Clackamas County Audit Committee - April 22, 2026

Agenda

Committee:   

• Craig Roberts, Clackamas County Chair
• Martha Scrader, Clackamas County Commissioner
• Billy Williams, County Counsel
• Scott Johnson, Public Member
• Josh Kam, Public Member
• Michael Osborne, Public Member
• Dan Johnson, Director of Department of Transportation and Development
• Wendy Rader, Public Member, County Budget Committee Liaison

Committee Staff:              

• Gary Schmidt, County Administrator 
• Elizabeth Comfort Director, Finance 
• Ryan Rice, Interim Finance Director
• Sue Unger, Accounting Manager
• Bouavieng Bounnam, Grant Manager            

1. Introductions & Roll Call
2. Approval of August 13, 2025 meeting minutes
3. FY 2025/2026 Audit Finals Presentation (Baker Tilly)
4. Open for Other Items
5. Adjourn

The Audi Committee meets several times a year, with independent auditors, to assist in planning and reviewing results of the audits; as well as recommending a course of action to staff and/or the Board of County Commissioners. The Committee also provides review and independent oversight of the County's financial reporting processes, internal controls and independent auditors. 1Recordings will be saved for one year from the meeting date and will be provided upon request.

Minutes

Committee Present:

• Paul Savas, Clackamas County Commissioner
• Billy Williams, Interim Legal Counsel
• Christina McMahan, Director of Juvenile Services
• Dan Johnson, Director of Department of Transportation and Development
• Scott Johnson, Public Member
• Josh Kam, Public Member
• Michael Osborne, Public Member
• Wendy Rader, Public Member, County Budget Committee Liaison

Committee Absent:

• Craig Roberts, Clackamas County Chair

Committee Staff:

• Gary Schmidt, County Administrator
• Elizabeth Comfort, Finance Director
• Ethel Gallares, Deputy Finance Director
• Sue Unger, Accounting Manager
• Additional Attendees:
• Ashley Osten, Baker Tilly
• Kevin Mullerleile, Baker Tilly
• Meeting began at approximately 11:33AM

Introductions 
Welcome by Commissioner Savas. Attendees introduced themselves.

Approval of the Previous Meeting Minutes

• April 1, 2025 (included in meeting invitation & sent out with the agenda)

Motion was made to approve April 1, 2025 meeting minutes. Moved to approve minutes by Mr. Scott Johnson, seconded by Ms. Rader. All attending members in favor of approval and the motion passed.

FY 2025/2026 Audit Planning – Baker Tilly 
Ms. Comfort handed the meeting presentation over to Ms. Osten. Please see the presentation materials as referenced in these minutes.

Ms. Osten and Mr. Mullerleile presented the kickoff for the fiscal year 2024-2025 audit, which will be conducted by Baker Tilly, with the audit report issuance scheduled for January 31, 2026. They introduced their team, including Amanda Moore as the concurring reviewer and Ben Tellin as the IT consulting manager. Ms. Osten outlined their responsibilities under professional standards and discussed the plan, scope, and timing of the audit, emphasizing the importance

The Audit Committee meets a minimum of two times per year, with independent auditors, to assist in planning and reviewing results of the audits; as well as recommending a course of action to staff and/or the Board of County Commissioners. The Committee also provides review and independent oversight of the County's financial reporting processes, internal controls, and independent auditors. of communication regarding significant findings or adjustments. Particularly GASB 87 and 96, which will require more detailed disclosure of capital assets by 2026.

Clackamas County Audit Overview
Ms. Osten and Mr. Mullerleile presented an overview of the audit process for Clackamas County's financial statements. They explained the audit's scope, including the assessment of financial statements, internal controls, and compliance, and compliance with federal funding requirements. The team discussed non-attest services, such as assisting with the drafting of financial statements. They outlined the audit process, which includes internal controls evaluation, analytical procedures, and substantive testing. Mr. Mullerleile emphasized the importance of considering materiality levels for different financial statement components and highlighted key audit areas such as revenue recognition, cash and investments, capital assets, and compliance with federal and state standards.

FY26 Technology Audit Progress and Timeline
Mr. Mullerleile discussed the timeline and progress of the FY26 Technology audit, noting that testing is winding down, with meetings scheduled to debrief with the county and discuss recommendations. The audit began in April, with risk assessment procedures conducted in July.
Ms. Comfort mentioned that the IT audit was nearing completion, with a final meeting scheduled for the following day to address issues of conflict of interest and separation of duties between the Finance and IT departments.

Component unit audits are set to start in late August, concluding by end of October. The County's ACFR audit report is expected by the end of January 2026; with the single audit due by March 31, 2026. Ms. Comfort clarified that the first four component units' and the Development Agency audits are prepared by the Clackamas Finance team, while NCPRD, HACC and WES, handle their own preparations, with Clackamas Finance overseeing the audits.

GASB Standards and IT Audit
Mr. Mullerleile discussed two new accounting standards: GASB 101 on compensated absences, which requires recording both expected vacation and sick pay payouts, as well as future time off that cannot be paid out due to caps; and GASB 102 on risk disclosures, which involves identifying concentrations or constraints that could significantly impact the County's finances.

GASB Standard for Paid Leave Liabilities
The meeting focused on discussing the new GASB standard for recording liabilities related to vacation and sick pay payouts, as well as other paid leaves. Ms. Osten explained that the County needs to evaluate all paid leaves annually to determine if they are material enough for consideration under the standard, though she suspected they might not be material. Mr. Mullerleile clarified that the County does not need to set aside specific funds for these liabilities, as they are recorded as a liability. Ms. Comfort mentioned that the county is still working on calculating these numbers for June 30, 2025, as it is the first year they are doing so. The group also discussed the concept of concentrations and constraints under the new standard, with Mr. Mullerleile providing an example of how layoffs could impact service levels and thus be considered a concentration.

Mr. Savas opened the meeting for questions. There were none and the meeting was adjourned.

Meeting Adjourned at 12:06PM

Recording will be provided upon request.