Management Letter 2025.pdf
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- Attached to
- Boulder County Financial Auditing Services
- Solicitation number
- RFP-304-26
- Issued by
- Boulder County, Colorado
About this file
This is a Management Letter from CliftonLarsonAllen LLP (CLA), an independent audit firm, to Boulder County, Colorado, documenting findings from the County's 2025 financial audit. The letter addresses the County's internal control deficiencies identified during the audit of governmental activities, business-type activities, component units, and major funds as of December 31, 2025. The primary finding concerns the Treasurer's Office bank and investment reconciliations, which lack documented evidence of independent review and approval by personnel separate from the preparer. CLA recommends implementing a formal review and approval process evidenced by dated signatures, initials, electronic approvals, or approved electronic workflows on all reconciliations. The audit report is dated June 26, 2026, and CLA indicates willingness to discuss these findings further and assist with implementation of recommendations during future audit engagements.
The management letter does not address pricing, set asides, or funding sources, as it is an internal audit communication rather than a procurement document. However, the findings are relevant to the related Boulder County Financial Auditing Services contract opportunity (2027-2031), which seeks a qualified CPA firm to conduct annual audits and provide consultation to strengthen the County's financial reporting processes and ensure compliance with Generally Accepted Auditing Standards, Government Auditing Standards, and the Federal Single Audit Act. The identified control deficiency regarding reconciliation review procedures represents an area where the selected audit firm will likely provide recommendations and monitoring during the five-year contract term covering fiscal years 2026 through 2030.
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Text version
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
CliftonLarsonAllen LLP CLAconnect.com
Management Boulder County, Colorado
In planning and performing our audit of 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 Boulder County, Colorado (the County) as of and for the year ended December 31, 2025, in accordance with auditing standards generally accepted in the United States of America, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control.
However, during our audit we became aware of deficiencies in internal control other than significant deficiencies and material weaknesses and other matters that are opportunities to strengthen your internal control and improve the efficiency of your operations. Our comments and suggestions regarding those matters are summarized below. This letter does not affect our report on the financial statements dated June 26, 2026.
Treasurer Reconciliations We noted that bank and investment reconciliations prepared by the Treasurer’s Office did not include evidence of review and approval by an individual independent of the preparer. We recommend that the Treasurer’s Office implement a formal review and approval process for all bank and investment reconciliations. Such review and approval should be performed by someone independent of the preparer and evidenced through a dated signature, initials, electronic approval, or approved electronic workflow on each reconciliation. Without timely independent review, the County has an increased risk that errors, omissions, or unauthorized activity in cash and investment accounts may not be detected and corrected in a timely manner.
We will review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions with various entity personnel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.
This communication is intended solely for the information and use of management, the Board of County Commissioners, and others within the entity, and is not intended to be, and should not be, used by anyone other than these specified parties.
CliftonLarsonAllen LLP
Denver, Colorado June 26, 2026
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