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Audit committee asks incoming auditor to re-examine airport fund accounting after internal review
Summary
The committee reviewed an EFG internal audit of airport accounts for 2019–2024 that concluded airport revenues were spent on airport activities, while the clerk auditor identified a separate discrepancy. Members directed the new internal auditor to reopen the review and seek reconciliations across multiple funds.
The Grand County Internal Audit Committee met June 4 and reviewed an internal audit by EFG of airport-related accounts dating from 2019 to 2024, then directed the incoming internal auditor to perform a more detailed follow-up review.
The EFG report, read into the record by a committee member, concluded that "it appears from this review that all airport revenues, including grants, were spent on airport activities." The presentation summarized EFG's methodology as a comparison of total revenues and expenditures; over the review period, expenditures were reported as $28,000,000 and revenues as $25,600,000, a shortfall EFG quantified as $2,200,000 with fund balances of $73,809.
Committee members flagged a separate review by the clerk auditor that initially identified about $1,100,000 that might need to be returned to the airport fund; that figure was later described by committee members as reduced to roughly $600,000 and still subject to further verification. One participant said the internal audit materials did not reconcile cleanly with the audited financial statements and suggested airport activity may be recorded across multiple funds, complicating efforts to match line items.
Members did not accept the EFG review as final. The committee agreed to add the airport accounts and related subfunds to the incoming internal auditor's workplan and to schedule a follow-up audit committee meeting with the new auditor present. The committee also asked the clerk auditor for a finalized estimate to inform next steps. A tentative meeting date of July 7 was discussed for onboarding and evaluation.
The committee additionally requested a detailed breakdown of restricted balances in Fund 47 and Fund 23 (including tourism-related contributions and rec/film convention receipts) to determine how contributions and transfers were classified in prior years and reconcile apparent 2022 reserves that later appeared to move to deficit positions.
Next procedural steps: the new internal auditor will be asked to reopen the airport review, the clerk auditor will try to provide a finalized estimate of any required transfers, and staff will supply a detailed listing of restricted subfunds for Funds 23 and 47 ahead of the follow-up meeting.
