Placer County audit committee flags material weaknesses; pushes staff training and job‑spec updates
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Summary
The Placer County Audit Committee presented its annual report noting two material weaknesses tied to financial reporting for grant and capital projects; the committee urged expanded accounting training for departmental fiscal staff and updating county job classifications to reflect government fund accounting.
The Placer County Audit Committee reported to the Board of Supervisors on Oct. 7 that the county continues to be categorized as a “high‑risk auditee” following external audits that identified material weaknesses in financial reporting for fiscal year results.
Jay Panzica, chair of the independent audit committee, summarized findings from the county’s external auditors (LSL): two material weaknesses—one for an inaccurate reporting of roughly $2.4 million in grant expenditures in the capital projects fund, and another related to the improper recognition of $3.5 million in revenues in a Health & Human Services special revenue fund—were noted in recent audit reports. Those findings require additional federal audit scrutiny and, until corrected for two consecutive years, keep the county under a high‑risk classification that can lead to more frequent federal reviews and potential grant impacts.
The committee and Auditor‑Controller staff said steps are underway: countywide accounting training sessions, targeted single‑audit training with outside auditors and a community college accounting professor, and increased follow‑up auditing and remediation by the Auditor‑Controller’s Office. Andrew Pope, internal audit manager, told supervisors the county saw an uptick in whistleblower reports (about 20 in 2024‑25, a 186% increase) and that internal audit follows up and triages those allegations.
The audit committee emphasized a package of recommendations to reduce the risk profile: modernize job classifications so county accounting roles reflect governmental (fund) accounting needs; mandate or strongly incentivize training for staff who perform fiscal tasks outside the central accounting function; and increase departmental attention to timely, accurate grant and capital reporting. The Board accepted the annual report and thanked internal audit and the Auditor‑Controller team for work to address the issues.
The committee also presented two awards: the county’s finance team received the Government Finance Officers Association (GFOA) award for the county’s comprehensive annual financial report for the 24th consecutive year, and the Western Placer Waste Management Authority received recognition for financial reporting, with special recognition for Eric Otto’s leadership in the landfill authority’s accounting improvements.