Ulster County audit committee hears 2024 audit plan, approves Sept. minutes
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Summary
Auditors from O'Connor Navy told the Ulster County audit committee that 2023 statements were issued Sept. 27, 2024, and outlined 2024 fieldwork, the single-audit program list, two primary audit risks and the impact of GASB 101 on compensated‑absence liabilities.
The Ulster County Audit Committee approved the Sept. 17–20, 2024, minutes and heard auditors from O'Connor Navy outline the county's 2024 financial‑statement and single‑audit plan.
Melissa, of O'Connor Navy, said the 2023 financial statements were issued on "09/27/2024," and that the single audit was submitted to the Federal Audit Clearinghouse. She told committee members the firm combined the financial statements and single audit and has provided drafts of two agreed‑upon procedures (AUPs) — one for the jail commissary and one for the Resource Recovery Agency — for both 2022 and 2023 and that those drafts are under review and awaiting representation letters.
The auditors described the audit timeline and deliverables: preliminary control testing took place Jan. 6–7; year‑end fieldwork and substantive testing are scheduled for June 2–20; financial‑statement drafts are expected in July or August; and final issuance must occur by September to satisfy single‑audit timing requirements. Melissa said three federal programs are tentatively selected for single‑audit testing — the social services block grant, foster care and child‑support services — with testing scheduled the week of March 3, and the final list will depend on the county's CFDA/CIFA information.
On audit risk, Melissa said "There are 2 significant risks currently identified. The first 1 being improper revenue recognition due to fraud. Second risk is gonna be management override of internal controls over financial reporting." She said auditors will perform control testing and journal‑entry testing, confirm cash balances directly with banks, review revenue recognition and accounts receivable (including the Department of Social Services reconciliation), and test payroll, fund‑balance reserves, property and equipment, debt and pension/OPEB liabilities.
Melissa also warned the committee that GASB 101, related to compensated absences and effective Dec. 31, 2024, requires a broader assessment of vacation and sick‑time benefits and may increase the county's reported liability for compensated absences on the 12/31/24 statements.
Committee members asked for missing documents and clarifications during the presentation. One member asked specifically for the 2022 AUP promissory report; Melissa said both the 2022 and 2023 drafts were provided and should be in the shared drive but that the auditors remain dependent on the county's representation letters. Another member suggested annual employee attestations of no known fraud, waste or abuse; Melissa said she has not commonly seen that among her clients but would inquire with her partners about the practice.
The meeting closed after brief final remarks from the chair. Next procedural steps noted by auditors: provide required representation letters, complete single‑audit program selection once CFDA/CIFA is final, conduct single‑audit testing the week of March 3, and perform year‑end fieldwork June 2–20 ahead of July/August draft issuance.
