Moses Lake School District did not comply with state budget requirements, had declining financial condition, audit finds

Mar 19, 2026

The Office of the Washington State Auditor published an accountability audit of the Moses Lake School District today, reviewing a tumultuous period in which the district’s financial condition was in decline. 

“The public is understandably frustrated,” said State Auditor Pat McCarthy. “As a former school board member, I want to recognize the important role the public plays in holding the District and elected board members accountable to ensure local public schools, a keystone of community life, remain operational and financially stable.” 

The report covered the period from September 2022 to August 2024, during which a number of financial decisions resulted in a significant budget shortall, staff reductions and other changes at the district. The audit found the district: 

  • ​​Had a declining financial condition, placing it at risk of being unable to meet financial obligations or provide services at current levels  

  • ​Did not comply with state budget requirements​ 

  • ​​Did not obtain approval from the Office of Superintendent of Public Instruction, as required by state law, before placing two enrichment levies on the ballot in 2024 

  • ​Lacked adequate controls to ensure it followed state procurement rules, and that its expenditures were allowable and supported​ 

The State Auditor’s Office published the audit after presenting its findings to the district’s school board Thursday evening. The full report, including the district’s responses to the findings, can be found on the Office website here: Moses Lake School District No. 161 Accountability Audit Report (PDF) 

In addition to the report’s findings, auditors noted other matters of concern in a letter to district management (PDF). The issues cited include properly accounting for the use of Associated Student Body funds, a subject of numerous Citizen Hotline submissions to the State Auditor’s Office.