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External auditor outlines FY25 audit timing, flags management override as a significant risk
Summary
Grant Davis of Mullen and Deakins described the FY25 audit plan, noted the county is a low-risk auditee for the single audit (20% sampling of federal awards) and told council management override of internal controls is identified as a significant audit risk.
Grant Davis, a partner with Mullen and Deakins, briefed the council on the planning phase for the county's fiscal year 2025 audit and described the audit timeline and scope.
Davis explained auditing standards to be followed—generally accepted auditing standards and government auditing standards—and told the committee the county will be subject to a single-audit compliance review if federal expenditures exceed the $750,000 threshold. “Anytime you ultimately expend, over $750,000 in federal money in a fiscal year, it triggers a compliance audit,” he said.
Davis said Horry County is classified as a low-risk auditee, which reduces the federal single-audit coverage to 20% of federal awards rather than 40%. He also said the auditors have identified management's override of internal controls as a significant overall audit risk and that they will plan testing accordingly. “We have identified management's override of internal controls as a significant risk to the overall audit,” Davis said.
Davis outlined interim work completed in May, final fieldwork planned for September–October and report delivery in November, and invited council members to raise areas of concern for targeted procedures.
