Audit committee approves draft 2024 financial statements with edits and management response

The Grand County Audit Committee on Aug. 18 approved the draft 2024 financial statements and accompanying audit reports, asking auditors and county staff to incorporate editorial corrections and a modified management response about Tourism, Recreation and Travel (TRT) transfers and a subsequent‑events disclosure for 2025.

The action came after lead auditor John Hatterley delivered the audit package and described the firm's opinions and required disclosures. Hatterley said the auditors "issued an unmodified opinion" on the county's financial statements and noted that the federal single audit identified the airport grant as the major federal program for 2024. He also recommended stronger IT and cybersecurity practices for the county.

The vote directed staff and the lead auditor to implement the changes recommended by the reviewer Karen and to work with management to finalize language about the TRT transfers and the subsequent event in 2025. Commissioner Martinez moved to approve the financials with those conditions; the motion passed unanimously.

Why it matters: the audit opinion and the related single‑audit summary are the formal independent assessments county officials and outside grantors use when evaluating fiscal stewardship, grant compliance and the county's ability to secure future federal funding. The committee's approval begins the process of filing the audited package with the State and the Federal Audit Clearinghouse.

Key facts from the presentation: auditors reported (1) an unmodified opinion on the basic financial statements; (2) the airport program was the single major federal program in 2024 (approximately $7.6 million reported by auditors); (3) two compliance findings (budgetary overexpenditures in several funds and a deficit fund balance in the Debt Service Building Authority); and (4) no material weaknesses or significant deficiencies rising to the level of a material misstatement of the financial statements.

Auditors described a set of audit adjusting entries made during the engagement. Among the larger items they posted were: an accrued grant receivable for $1,400,000 (AEAS grant) recognized as 2024 revenue though cash was received in 2025; an EMS receivable of about $118,000; and a $617,000 transfer recorded between the general fund and the TRT mitigation fund to reflect mitigation transfers identified during audit work. Committee members asked that the audit notes clearly describe those adjustments.

Recommendations and next steps: the committee asked county staff to finalize the text about the TRT transfers and to add a subsequent‑events disclosure if a 2025 transfer is finalized before the auditors' report date. The auditors agreed to make spelling and formatting corrections identified by the reviewer and to circulate a final draft for the commission meeting the next day.

A separate, procedural motion to adopt the audit charter also passed unanimously; the committee intends to use the charter as the basis for future internal audits.

Ending note: the audit package will be finalized after the editorial and substantive clarifications requested by the committee and then filed with the state and federal audit clearinghouses as required.