2024 MARICOPA COUNTY PRESENTATION SLIDES (003).PDF
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Maricopa County Board of Supervisors Meeting—June 9, 2025 Summary of County’s Fiscal Year 2024 Annual Financial Report, Report on Internal Control and on Compliance, and Federal Single Audit Report Presented by: Melanie Chesney, Deputy Auditor General Michelle Walters, CPA, Financial Audit Manager TJ Wilhelm, CPA, Financial Audit Deputy Manager Who we are •Legislative agency •Provide impartial information and specific recommendations to improve operations and programs •Follow governmental auditing standards Why we are here Statute requires Board to require its auditors to present audit results and findings in a regular meeting—without use of consent agenda— within 90 days of audit’s completion Auditor responsibilities • Plan and conduct the audit • Obtain reasonable assurance • Consider internal controls • Perform tests over controls and/or compliance • Communicate significant matters • Express opinions • Report internal control deficiencies and instances of noncompliance County responsibilities • Accurately prepare and fairly present the County’s financial information • Design, implement, and maintain internal controls • Monitor compliance with laws, grants, and contracts • Make corrective actions for reported findings • Provide auditors with all information timely and by agreed-upon dates We issued 3 County audit reports 1. Financial statement audit report–dated December 19, 2024 2. Financial statement internal control and compliance audit report–dated December 19, 2024 3. Single audit report–dated March 31, 2025 Financial statement highlights—Primary revenues over the last 5 fiscal years—(in millions) Financial statement highlights—Primary expenses over the last 5 fiscal years—(in millions) Financial statement—Total revenues, expenses, and net position for the last 5 fiscal years—(in millions) Single Audit highlights—Federal expenditures for the last 5 fiscal years (in millions) Status of prior year-audit findings—County corrected 4 of 8 prior-year findings Finding 2023-01, Capital Asset misstatement—Fully corrected Finding 2023-02, IT risk management—Partially corrected Finding 2023-03, IT control procedures—Partially corrected Finding 2023-04, FICA and tax withholdings—Fully corrected Finding 2023-05, Superintendent-Juvenile Detention Education Program—Partially corrected Finding 2023-06, Superintendent Pcard purchases—Fully corrected Finding 2022-103, COVID-19 Emergency Rental Assistance—Partially corrected Finding 2022-104, Section 8 Project-Based Cluster—Fully corrected Report on Internal Control and on Compliance Financial statement finding 2024-01 County’s deficiencies in its process for managing and documenting its risks may put its operations and IT systems and data at unintended and unnecessary risk of potential harm County should: Ask responsible officials and management for input on policies and procedures for managing risk Implement policies and procedures to effectively manage IT-related risks Evaluate and manage the risks of holding sensitive information by identifying, classifying, and inventorying the information Report on Internal Control and on Compliance Financial statement finding 2024-02 County’s control procedures over IT systems and data were not sufficient, which increases the risk that the County may not adequately protect those systems and data County should: Monitor employees’ adherence to IT policies and procedures Restrict access to its IT systems and data Configure IT systems securely and manage system changes Secure IT systems and data Report on Internal Control and on Compliance Financial statement finding 2024-03 County’s initial financial statements contained a $6.6 million inventory misstatement, which increased the risk that those relying on the reported financial information could be misinformed County should: Ensure the financial statements are accurate and prepared in accordance with GAAP Ensure physical inventory counts and valuations are accurate and agree to its inventory management system Ensure employees responsible for physical inventory counts follow County policies Report on Internal Control and on Compliance Financial statement finding 2024-04 County School Superintendent’s Office risks receiving more or less State funding than statutorily allowed to support juvenile detention center education program operations because it did not accurately report program operations to the Arizona Department of Education (ADE) County should: Develop a process for separating program operations from the accommodation school or inform ADE it is not separating program operations Ensure the program receives the correct statutory funding Single Audit Report Federal compliance finding 2024-101 County Human Services Department failed to report $953,103 in subawards it made to 4 subrecipients for the Community Development Block Grants/Entitlement Grants County should: Immediately report on the Subaward Reporting System the required information for its subawards Follow the grant policies and procedures for reporting subaward actions equaling or exceeding $30,000 no later than month-end of the following month Review and update the tracking list for monitoring grants Maricopa County Board of Supervisors Meeting—June 9, 2025 Summary of County’s Fiscal Year 2024 Annual Financial Report, Report on Internal Control and on Compliance, and Federal Single Audit Report Presented by: Melanie Chesney, Deputy Auditor General Michelle Walters, CPA, Financial Audit Manager TJ Wilhelm, CPA, Financial Audit Deputy Manager