate financial reporting and governance in public institutions.