The Fort Worden Public Development Authority (FWPDA) has established a committee to more closely supervise its finances after a Washington State Auditor's finding disclosed deficiencies in internal controls that affected the FWPDA's ability to produce reliable financial statements.

After receiving the audit, which was published March 9, the FWPDA board designated its executive committee – chair Norm Tonina, vice chair Gee Heckscher, treasurer Jeff Jackson and secretary Jane Kilburn – as the audit committee. CEO Dave Robison and CFO Diane Moody are also in place to support the committee.

The executive committee meets monthly, with any audit-related topics to be scheduled for these meetings.

The committee met with auditor George Holk prior to the release of the final audit.

"I feel really good about this," Robison of the process. "We had a very complicated transition over the last few years and we are now getting our financial house in order."

After years of preparation, the PDA took over the management of the fort's campus portion in May 2014, now acting as an umbrella for the 13 nonprofits operating on the campus.

The state Auditor's Office conducted two reviews of the PDA – an accountability audit for 2012-2015 and a financial statement audit for 2014 and 2015. The first resulted in no findings, while the second identified the reporting deficiencies.

In 2014, beginning cash, revenues and expenditures and ending cash were understated in amounts adding up to $1,286,689, while in 2015 understated figures totaled $2,147,606.

None of the errors identified and reconciled during the audit altered the PDA's reported net income or annual cash reconciliations for 2014 or 2015, according to Robison.

Public agency financial audits occur every two years

"As a result of this audit," Tonina said in a press release, "the PDA is implementing new training, policies and procedures to ensure that internal controls are established and adhered to."