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Mohave County receives clean audit but auditors flag recurring IT control weaknesses
Summary
Walker & Armstrong reported an unmodified opinion on Mohave County's FY2025 financial statements but identified two recurring internal-control findings related to IT risk assessment and logical access/change-management documentation; county staff said mitigation plans are underway.
The Mohave County Board of Supervisors received the county—s FY2025 audit results on May 18. Curtis Bright of Walker & Armstrong told the board auditors issued an unmodified ("clean") opinion on the county—s financial statements, noting the statements complied with government accounting standards and there were no material misstatements requiring correction.
Bright summarized key changes and trends: implementation of new accounting rules affecting compensated absences and certain risk disclosures; a $4.5 million increase in current and other assets; capital-asset additions near $25 million offset by depreciation; declines in current liabilities largely tied to using ARPA funds; and a $6.6 million reduction in net pension liabilities connected to higher contributions in prior years.
On revenues and expenditures, auditors said overall revenues decreased just under $6 million (noting lower opioid-settlement-related revenue and decreased use of some prior-year federal funding), while taxes increased by $6.6 million driven by property and sales tax growth and investment earnings rose notably.
The single-audit (federal awards compliance) portion identified two recurring information-technology-related findings. Bright said auditors found the county lacked a fully documented, enterprise-wide IT risk assessment policy and had isolated instances where change-management tickets lacked required approval documentation. He and the county—s IT staff said both findings were repeats from prior years but the county has mitigation plans and close engagement underway with IT to address them.
Supervisor Leitman asked about "subscription liabilities" (cloud/software contracts) and Bright explained that these represent multi-year rights to use online software (licensing/subscription commitments) and can be recorded as liabilities similar to leases. The auditors said no corrections to financial statements were required and that management had signed the representation letter.
The audit presentation was informational; no board action was required. Supervisors thanked finance staff for responsiveness during the audit process and asked staff to circulate detailed audit workpapers and related path studies when applicable.
