Audit committee moves to include four component units in external auditor RFP and accelerates timeline

The Grand County Audit Committee voted July 7 to revise the county's external auditor request for proposals to include audits of four currently audited component units and to accelerate the RFP timeline. The motion by Commissioner Martinez, seconded by Commissioner Hadler, passed unanimously.

The committee said recurring late submission of component-unit financials has delayed the county's financial statement completion in prior years. Members suggested adding the county-funded option for component-unit audits to the RFP as an incentive to improve timeliness. Committee members were clear they cannot, under state law, unilaterally force independent elected districts to use the county-selected auditor; they can, however, offer to pay all or part of the audits as an encouragement.

Karen Curtin and other staff clarified that four component units are currently audited and should be included in the RFP scope: Canyonlands Healthcare Special Service District, Grand County Recreation Special Service District, Solid Waste Special Service District No. 1, and Grand County EMS Special Service District. Committee members noted three other entities (Grand County Special Service Water District, Thompson Special Service District, and Grand County Transportation Special Service District) are currently presented in county records but are not audited because they are not material or because they submit alternate reports.

Committee members discussed how component units are determined and were directed to note the financial statement disclosure (note 1, "financial reporting entity") for the official presentation of component units. Several commissioners said they would ask management to confirm which component units are audited and whether any can be moved to the county procurement program if governance or fiscal arrangements change.

The committee also reviewed the current status of the county's external audit and outstanding items necessary to complete the auditor's work. County Administrator Mark Tyner reported: "They are still in need of TRT journal entries, your review of the financials and the draft and any changes that need to be made." Tyner said drafts were outstanding for several component units and noted that pages 55 and 56 (note 12) need review and updating; Moab Valley Fire financials remain needed for documentation.

Staff committed to revise the RFP to include separate pricing for each component-unit audit (to allow partial selection) while preserving any aggregate-efficiency pricing the auditor may offer. The committee asked staff to post the revised RFP promptly and to send the draft to Administrator Mark Tyner and to Quinn Hall for review. A unanimous motion was recorded to move the RFP timeline forward with component-unit inclusion.

The committee discussed setting a plan to avoid repeated late financials. Options included offering to pay for some component-unit audits, tightening internal deadlines for component units (for example, an April 15 or April 30 submission), and coordinating earlier with the current auditor (Larson) and its lead, John Hatterley, on timing. The committee directed staff to consult with the clerk/auditor's office and Larson's team to identify remaining deliverables and expected completion dates.

The committee also approved the minutes of the June 13, 2025 audit committee meeting by unanimous vote during the July 7 session.

Actions taken: committee voted to move the RFP timeline and include the four audited component units (motion by Commissioner Martinez; second by Commissioner Hadler) and to approve the June 13 meeting minutes. Staff will return an updated RFP to the committee and work to post it as soon as edits are complete.