Arizona Auditor General presents Cochise County FY2024 audit: county received unmodified opinion but auditors reported five findings

The Arizona Auditor General's Office presented its fiscal year 2024 audit of Cochise County during the board's July 22 meeting, reporting an unmodified (clean) opinion on the county's financial statements but identifying five audit findings: three financial statement findings and two federal single‑audit findings.

Terrence Stangel, financial audit manager for the Auditor General's Office, told supervisors the office conducts audits under US Generally Accepted Auditing Standards and government auditing standards and is required by Arizona Revised Statutes to present results publicly. "For fiscal year 2024, we reported an unmodified, or what we say, a cumulative opinion, which means the county's financial statements are reliable," Stangel said.

The auditors highlighted several financial trends and figures: the county's net position increased by about $29.9 million in fiscal year 2024; $139.6 million is recorded as invested in capital assets and $58.7 million is restricted, while the county reported a negative unrestricted balance largely attributable to net pension liabilities. Federal expenditures decreased from fiscal year 2023 primarily because pandemic‑related federal funds declined, the auditors said.

Renee (deputy manager) reviewed the reported findings and recommended corrective actions. The first financial statement finding concluded the county failed to provide timely and accurate financial information to auditors; the initial statements contained misstatements that delayed issuance and caused the annual financial report and single audit to be issued past the statutory deadline of March 31, 2025. Auditors recommended improved policies, independent review of journal entries and adherence to agreed deadlines; management plans to correct the deficiency by March 31, 2026.

A second finding related to the county's purchasing card program. Auditors identified $43,703 in food and beverage purchases on shared travel cards that did not comply with county policy, and described weak controls and training for a pilot travel card program. County management reported the pilot program was canceled in February 2024.

The third financial statement finding concerned an accommodation school district that did not retain supporting invoices for $53,638 of expenditures auditors tested. The district reported hiring an experienced business manager and management said the deficiency was corrected.

Auditors also reported two federal‑compliance findings. One involved the WIC (Women, Infants, and Children) program: for a sample of participants, Health and Social Services staff did not obtain signed rights and obligations forms during initial certification or recertification as required by state policy, affecting 15 to 62 participants tested. Management reported corrective actions completed by March 2025.

Stangel said the office issues three reports in connection with the audit: the county's annual financial report (with the opinion), a report on internal control and compliance (with financial statement findings) and the single audit report (federal compliance). He noted a brief two‑page financial highlights summary accompanies the reports. Board members thanked the auditors for the briefing and said they would review the documents posted on the county's agenda website.

Auditors recommended the county provide timely, accurate information to future audits, strengthen purchasing card controls and ensure program staff follow state eligibility and documentation policies for federal programs. County management provided responses in the report and set corrective action target dates where applicable.

The board took no immediate action beyond receiving the audit presentation; the audit reports and required corrective action plans will be posted as part of the county's records.