County accepts 2022–23 audits after auditors report $15.96 million in adjustments and recurring weaknesses

Auditors from James Moore & Company presented Baker County''s 2022 and 2023 audit results and the Board of County Commissioners voted to accept the reports after a workshop review that highlighted recurring internal-control problems and large adjusting journal entries.

The auditors told the board the firm issued a qualified opinion on the countywide financial statements because the county did not obtain an actuarial valuation for post-employment other-than-pension benefits (OPEB): "You would need to hire an actuary," said Ben Clark, director at James Moore, describing what would be required to remove that qualification.

That technical qualification was one of several findings auditors discussed. James Moore reported four material weaknesses that recurred from prior years: cash-to-accrual audit adjustments and preparation of financial statements; untimely year-end close and financial reporting; untimely bank reconciliations; and deficiencies in the schedule of expenditures of federal awards (SEFA). Auditors also repeated a separate compliance/controls finding related to the county''s EMS billing provider, where no SOC 1 report was available for a third-party vendor.

Why it matters: auditors said the county needed substantial year-end adjustments to the trial balance to get the financial statements into audit-ready form. The audit work identified $15,963,000 in gross adjusting journal entries across funds. James Moore also noted the county''s total governmental fund balance was $18.1 million at Sept. 30, 2023, with about $17.2 million unassigned; auditors flagged that fund balance is well above minimum reserve guidance but stressed correct year-end reporting remains essential.

Auditors described the timeline pressures that pushed the audits into delinquency and how state oversight pathways operate. "JLAC typically sends initial notices in October" and the Joint Legislative Audit Committee can set enforcement timelines, the auditors said; they told commissioners they would provide more proactive communication in future cycles and outlined a plan to send three formal status letters if an audit slips into delinquency. Zach Shallowfore, partner at James Moore, told the board: "We plan to basically send out three letters. One, come July, if an audit is delinquent, there is a written notification from us so that you all are fully up to speed."

Auditors told the board that, despite the delinquency discussions and the adjustments, "from our standpoint there''s no financial impact from the state funding perspective for this year's audit," citing the timing and communications they had received from JLAC and the Auditor General about distributions.

Board reaction and next steps: Commissioners pushed auditors and staff for process changes. "We shouldn't be waiting till we're delinquent before we know what's going on," said Commissioner Bennett during the workshop, and several commissioners pressed for a firm timetable for document submission and weekly status updates. Auditor Shallowfore said the firm would aim for earlier planning and to start field work sooner when clients can provide year-end trial balances and supporting schedules.

The board approved a motion in the regular meeting to accept the audits as presented by James Moore & Company; the motion carried. Commissioners also requested more detailed reporting and a plan from county staff and the auditor for ensuring the fiscal year 2024 audit meets statutory deadlines.

Ending: The auditors said they would continue weekly status updates and work with county staff to tighten the year-end close process for FY24; commissioners instructed staff to return with a calendar of deliverables and to monitor the auditor's proposed communications timeline.