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County auditors: Wayne County and Land Bank financial audits delayed past March 31; extension filed
Summary
Plante Moran told Wayne County the FY2024 county and Wayne County Land Bank audits could not be issued by March 31 because requested information remained unreviewed. County officials said an extension was filed March 21 and that cyberattacks hindered document recovery.
Commissioners were told the independent auditor Plante Moran will not issue opinions on Wayne County's fiscal year ended Sept. 30, 2024, financial statements by the March 31 deadline because auditors have not received all requested information.
Auditor General Marci Koro said Plante Moran informed the committee that both the county audit and the Wayne County Land Bank Corporation audit could not be completed by March 31 because “all requested information required to render an opinion has not been reviewed.” Koro explained the land bank audit cannot be issued separately and must be released in concurrence with the county financial statements.
The county's deputy chief financial officer for management and budget, Yogesh Kisani, told commissioners he filed for a state extension on March 21 and expected confirmation from the state treasury system within 48 hours. “I filed an extension last Friday, which is March 21,” Kisani said. He said cyberattacks across the county had forced staff to recreate records manually and were a primary reason requested documentation had not been provided to auditors.
Koro said her office has worked closely with Plante Moran and county finance staff, communicating daily to move the audit forward. Plante Moran audit manager Will Hamner and county staff exchanged documentation as problems were identified, she said.
Commissioner Killeen asked about consequences if the state denied an extension. Kisani said possible consequences could include impacts to revenue sharing and bond ratings but added he did not expect the state to deny an extension and said he has been in contact with a Department of Treasury administrator. He also said he did not believe the situation would harm the county’s credit rating because the delay was tied to an external cyber event and believed rating agencies would accept that explanation when the county and its advisors discuss the issue.
The committee voted to receive and file the two auditor communications. Commissioner Wilson moved to receive and file items 1 and 2; Commissioner Killeen supported the motion. The motion passed by voice vote.
The county will await state extension confirmation and further documentation exchanges with Plante Moran before the auditor issues opinions for the county and the land bank.
