Routt County approves 2024 audit engagement with $57,500 cap

The Routt County Board of Commissioners on April 22 approved and authorized the chair to sign an engagement letter with McMahon and Associates to perform the 2024 financial statement audit for a fee not to exceed $57,500.

County and audit staff told commissioners the original RFP base price was $47,500 but auditors requested a $10,000 increase tied to recently implemented Governmental Accounting Standards Board (GASB) pronouncements and related reporting burdens. The board voted to approve the engagement after a motion and second; the motion passed by voice vote.

Commissioners and staff discussed the drivers of the extra work: GASB Statement 87 (leases), GASB Statement 96 (subscription-based information technology arrangements, often called SBITAs), and GASB Statement 101 (compensated absences disclosures). County finance staff estimated ongoing workload increases from those standards: roughly 100–120 hours annually for leases, several hundred hours initially for SBITAs (92 contracts reviewed last year, about 10 required reporting), and about 65 hours this year for the compensated-absences work. Staff said those burdens primarily affect the county accounting department, not direct services to residents.

Auditors and county staff also noted federal auditing and grant-related requirements ("Yellow Book" government auditing standards) will require written internal control and fiscal/programmatic policies, which staff expect will add further documentation and accessibility tasks in coming fiscal years.

The board directed staff to proceed with the engagement under the approved not-to-exceed amount and to route the signed letter through county administrative channels.