External auditors give Placer County an unmodified opinion; accounting treatment for state advances corrected

LSL (Lance, Soll & Lunghard, LLP) presented an overview of Placer County’s Annual Comprehensive Financial Report and reported an unmodified audit opinion during the Audit Committee meeting on Jan. 13, 2026.

The presentation reviewed management and auditor responsibilities and summarized the ACFR’s Introductory, Financial and Statistical sections. LSL described items in its management letter intended to strengthen internal controls—specifically observations related to Treasurer bank reconciliations, accounting for prepaid expenses and the Schedule of Expenditures of Federal Awards. The management-letter items were not reportable findings; management has responded and will work with departments to implement corrective actions.

Auditor-Controller Andy Sisk told the committee that prior guidance from a former CPA firm had led to recognition of certain State advances as revenue in the Health and Human Services fund. After reevaluation for consistency with applicable Governmental Accounting Standards Board (GASB) guidance and consultation with LSL, the county corrected the accounting treatment for that unearned revenue.

LSL also summarized other engagements and the status of several audits, noting completed agreed-upon-procedure work for fire permits and issued reports for multiple entities, while the Single Audit was listed as in progress and several agency fieldwork items were scheduled.

The committee was told there were no material weaknesses reported for the year and that the county remains on track toward classification as a low-risk auditee. The Audit Committee’s next scheduled meeting is April 15, 2026.