Revised Code of Washington

Wash. Rev. Code § 43.09.260 (2026)

Local government accounting—Examination of local governments—Reports—Action by attorney general

✓ current as of May 2026

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(1) The examination of the financial affairs of all local governments shall be made at such reasonable, periodic intervals as the state auditor shall determine. However, an examination of the financial affairs of all local governments shall be made at least once in every three years, and an examination of individual local government health and welfare benefit plans and local government self-insurance programs shall be made at least once every two years.

(2) During the 2009-2011 fiscal biennium, the state auditor shall conduct audits no more often than once every two years of local governments with annual general fund revenues of ten million dollars or less and no findings of impropriety for the three-year period immediately preceding the audit period. This subsection does not prohibit the state auditor from conducting audits: (a) To address suspected fraud or irregular conduct; (b) at the request of the local government governing body; or (c) as required by federal laws or regulations.

(3) The term local governments for purposes of this chapter includes but is not limited to all counties, cities, and other political subdivisions, municipal corporations, and quasi-municipal corporations, however denominated.

(4) The state auditor shall establish a schedule to govern the auditing of local governments which shall include: A designation of the various classifications of local governments; a designation of the frequency for auditing each type of local government; and a description of events which cause a more frequent audit to be conducted.

(5) On every such examination, inquiry shall be made as to the financial condition and resources of the local government; whether the Constitution and laws of the state, the ordinances and orders of the local government, and the requirements of the state auditor have been properly complied with; and into the methods and accuracy of the accounts and reports.

(6) A report of such examination shall be made and filed in the office of state auditor, and one copy shall be transmitted to the local government. A copy of any report containing findings of noncompliance with state law shall be transmitted to the attorney general. If any such report discloses malfeasance, misfeasance, or nonfeasance in office on the part of any public officer or employee, within thirty days from the receipt of his or her copy of the report, the attorney general shall institute, in the proper county, such legal action as is proper in the premises by civil process and prosecute the same to final determination to carry into effect the findings of the examination.

(7) It shall be unlawful for any local government or the responsible head thereof, to make a settlement or compromise of any claim arising out of such malfeasance, misfeasance, or nonfeasance, or any action commenced therefor, or for any court to enter upon any compromise or settlement of such action, without the written approval and consent of the attorney general and the state auditor.

[ 2009 c 564 s 927; 1995 c 301 s 15; 1991 sp.s. c 30 s 26; 1979 c 71 s 1; 1965 c 8 s 43.09.260. Prior: 1909 c 76 s 8; RRS s 9958.]

Notes:

Effective date—2009 c 564: See note following RCW 2.68.020.

Effective date, implementation, application—1991 sp.s. c 30: See RCW 48.62.900.

School district budgeting violations not to affect duties of attorney general under RCW 43.09.260: RCW 28A.505.150.

Notes of Decisions

Cited in 17 cases (1 in the last 5 years), 1965–2025 · leading case: State Ex Rel. Graham v. Northshore Sch. Dist. No. 417, 662 P.2d 38 (Wash. 1983).

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State Ex Rel. Graham v. Northshore Sch. Dist. No. 417, 662 P.2d 38 (Wash. 1983). · cites it 32× “RCW 43.09.260. This statute further provides the Attorney General shall institute necessary legal action if the Auditor's report discloses any malfeasance, misfeasance or nonfeasance.”

Hoffer v. State, 755 P.2d 781 (Wash. 1988). · cites it 11× “First, RCW 43.09.260 required the Auditor to audit the Supply System and other public offices.”

San Juan Cnty. v. No New Gas Tax, 157 P.3d 831 (Wash. 2007). “RCW 43.09.260. [2] Before agreeing to represent the Municipalities, Foster Pepper PLLC was an active member of "Keep Washington Rolling," a coalition of groups formed to defeat Initiative 912 (I-912).”

San Juan Cnty. v. No New Gas Tax, 160 Wash. 2d 141 (Wash. 2007). “RCW 43.09.260. Before agreeing to represent the Municipalities, Foster Pepper PLLC was an active member of “Keep Washington Rolling,” a coalition of groups formed to defeat Initiative 912.”

State v. San Juan Cnty., 686 P.2d 1073 (Wash. 1984). · cites it 12× “The statute provides, in part: On every such examination, inquiry shall be made as to the financial condition and resources of the taxing district; whether the Constitution and laws of the state, the ordinances and orders of the taxing district, and the requirements of the…”

State v. O'connell, 523 P.2d 872 (Wash. 1974). · cites it 2× “It is first contended that no statute of limitations should be applicable, the theory being that the State was required under RCW 43.09.260 to bring this action on behalf of all of the appellants.”

State Ex Rel. O'Connell v. Port of Seattle, 399 P.2d 623 (Wash. 1965). · cites it 2× “Pursuant to the authority vested in him under RCW 43.09.260, directing the attorney general to act upon the findings of the state auditor in his reports of examination of the operations of municipal corporations in this state, John J.”

Scott Paper Co. v. City of Anacortes, 578 P.2d 1292 (Wash. 1978). “The court further found the State estopped because although it was not a party to the contracts, state auditors had failed to find and bring to the attention of the City or the Paper Company the fact that water sales were below cost.”

In re the Recall of Kelley, 369 P.3d 494 (Wash. 2016). · cites it 2× “While RCW 43.09.260(1) states that the “examination of the financial affairs of all local governments shall be made at such reasonable, periodic intervals as the state auditor shall determine,’’ Knedlik does not allege this section as a legal basis for recall in the recall…”

State Ex Rel. Tacoma Sch. Dist. No. 10 v. United Pac. Ins., 612 P.2d 809 (Wash. Ct. App. 1980). · cites it 2× “RCW 43.09.260 authorizes the state Auditor to examine the financial affairs of every public office and officer.”

MacKey v. Graham, 663 P.2d 490 (Wash. 1983). “Although "state examiner" is not explicitly defined in the statutes, the position may be characterized in general terms as an assistant to the Auditor, for the purposes of auditing both local public offices, RCW 43.09.260, and other state departments, RCW 43.”

Eric Hood, V City Of Vancouver, 564 P.3d 1009 (Wash. Ct. App. 2025). “RCW 43.09.260(1), (3). If the state auditor finds noncompliance, it includes that finding in its audit report.”

Show all 17 citing cases →

— Wash. Rev. Code § 43.09.260(1) — 4 cases

In re the Recall of Kelley, 369 P.3d 494 (Wash. 2016). “While RCW 43.09.260(1) states that the “examination of the financial affairs of all local governments shall be made at such reasonable, periodic intervals as the state auditor shall determine,’’ Knedlik does not allege this section as a legal basis for recall in the recall…”

Eric Hood, V City Of Vancouver, 564 P.3d 1009 (Wash. Ct. App. 2025). “RCW 43.09.260(1), (3). If the state auditor finds noncompliance, it includes that finding in its audit report.”

In re Recall of Kelley (Wash. 2016).

— Wash. Rev. Code § 43.09.260(3) — 1 case

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