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HomeMy WebLinkAboutCorrespondence - AuditorsGRANT COUNTY COMMISSIONERS AGENDA MEETING REQUEST FORM (Must be submitted to the Clerk of the Board by 12:00pm on Thursday) REQUESTING DEPARTMENT: AUDITOR REQUEST SUBMITTED BY: AMAN DA KI M CONTACT PERSON ATTENDING ROUNDTABLE: N/A CONFIDENTIAL INFORMATION: DYES ONO DATE: 02.24.2026 PHONE: (509) 754-2011 M KIM= Milli! OEM= ❑Agreement / Contract ❑AP Vouchers ❑Appointment / Reappointment ❑ARPA Related ❑ Bids / RFPs / Quotes Award ❑ Bid Opening Scheduled ❑ Boards / Committees ❑ Budget ❑Computer Related ❑County Code El Emergency Purchase El Employee Rel. ❑ Facilities Related Fn� Financial ❑ Funds ❑ Hearing ❑ Invoices / Purchase Orders ❑ Grants — Fed/State/County ❑ Leases ❑ MOA / MOU ❑Minutes ❑Ordinances El Out of State Travel El Petty Cash ❑ Policies ❑ Proclamations ❑ Request for Purchase ❑ Resolution El Recommendation ❑Professional Serv/Consultant ❑Support Letter ❑Surplus Req. ❑Tax Levies ❑Thank You's ❑Tax Title Property ❑WSLCB Please review & sign Accountability Engagement Letter for State Auditor's Office. If necessary, was this document reviewed by accounting? ❑ YES ❑ NO 0 N/A If necessary, was this document reviewed by legal? ❑ YES ❑ NO 0 N/A DATE OF ACTION: ' 9-te APPROVE: DENIED ABSTAIN k f D 1: D2: D3: DEFERRED OR CONTINUED TO: WITHDRAWN: 4/23/24 Office of the Washington State Auditor Pat McCarthy February 17, 2026 County Commissioners Grant County P.O. Box 37 Ephrata, Washington 98823 We are pleased to confirm the audit to be performed by the Office of the Washington State Auditor (we, us, our), in accordance with the provisions of Chapter 43.09 RCW, for the Grant County (you, your). This letter confirms the nature and limitations of the audit, as well as responsibilities of the parties and other engagement terms. Office of the Washington State Auditor Responsibilities Accountabilibv Audit We will perform an accountability audit of compliance with applicable state laws, regulations, and policies, and of controls over the safeguarding of public resources for the fiscal years ended December 31, 2023 and 2024. The audit will be conducted in accordance with provisions of RCW 43.09.260 and the Office's audit policies, which include policies specific to these types of audits and general audit policies. Our general audit policies apply to all our engagements and incorporate the requirements of Government Auditing Standards, as applicable, on topics such as communications with auditees, independence, audit evidence and documentation, and reporting. An accountability audit involves performing procedures to obtain audit evidence about compliance and controls in areas selected for audit. In keeping with general auditing practices, we do not examine every transaction, activity, policy, internal control, or area. The areas examined and procedures selected depend on the auditor's judgment, including the assessment of the risks of fraud, loss, abuse, or noncompliance. Our responsibility is to issue a written report describing the overall results and conclusions for the areas we examined. Data Security Our Office is committed to appropriately safeguarding the information we obtain during the course of the audit. We have entered into a data sharing agreement with the County to ensure compliance with legal requirements and Executive Directives (Executive Order 16-01, RCW 42.56 and WaTech policies and standards) in the handling of information considered confidential. Insurance Building, P.O. Box 40021 0 Olympia, Washington 98504-0021 0 (564) 999-0950 0 Pat.McCarthy@sao.wa.gov Responsibilities specific to this engagement Additionally, we will: • Provide the County with advanced notification if we identify issues that require further audit work and increase audit costs. • Participate in weekly progress meetings to discuss the status of the audit plans for future weeks. At those meetings, we will provide information on the departments we will work in and the audit objectives we will be addressing. • Interact with staff professionally and respectfully and communicate needs and issues in a timely manner. We will notify the County the previous day, if we know that audit staff will not be onsite the subsequent day(s). • Provide written correspondence during the course of the audit through email to the audit liaison, Mandy Kim, CFO. • Provide advance notice when a scheduled meeting is to be cancelled. • Allow the County seven days to provide a written response to any findings. Reporting levels for audit issues Issues identified through the auditing process will be communicated as follows. Failure to appropriately address audit issues may result in escalated reporting levels. • Findings formally address issues in an audit report. Findings report significant results of the audit, such as significant deficiencies and material weaknesses in internal controls; misappropriation; and material abuse or non-compliance with laws, regulations, contracts or grant agreements. You will be given the opportunity to respond to a finding, and this response, or a synopsis of it, will be published in the audit report. • Management letters communicate control deficiencies, non-compliance, misappropriation, abuse, or errors with a less -than -material effect on audit objectives. Management letters are referenced, but not included, in the audit report. • Exit items address control deficiencies, non-compliance, abuse, or errors that have an insignificant effect on audit objectives. These issues are informally communicated to management and are not referenced in the audit report. Client's