External auditors outline FY2024 audit plan, ARPA single‑audit and timeline for Cave Creek
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Summary
Lead audit partner Brian Hammerly presented the external audit plan for the fiscal year ending June 30, 2024, describing three deliverables (financial statements, a 'yellow book' compliance report, and a special ARPA/ COVID‑19 spending audit) and a timeline that aims for a final council presentation in December 2024.
Brian Hammerly, the lead audit partner for the town’s external audit, told the audit committee and council that the FY 2023‑24 audit of the Town of Cave Creek will produce three deliverables: audited financial statements, a single‑entity compliance report (the “yellow book” report) and a separate report on ARPA/COVID‑19 spending. The audit is required by state statute and by generally accepted auditing standards.
Hammerly said the audit team began preliminary work in mid‑June, has started internal‑control testing and began the federal single‑audit work for ARPA funds; the firm plans to return for a full week of fieldwork in September or October, draft reports in November and present final results in December 2024. He asked council members to contact him directly if they become aware of suspected fraud and said the firm will immediately report any confirmed fraud, waste or abuse.
Hammerly described a risk‑based approach and statistically valid sampling for tests of transactions and controls. He said auditors do not issue a separate opinion on the overall effectiveness of internal controls; rather, they test selected controls, report any deficiencies (management letter comments, significant deficiencies or material weaknesses) and give an opinion on whether the financial statements are materially correct. Councilor Rhodes pressed for clearer wording in the audit planning memorandum about sampling and control testing; Hammerly said he would revise the language to say the audit tests statistically valid samples of controls.
Hammerly also noted the single‑audit and the data‑collection form for federal reporting, and said the firm will provide a letter to counsel describing procedures performed. He said he would email contact information to the town manager and finance director, and that Sherry White, the town finance director, is coordinating federal uploads.
No formal vote was required for the audit kickoff; Hammerly offered one‑on‑one briefings for council members who want to raise specific audit focus areas.