Chehalis organizations that receive tourism funds from lodging taxes collected by the city no longer have to submit to an external audit every five years.
The Chehalis City Council voted unanimously on Monday to rescind the requirement it installed in 2013 and that took effect in 2015. The idea was to add another layer of protection to city funds as well as those involved in organizations receiving the funding. Further inspection caused Mayor Pro-tem Terry Harris to deem the mandate a “knee-jerk reaction.”
The funds are given out on a reimbursement basis after completed work is approved by city staff and applicants already submit a litany of documents to the city including tax filings, bank statements and balance sheets.
The cost of having an audit completed by a licensed member of the American Institute of Certified Public Accountants can cost upwards of $10,000, an amount that has likely been prohibitive to organizations such as small nonprofits that would otherwise apply for city grants.
“I have to make light of the ability of the council to look at some action they did years ago and deem it overkill, and then roll it back,” councilor Bob Spahr said.
No new requirements replaced the repealed audit stipulation. The Lodging Tax Advisory Committee, chaired by Harris, will continue reviewing applications and the financial information attached to them.
