Skamania County may not be able to pay to maintain its current service levels because of a “declining financial condition,” the Washington State Auditor’s office reported Monday.During a financial audit, the auditor’s office determined the county’s general fund expenditures exceeded revenues in 2009, 2010 and 2011. By the end of 2011, the county had borrowed $1.15 million from restricted funds to cover general fund operations, the report said.“The county prepared annual budgets for 2010 and 2011 based on revenue estimates,” the report said. “When forecasted revenue was not received, the county did not take timely action to reduce expenditures.”The office said the county should:• Make a comprehensive plan, including detailed financial benchmarks and guidelines to target cash-flow issues.• Improve its general fund cash flow to decrease dependency on interfund loans.• Closely monitor financial activities and ensure timely and accurate financial information is provided to commissioners to help with decision-making.“The county is aware of the precarious financial condition and took significant steps at the end of 2011 and in the 2012 budget to meet this issue,” the county said in its response.The 2012 general fund budget was reduced by 30 percent. The county also took a $2.5 million loan and will repay almost $500,000 immediately and the remainder by selling surplus property, the county said. The county will also reduce staff and service levels to meet actual revenue projections, it said in its response.