County approves auditor contract addendum as state flags single-audit delinquency

Mariposa County supervisors approved a consent agenda on Aug. 5 that includes an addendum to the county's auditing contract with Smith & Newell intended to complete overdue financial audits and remove a state "high risk" designation. The board voted 4-0 to approve the consent agenda. The addendum described in public comment would pay Smith & Newell up to $73,700 to finish the fiscal year 2023–24 audit and up to $78,120 to complete the fiscal year 2024–25 audit; the county administrative officer described those steps as aimed at curing the single-audit delinquency. County Administrative Officer Joe Lynch told the board that the California Department of Community Services and Development (CSD) placed Mariposa County on notice for not having its single audit done and designated the county as high risk. Lynch said state departments share that high-risk designation with other agencies, which could jeopardize contracts and funding. He cited LIHEAP and some Caltrans contracts as examples of programs that could be at risk if the audit is not completed. Lynch said the county and the auditor agreed to a schedule intended to complete the year-2024 audit before the end of the calendar year; if completed timely, CSD would remove the high-risk designation. He also said the scope of the addendum includes completing the county’s fiscal year 2025 audit by the standard due date (March 31, 2026) to return the county to a regular reporting cycle. Lynch said the county has agreed to respond to auditor requests within five days to speed the work. The boardors expressed support for county staff to assist where needed. Supervisor Chair (who led the meeting) and other supervisors emphasized LIHEAP’s importance to county residents and asked to be informed about progress. No new formal action beyond the consent vote was taken at the meeting.