Auditor General issues mostly clean financial opinion for Pima County but flags federal‑grant and IT control weaknesses

The Arizona Office of the Auditor General presented its fiscal‑year 2024 audit to the Pima County Board of Supervisors on Aug. 5, issuing an unmodified (clean) opinion on the county's financial statements but reporting multiple control deficiencies and federal single‑audit issues.

Lindsay Perry, Arizona—s auditor general, and Catherine Edwards Decker, financial audit director, told the board the county—s financial statements are reliable (unmodified opinion) but that the office identified two internal‑control findings related to information‑technology (IT) risk classification and access controls. The audit also produced four federal single‑audit findings and qualified opinions on five of seven major federal programs tested.

Key findings - IT controls: Auditors said the county did not sufficiently identify or inventory sensitive information across systems nor consistently document IT policies and account‑access procedures; the county was advised to identify and classify sensitive data, prioritize controls and implement access and authentication requirements. County management expects to address these measures by mid‑2025. - SEFA and federal reporting: The county initially submitted an inaccurate Schedule of Expenditures of Federal Awards (SEFA), with about $5.1 million understated in total federal expenditures and $357,000 understated pass‑through amounts; the county also missed the federal filing deadline (single audit submitted 38 days late). Auditors recommended staffing, training and a comprehensive federal funds listing; county expects correction by June 30, 2026. - Subrecipient monitoring: Auditors found the county did not perform required monitoring for 27 subrecipients and identified $347,345 in questioned costs related to Emergency Food and Shelter National Board Program subawards. This matter was previously reported and is partially corrected; county anticipates correction by June 30, 2026. - Program reporting controls and documentation: Auditors reported missing independent review of federally required reports and incomplete program documentation; they recommended written procedures, staff training and documentation practices.

County response and steps: County Administrator Lehi Lesher told the board the county has already moved the grants finance team from Grants Management and Innovation into the central Finance Department to strengthen oversight and has been staffing up. Finance director Andres Cuaron confirmed finance and grants teams are implementing auditor recommendations and meeting regularly with the Auditor General staff.

Auditors noted the county's net position increased in FY24 to about $2.7 billion, with $2.6 billion invested in capital assets and $426 million restricted; the unrestricted net position remained negative ($283 million) largely due to pension liabilities. Federal expenditures dropped about $3.6 million from FY23, partly as COVID‑era spending declined. The Auditor General identified prior‑year findings that are now either corrected or partially corrected.

Board action: The board voted unanimously (4‑0) to accept the audit results and to approve a related human‑resources memorandum before the meeting's July filing and presentation requirements were complete.

Why it matters: Clean financial statements support public confidence and borrowing capacity, but federal audit findings and IT weaknesses risk federal funding interruptions and future reporting errors. The county pledged corrective action, and staff outlined timelines and organizational changes intended to address the auditors' recommendations.

Speakers quoted include Auditor General Lindsay Perry and Financial Audit Director Catherine Edwards Decker; county officials who commented include County Administrator Lehi Lesher and Finance Director Andres Cuaron.