Image of a copy of the audit report with Lynnwood City Hall on January 19, 2026, in the background. Auditors found the city lacked adequate internal controls to protect public funds from internal and external threats involving electronic payments. The BARS Manual requires governments to adopt policies establishing effective internal controls for electronic funds transfers. State auditors recommended that Lynnwood develop written policies and procedures for electronic payroll payments that incorporate the required BARS elements. The management letter stated it is intended for the information and use of management and the governing body as recommendations to strengthen internal controls.