,,

Washington State Auditor Brian Sonntag

May 14, 2012 Board of Directors

Everett School District No. 2

Everett, Washington ManagementLetter This letter includes a summary of specific matters that we identified In planning and performing our accountabi6ty audit of the Everett School District No. 2 from September 1, 2010 through August 31, 2011. We believe our recommendations will assist you in Improving the District's Internal controls and compliance In these areas.
We will review the status of these matters dUring our next audit. We have already discussed

our comments with and made suggesUons for improvements to District officials and personnel. If you have any further questions, please contact Casey Dwyer at (425) 257-2137.
We would also like to take this opportunity to extend our appreciation to your staff for the
cooperation and assistance given d uring the course of the audit.

Sincerely,

~y~
Casey Dwyer, Audit Manager Attachment

.'

Manage men t Letter Everett School District NO.2 Septemb er 1, 2010 throug h Au gust 31, 2011

Take home vehicles and f uel use

Everett School District owns five vehicles assigned to department supervisors and manager s
who take them home on a reg ular basis. The combined expenses of the five vehicles from September 1. 2010 through A ugust 31, 20 11 we re $23, 285. We noted the following interna l co ntrol w eak nesses and instances of noncompl iance w ith state

Jaw related to the five take home vehicles.

The District does not have written policies or procedures related to use and monitoring of
take hom e veh icles and fuel consumption. There is no ove rsight or docu mentation of the use of take home vehicles and fuel consumption to ensure these public asse ts are adequately safeg uarded fro m misuse. The District did not adeq uately mark th e five tak e home vehicles in acco rdance with state law (RCW 46 .08.065(1 . Decals idenUfying the vehicles as District property and for official use we re not of contrasting colo r to the vehicle itself. Upo n notification of this issue the District began remarking the ve hicles.

Without adequate mon itorin g of the ve hicle and fuel use, the District cannot ensure vehicles and fuel are only used for official District purposes. Also, deca ls w hic h are the same or very similar color as the ve hicle make it less likely to be see n by the public when the vehicle is in use. We reco mmend the District establish an d follow vehicle and fue l use policies and procedures to ens ure adeq uate monitoring of public resou rce s and appropriate use of ve hicles . We also reco mm end the Distri ct ensure that all vehicles are marked as requi red by state law to ensure they are adequately identified as public ve hicles.