Responsibilities Management is responsible for the accuracy and completeness of information provided to the auditor and will provide the Office of the Washington State Auditor with: • Unrestricted access to people with whom the auditor wishes to speak. • All. information that is requested or relevant to auditor requests. • Notification when any documents, records, files, or data contain information that is covered by confidentiality or privacy laws. • Adequate workspace and conditions, including interacting with auditors professionally and respectfully and promptly communicating about any issues and concerns. Moreover, our audit does not relieve management or the governing body of their responsibilities. Management's responsibilities, with oversight from the governing body, include: • Selecting and applying appropriate administrative and accounting policies. • Establishing and maintaining effective internal controls over financial reporting, compliance, and safeguarding of public resources. • Designing and following effective controls to prevent and detect fraud, theft, and loss. • Promptly reporting to us knowledge of any fraud, allegations of fraud or suspected fraud involving management, employees or others, in accordance with RCW 43.09.185. • Ensuring compliance with laws, regulations and provisions of contracts and grant agreements. Responsibilities at the conclusion of the audit At the conclusion of our audit, the County will provide us with a letter to confirm in writing certain express and implied representations made during the course of the audit. This letter includes representations regarding legal matters. A separate letter may be needed from the County's legal counsel. Office of the Washington State Auditor will publish the audit report. The County may not publish any document containing the audit report that has any change or modification to its contents without our express written consent, including the financial statements, supplementary and other information referenced in the auditor's report. You should contact us if any changes are needed to the audit report or its content. Likewise, we will contact you if we subsequently discover any need to change our report. Management and the governing body are also responsible for following up and taking corrective action on all audit findings, including, when applicable, preparing a summary schedule of prior audit findings and a corrective action plan on the County's own letterhead. Estimated Audit Costs and Timeline We estimate the cost of the audit work to be $77,605, plus estimated charges for travel time of $2,650, travel costs, and other expenses, if any. Invoices for these services will be prepared and presented each month as our audit work progresses. We anticipate our reports will be published on our website at www.sao.wa.gov and be available to you and the public as outlined below. These estimates are based on timely access to financial information and no significant audit reporting issues. The estimated cost and completion date may change if unforeseen issues arise or if significant audit issues are identified necessitating additional audit work. We will promptly notify you if this is the case. Report Date* Independent Auditor's Report on Accountability April 2026 *Report Issuance Dates Are Estimates Only The audit documentation for this engagement, which may contain confidential or sensitive information, is the property of SAO and constitutes a public record under Chapter 42.56 RCW. Subject to applicable laws and regulations, appropriate individuals, as well as audit documentation, will be made available upon request and in a timely manner to appropriate auditors and reviewers, County's management and governing body, and federal agencies, for purposes of a public records request, a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. The audit documentation for this engagement will be retained for a minimum of five years after the report release (publish) date in accordance with the public records retention schedule established by the Washington Secretary of State. Expected Communications During the course of the audit, we will communicate with the County's selected audit liaison, Mandy Kim, CFO, on the audit status, any significant changes in our planned audit scope or schedule and preliminary results or recommendations as they are developed. The audit liaison is responsible for regularly updating management and the governing body on these matters. We may also provide direct communication of these matters to management and the governing body as needed or upon request. Please contact us if any events or concerns come to your attention of which we should be aware. We will expect the audit liaison to keep us informed of any such matters. Audit Dispute Process Please contact the Audit Manager or Assistant Director to discuss any unresolved disagreements or concerns you have during the performance of our audit. At the conclusion of the audit, we will summarize the results at the exit conference. We will also discuss any significant difficulties or disagreements encountered during the audit and their resolution. By signing and returning this letter, you acknowledge that the foregoing is in accordance with your understanding. Please contact us with any questions. We appreciate the opportunity to be of service to you and look forward to working with you and your staff. Sincerely, Mandy Wilson, CPA, Audit Manager 2/9/26 Office of the Washington State Auditor County Response: This letter correctly sets forth our understanding. County Com 'sinner DATE 79. K� Mandy Kim, CFO 2.24.2026 DATE