BDO outlines compressed FY2024 audit timeline, flags management‑override and grant risks

BDO partner Joy Mariner presented the FY2024 audit plan to the Anchorage Municipality Municipal Audit Committee on Oct. 30, saying auditors ‘‘are trying to kinda compress’’ the usual seven‑to‑eight month audit into approximately five to six months with a goal of issuing financial statements by March.

Mariner said interim fieldwork was nearing completion and that BDO plans to begin standalone audits for Anchorage Water & Wastewater (AWU), solid waste, the Port, and Civic entities in November. The auditors intend to perform centralized payroll, cash and investments and related testing in November to support the standalones, then move to grant and airport work.

On single‑audit timing, Mariner said the goal is to issue the single audit for FY2024 by June but that July is more likely: ‘‘the goal would be by June. I will say I think that's more likely to happen by July.’’

BDO emphasized a risk‑based audit approach and summarized repeating and significant risks for FY2024: potential management override of journals and top‑side entries, grant revenue recognition (including FEMA reporting), leases (notably at the port and some airport contracts), interfund transfers and due‑to/due‑from reconciliations, and charges for services revenue (water, wastewater, solid waste, court fees). Mariner asked committee members to identify any additional areas they want auditors to focus on during testing.

The auditors also noted an accounting standard referenced in the meeting as ‘‘101’’ that will change presentation of accrued leave (expanding which leave types must be accrued) and mentioned forthcoming standards (referred to in the meeting as 01/2002 and 01/2003) that will affect FY2026 disclosures. BDO said it will provide weekly status emails to the audit committee and is available for follow‑up meetings.

Committee chair Felix Rivera described the March timeline as ‘‘ambitious’’ but supported the effort to get the audit process back on a compressed schedule. No formal committee action was taken; auditors will return with progress updates and will incorporate any risk areas the committee identifies.

This plan is contingent on timely delivery of source documents and reconciliations from municipal staff; auditors reiterated they cannot begin certain single‑audit submissions until FY2023 is issued and the grant schedules are finalized.