FINANCE COMMITTEE
Meeting Date: 11/3/25
Subject: Countywide FY23-24 Single Audit and FY24-25 Measure X Audit
Submitted For: Joanne Bohren, Auditor-Controller
Department: Auditor Controller
Referral No: N/A
Referral Name: Audits Review
Presenter: Sandi Bewley, Internal Audits Manager; David Bullock, Partner, MGO
Referral History:
On November 8, 1999, the Board established a policy and procedure for addressing the annual findings and recommendations of the County's external auditors. The procedure directs that the Board refer the annual Single Audit findings to the Finance Committee to review the audit findings and recommendations and identify the corrective actions taken or planned on each recommendation. This review encompasses the latest Single Audit report for Fiscal Year ending June 30, 2024. Also included for review is the Measure X FY24-25 Audit.
Referral Update:
FY23-24 Single Audit Results
An independent auditor, Macias, Gini & O’Connell, LLP, audited, in accordance with the auditing standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Contra Costa for the fiscal year ending June 30, 2024, and the related notes to the financial statements. The independent auditor also audited the County’s compliance with the requirements in the OMB Compliance Supplement and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. In the independent auditor’s opinion, the County complied, in all materials respects, with the compliance requirements that could have a direct and material effect on each of its major federal programs for FY23-24, as discussed below. An update is also provided for the FY22-23 Single Audit Finding 2023-001, which has since been corrected. More details are provided in the Single Audit Report attached.
Internal Control Over Financial Reporting - Government Auditing standards require the external auditor to obtain reasonable assurance that the general-purpose financial statements are free of material misstatement. The external auditor found no instances of material misstatement.
Internal Control Over Compliance - Government Auditing Standards and OMB Circular A-133 (which is applicable to federal programs) require the external auditor to report on both compliance with and internal controls over the major federal programs carried out by the County. The external auditor found no instances of noncompliance.
FY22-23 Single Audit Finding 2023-001: Current Status
In August 2022, The County approved the payment of Pandemic Service Relief Payments (PSRP) to eligible County employees across many departments. The PSRP payments were charged to the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF), ALN 21.027. Countywide correspondence was made to all department heads that the PSRP payments were made from the CSLFRF program.
During the external auditor’s testing of payroll transactions for the Head Start Cluster and Child Care and Development Fund (CCDF) Cluster, 11 payroll transactions did not timely identify payroll costs that were reimbursed from the CSLFRF program. The Employment and Human Services Department (EHSD) had duplicated PSRP payments from multiple federal sources. EHSD subsequently identified and corrected the duplicated federal expenditures by removing these costs from the Head Start and CCDF Clusters reported in the accompanying fiscal year 2022-23 Scheduled of Federal Expenditures in the amounts of $191,883 and $57,935 respectively.
Contra Costa County Employment and Human Services Department has taken corrective actions to ensure that this type of internal control deficiency is resolved. During the reporting period, the County and employers nationwide were dealing with staffing and workforce issues because of COVID. Since then, EHSD has hired a Chief Financial Officer and a Departmental Fiscal Officer who oversees the Community Services Bureau. EHSD has also hired new analysts and accountants. The structure of the Fiscal Unit is being revamped to increase lines of communication and collaboration through regular team meetings and meetings with managers and staff. These changes will continue to build internal controls and effective communication.
As of June 30, 2024: corrected.
FY24-25 Measure X Audit
On November 3, 2020, voters in Contra Costa County approved Measure X, a countywide, 20-year, half-cent sales tax. The ballot measure language stated the intent of Measure X as “to keep Contra Costa’s regional hospital open and staffed; fund community health centers, emergency response; support crucial safety-net services; invest in early childhood services; protect vulnerable populations; and for other essential county services.”
The County engaged Macias Gini and O’Connell LLP (MGO) to perform an independent audit of the FY24-25 Measure X expenditures and revenues, with oversight from the Measure X Community Fiscal Oversight Committee (MXCFOC). The audit period covers the most recent fiscal year from July 1, 2024 through June 30, 2025. The purpose of the audit was to confirm the accuracy of Measure X financial reporting and that allocations conformed to the stated intent of the ballot measure and the direction of the Board of Supervisors.
The audit was performed throughout the summer and early fall of 2025, culminating in the attached report prepared by the independent auditor. In MGO’s opinion, the County complied, in all material respects, with the applicable requirements governing the receipt and expenditure of Measure X funds for the year ended June 30, 2025.
Recommendation(s)/Next Step(s):
Receive attached reports regarding the Countywide FY23-24 Single Audit and Measure X Audit for FY24-25.
Fiscal Impact (if any):
Not applicable.