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Ulster County audit committee reviews 2024 audit plan; auditors flag GASB 101 and three federal program audits
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Summary
External auditors updated the Ulster County Audit Committee on 2023 deliverables and the 2024 audit timetable, identified two significant audit risks and said GASB 101 implementation may increase compensated‑absence liabilities. Auditors also outlined three single‑audit programs to be tested in March.
At an Ulster County Audit Committee meeting, auditors from O'Connor Navy updated the committee on 2023 audit deliverables and presented the planning schedule and risk assessment for the 12/31/2024 financial statement and single audit.
Auditors reported that the 2023 financial statements were issued on Sept. 27, 2024, and that the county’s single audit had been uploaded to the Federal Audit Clearinghouse and submitted. Melissa from O'Connor Navy said two agreed‑upon procedures (AUPs) — one for the jail commissary and one for the Resource Recovery Agency — had drafts for 2022 and 2023 provided and were under review; the firm was awaiting representation letters before issuing final reports. The auditors also said they had received a final assigned‑manager representation letter for the New York State Department of Transportation compliance audit and expected to issue that engagement shortly.
For the 12/31/2024 financial statement audit, the auditors described the planned timetable: preliminary control testing already occurred Jan. 6–7; year‑end fieldwork is scheduled from June 2 through June 20; draft financial statements are expected in July or August; and issuance must occur by September to meet single‑audit timing requirements. Melissa said, “We will come back to do our year end audit procedures… The financial statements will be drafted, and they will be provided in July or August,” and that the county must meet the single‑audit issuance timeline to remain compliant.
Auditors identified two significant, risk‑focused areas for the engagement. The first, described as a presumed risk by the AICPA, is improper revenue recognition due to fraud; the second is management override of internal controls, which the audit team plans to address through control testing and journal‑entry testing. The audit scope will include confirmations of cash and cash equivalents with banks, testing of revenue recognition and accounts receivable (including subsequent receipts and Department of Social Services reconciliations), accounts payable and accrued expenses, fund balance reserves, payroll and retirement and debt service items, property and equipment, bonds and other indebtedness, and pension and OPEB liabilities.
On single‑audit work, the auditors said they had preliminarily identified three federal programs for testing: the Social Services Block Grant, foster care, and child support services. Testing for those programs is planned for the week of March 3, with the possibility of additions once the final Catalog of Federal Domestic Assistance (CFDA/CIFA) information is finalized.
Auditors warned the committee that GASB Statement No. 101 implementation would apply for the year ended Dec. 31, 2024, and could increase the county’s compensated‑absences liability depending on which benefits are included. Melissa said, “You might see that compensated absences liability increase this year for 12/31/24,” and later clarified that, in her experience, the increase is generally marginal but depends on the number and types of benefits the county recognizes. In response to a committee question about where the change would appear in the financials, the auditor answered the adjustment would affect net position rather than fund balance.
The audit team also described other routine elements of the engagement: rotating risk interviews with officials during the year to understand local risk drivers and controls, review of related‑party transactions, and the requirement that management supply a signed representation letter at the conclusion of fieldwork. The auditors provided a detailed appendix listing requested documents and schedules for the county’s finance and commissioner’s offices.
No formal audit policy changes or new county actions were adopted at the meeting; committee business at the start and close included routine procedural motions to approve prior minutes and to adjourn.
The auditors said they would follow up with the committee on outstanding AUP rep letters and provide final reports once required documentation is received.
