Independent auditor gives Orange County unmodified opinion on 2024 financial statements; reports one material weakness and one significant deficiency

An independent audit of Orange County's fiscal 2024 financial statements concluded with an unmodified opinion, PB Mairs LLP told the Board of Supervisors at the county's meeting. The auditor said the unmodified opinion is the highest level of assurance available for government financial statements.

Andrea Nichols, director and audit manager with PB Mairs, reviewed three documents for the board: the annual comprehensive financial report (the financial statements), the compliance and single-audit report (federal funding), and the required communications to the board. Nichols said the audit produced an unmodified opinion on the basic financial statements and that there were no compliance findings for federal programs tested under Uniform Guidance.

Nichols said the compliance and single-audit report identified one material weakness and one significant deficiency in internal control but no findings that rose to the level of federal compliance exceptions. The report to board members summarized significant accounting estimates (for example, pension and OPEB assumptions) and listed recorded audit adjustments and a management letter that contains recommendations from the auditors.

The auditor highlighted that no significant new accounting standards were implemented this year but noted that Governmental Accounting Standards Board (GASB) Statement 101 related to compensated absences may have significant impact in the next year and should be monitored by county finance staff.

Nichols told the board she would be available to answer follow-up questions and encouraged members to review the management's discussion and analysis and the management letter for additional detail.

Ending: The board thanked the audit team for their work; no formal board action was required beyond the presentation.