Independent auditors issue unmodified opinion on Chautauqua County 2024 financials; management letter flags grant reimbursement timing

Drescher & Malachy presented the independent audit for Chautauqua County for the year ended Dec. 31, 2024, and told the Audit & Control Committee they expect to issue an unmodified (clean) opinion on the county’s basic financial statements.

Erica Handley, director at Drescher & Malachy, said the firm found no material weaknesses or significant deficiencies and no compliance findings in the single-audit testing of five federal award programs (Child Care Development Block Grant, Medical Assistance Program, American Rescue Plan Act, Child Support Enforcement, and SNAP). The firm’s work also included the required auditor communication letter and an internal management letter. The auditors said their only notable management comment — echoed from prior years — concerns the timing of grant reimbursement submissions and recommended that departments submit reimbursement requests in a more timely manner to avoid delays in receiving funds.

Handley walked the committee through selected financial results: general fund expenditures increased about $11 million (driven primarily by increases in economic assistance and social services), and revenues were lower than the prior year’s high that incorporated more ARPA recognition (about $4 million recognized in the current year versus about $11 million in the prior year). The audit noted a general fund balance decrease of about $7.2 million and an unassigned (available) fund balance of about $38.47 million, equal to roughly 13.4% of total appropriations.

For the county road and road machinery funds, auditors said fund balances decreased slightly; road machinery expenditures rose modestly because of increased costs such as fuel, salaries and overtime. The auditors reported full cooperation from county staff and said all audit staff were independent of the county.

Committee members asked about the scope differences between the auditors’ work and state comptroller reviews; auditors explained the county’s external financial audit focuses on the financial statements while state reviews may target detailed internal-control or compliance areas. The auditors also noted the county has taken steps to strengthen internal controls and vendor onboarding processes to reduce fraud risk.

The committee accepted the presentation and thanked county finance staff for their cooperation.