Taholah School District Could Not Locate 16 of 21 Assets Checked by State Auditors

Taholah School District could not locate 16 of 21 assets selected for testing by state auditors and could not show that purchases totaling $238,755 were included in its inventory, according to a Washington State Auditor’s Office report.

The accountability audit found inadequate controls for tracking and safeguarding district property. It covered September 1, 2024, through August 31, 2025.

Auditors identified 10 purchases representing about 353 individual assets totaling $238,755 that the district could not demonstrate were included in its asset listing. “Additionally, we were only able to perform a physical verification for one of those items,” auditors wrote.

The report does not establish that the $238,755 in assets was stolen or lost. It warns that inadequate tracking increases the risk that public resources could be misappropriated or misused without prompt detection.

Auditors found the district had no written policy governing small, theft-sensitive assets, did not adequately update its inventory and did not perform independent periodic inventories.

During onsite work, they also found items outside the testing sample that were omitted from the asset listing, as well as assets without identification tags.

The district serves about 180 students in kindergarten through 12th grade in Grays Harbor County and operates on a $6.7 million annual general fund budget, according to the report. Its equipment includes Chromebooks and iPads for students and teachers.

The auditor’s office attributed the deficiencies to a lack of independent oversight and insufficient time devoted to implementing a formal policy. It recommended establishing written controls, promptly and accurately updating asset records, and conducting and documenting independent periodic inventories.

In its written response, the district said it would adopt and review its Small Attractive Assets Policy. It said the superintendent had identified a staff member who would be responsible for checking in future assets requiring tags, maintaining an accurate inventory and safeguarding district property.

The district also said the superintendent was reinstating its existing inventory of small, theft-sensitive assets. The auditor’s office said it would review the status of corrective actions during its next audit.

In most areas examined, auditors found district operations complied in all material respects with applicable requirements and provided adequate controls to safeguard public resources.