Board authorizes forensic audit engagement after annual audit raised concerns

The Gratiot County Board of Commissioners voted to authorize a forensic audit engagement with Yo & Yo after the county's financial statement audit raised questions that commissioners said require a focused investigation.

Ally (administration staff) presented an engagement letter from Yo & Yo describing a forensic audit to investigate questionable transactions arising from the financial statement audit. The board approved an initial scope covering January 2017 through the present and authorized Chair Owens to sign an amended engagement to extend the look‑back period if staff and counsel identified further need. The board also authorized payment of the retainer required to begin work.

Yo & Yo representatives said the duration of a forensic audit can vary: a focused review can be completed in about three months, while deeper examinations of multiple years can take nine months or longer depending on document availability and cooperation. Commissioners said some asked that the audit go back two additional years to provide full assurance to the public; staff and the vendor said expanding the time frame is possible but that the board should specify the additional target and expected procedures.

The forensic audit engagement is separate from the annual financial statement audit, which staff and outside auditors said is not designed primarily to detect fraud. Commissioners emphasized the need for independence in the investigation and said Yo & Yo will assign personnel with certified fraud examiner credentials.

The board requested periodic progress updates and directed staff to finalize the engagement letter so field work can begin.