A Washington State Auditor’s Office report indicates that the Taholah School District could not account for 16 of 21 assets selected by state auditors for review. Additionally, the district was unable to demonstrate that purchases valued at $238,755 were entered into its inventory records.
Accountability Audit Findings
The audit, which examined operations from September 1, 2024, through August 31, 2025, identified inadequate controls for tracking and safeguarding district property. Auditors noted that ten specific purchases, comprising approximately 353 individual assets totaling $238,755, were not included in the district’s asset listing. For these items, auditors stated they were only able to perform a physical verification for a single item.
While the report does not establish that the assets were stolen or lost, it warns that weak tracking mechanisms increase the risk that public resources could be misappropriated without immediate detection.
Control Deficiencies
The review revealed that the district lacked a written policy for small, theft-sensitive assets, failed to adequately update its inventory, and did not conduct independent periodic inventories. During onsite work, auditors discovered items outside the testing sample that were missing from the asset listing, along with assets lacking identification tags.
District Context
The district serves approximately 180 students in kindergarten through 12th grade within Grays Harbor County. It operates with an annual general fund budget of $6.7 million, funding equipment including Chromebooks and iPads for both students and staff.
Auditor Recommendations and District Response
The auditor’s office attributed the deficiencies to a lack of independent oversight and insufficient time devoted to implementing formal policy. Recommendations included establishing written controls, updating asset records promptly, and conducting documented independent inventories.
In a written response, the district stated it would adopt and review its Small Attractive Assets Policy. The superintendent identified a staff member responsible for checking in future assets requiring tags, maintaining an accurate inventory, and safeguarding property. The district also confirmed the superintendent is reinstating the existing inventory of small, theft-sensitive assets. The auditor’s office will review the status of these corrective actions during its next scheduled audit.
In most other areas examined, auditors determined that district operations complied in all material respects with applicable requirements and provided adequate controls to safeguard public resources.