A mistake in an Island County financial statement did not represent any loss or theft of money and reduction in a fund balance, according to county officials.

The Washington State Auditor issued a finding against the county in a recently released audit report covering 2015.

The report states that auditors found errors that represent “significant deficiencies” in internal controls over financial reporting.

Specifically, the report states that county financial staff didn’t have adequate knowledge to properly implement a new accounting rule from the Government Accounting Standards Board for reporting on pensions. As a result, the ending net position for pension assets was overstated by $14.7 million, the report states.

County Budget Director Elaine Marlow said accounting standards, especially the new rule, are very complicated.

“Even the state auditor struggled with it a little bit too,” she said.

The county’s official response to the finding states that the county checked the financial worksheets with the state Auditor’s Office and received confirmation that the entries were correct. Still, county staff had concerns about the new rule and asked state auditor officials if they had the name of a company that could help. The Auditor’s Office replied that its staff was still trying to figure it out and didn’t have any names.

Later, the new audit team arrived and found that the new pension asset was not correct and the $14.7 million was recorded on the wrong line.

Marlow said the error was corrected as soon as the audit team pointed it out.

“Island County is committed to ongoing quality improvement and will strive to provide adequate staff training, and seek outside professional technical guidance to ensure accurate and timing preparation, review and reporting of the financial statements,” the county’s response states.