Infighting led to financial issues at this Pierce County city, state audit shows
AI-generated summary reviewed by our newsroom.
- State audit links financial mismanagement in Roy to elected officials' infighting
- Unreliable financial records and dwindling fund balance hinder city operations
- City leadership plans policy updates, training and long-term financial planning
An accountability audit published Tuesday found “significant concerns” in the oversight and monitoring of the city of Roy’s finances from 2021 to 2024, a result in part of infighting among the city’s elected officials.
According to the Washington state audit, “bank reconciliations were not performed consistently and timely, if at all,” and financial reports provided at council meetings and to state auditors “were inaccurate and not adequately supported by accounting records.”
The lack of control and oversight of the city’s finances “increases the risk that misappropriation or misuse of City resources could occur without timely detection, if at all,” and the city’s poor financial position also increases its “risk of not being able to sustain operations or provide sufficient levels of service” to the public, according to the audit.
About 800 people live in Roy, a historic lumber town in southern Pierce County that was incorporated in 1908. In a statement, the city of Roy said, “The Mayor and City Council remain committed to transparency, accountability and keeping the community informed as these improvements are implemented.”
Mayor Kimber Ivy, who was appointed in April 2023 by the council, told The News Tribune on Thursday there have been many communication issues among the mayor’s office, city council members and staff over the years, “But we’re definitely trying to find a way forward.”
“We have different versions of how to get to the same end goal,” Ivy said. “I think that our council members absolutely do want to see the city thrive and progress, just without any sort of growth. And unfortunately, in today’s day, without the growth, we’re not going to be able to continue.”
Other council members could not be immediately reached for comment Thursday.
As reported by the Nisqually Valley News, citizens have accused the city government of being “dysfunctional,” and city officials have publicly traded jabs and personal attacks amid pressure to address budgetary shortfalls and water quality issues.
Roy has an elected mayor and five elected City Council members, in addition to seven full-time and one part-time employee, per the audit. Those on staff include a clerk/treasurer, a deputy clerk, public works director, public works assistant, two police officers and a part-time court clerk. For 2021, 2022, 2023 and 2024, the City’s revenues approximated $1.31 million, $1.36 million, $1.35 million and $1.17 million respectively.
An outside contracted accountant paid by the city found Roy’s general-fund balance has declined significantly since 2022, according to the audit report. In 2023 the city’s general fund balance was $413,355 (a 19.3% drop from 2022). The fund balance dropped another 27.7% to total $298,779 in 2024 and fell another 23.7% to total $227,907 in 2025.
“The City was unable to provide us with reliable financial reports for 2024 or 2025 and has not filed the required 2024 annual report to our Office within 150 days of fiscal year-end,” the audit said. “Without these reports, we were unable to distinguish the unrestricted portion of the City’s cash and investments from the portion restricted for specific purposes such as water utilities or capital projects, as there are limitations on how these types of funds can be used.”
Turnover, internal disagreements led to accounting gaps
“Disagreements between the City’s elected officials while making business decisions were significant enough to negatively affect operations, in some cases stalling them,” according to the audit report, noting the City Council has approved budgets that “exceed available and estimated operating revenues.”
Additionally, the city has seen significant turnover in key positions since 2021, including the mayor, multiple council members and the clerk-treasurer position, the audit said.
“Since March 2023, five people have held the role of Clerk-Treasurer,” according to the audit. “The governing body has not dedicated the necessary time and resources to ensure staff understand and are trained in proper accounting procedures. Therefore, staff responsible for financial report preparation and oversight lacked the level of technical knowledge needed to ensure the reports are accurate and complete.”
The city of Roy has not fully reconciled its bank accounts to the general ledger since June 2023, and auditors found 10 instances between December 2021 and January 2023 when staff did not check monthly that its internal cash records and bank statements matched, the audit said.
“Delays in the availability of complete financial reports prevent City officials, the public and other interested parties from obtaining timely information. Such delays also hinder public transparency and our Office’s efforts to compile statistical and financial information that the Legislature and other parties use,” the audit said.
The city of Roy reported making some changes to address the problems identified in the audit, including updating some of its policies, adding training for all city officials and employees “and creating a more comprehensive long-term financial plan to protect our budget and services,” per the audit report.
