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Independent auditor outlines Measure X financial and compliance audit for FY 2024–25
Summary
An MGO auditor told the Contra Costa County Measure X oversight committee the year‑two audit will cover 7/1/2024–6/30/2025 and include an opinion on the Measure X schedule of expenditures, an internal-control report, and any compliance findings; the auditor expects to issue an opinion by mid‑October.
MGO auditor Guyan told the Contra Costa County Measure X Community Fiscal Oversight Committee on June 9 that the year‑two audit will be a financial and compliance engagement covering the period 07/01/2024 through 06/30/2025. "It's basically a financial and compliance audit of the tax revenues derived from the Contra Costa County Measure X transactions and use of tax for the fiscal year 06/30/2025," the presenter said.
The auditor said the single report will contain several formal opinions: an opinion on the Measure X schedule of expenditures prepared under U.S. generally accepted auditing standards and government auditing standards, an independent auditors' report on internal control over financial reporting, and a compliance report. The engagement team includes David Bullock (audit partner) and Gui An Chim (assurance director). The auditor added that any management comments or recommendations identified during fieldwork would be included in a management letter.
Why it matters: the report provides independent assurance about whether Measure X revenues were recorded and spent in accordance with applicable requirements and whether internal controls are adequate to prevent material misstatement or noncompliance.
Auditing approach and timeline The presenter described a planning phase of information gathering followed by substantive testing. Supporting documents and client participation are expected to be requested in July–August, substantive audit procedures are likely in September–October, and the team aims to issue an audit opinion around mid‑October to allow for a November committee presentation. On sampling, the presenter said internal‑control testing often uses a minimum sample of about 30 items for sufficiently large populations, with additional substantive samples based on assessed risk.
Responsibilities and deliverables The auditor emphasized auditors' duties to exercise professional judgment and skepticism and to assess the risk of material misstatement and noncompliance, while county management is responsible for preparing the Measure X schedule of expenditures in conformity with U.S. GAAP, maintaining internal controls, and providing a signed management representation letter. "If there's any significant audit findings ... internal control related matters identified during the audit," they said, those will be communicated toward the conclusion of the engagement.
Next steps The auditor will send a client participation schedule listing documents and samples needed to start the fieldwork. Committee members agreed to schedule the auditor's full presentation in October to precede the committee's November meeting where the opinion and annual report recommendations will be discussed.
