Internal auditor recommends 2026 focus on restricted funds and clearer fund-balance tracking

Julian, Grand County’s internal auditor, told the audit committee he used qualitative outreach to county leadership to identify higher-risk areas and proposed bundling audits that examine restricted funds (including TRT/TRCC and airport restricted funds) so the county can standardize procedures across different restriction types.

"I put together the proposal that I believe it's in the agenda, and it really covers the, TRT and TRCC," Julian said, describing the rationale for treating restricted funds as a common audit theme. Commissioners responded that fund balances have become complicated after legislative changes, and one commissioner pressed for clearer accounting so policy-driven spending limits are respected.

A commissioner urged a detailed breakdown of the reserve account: "I'd like to know what that fund balance is inside of our reserve for sure," he said, noting current practice leaves unclear how much in the reserve is attributable to different restrictions. Committee members and the internal auditor discussed accounting workarounds — using special-revenue subfunds, enhanced tracking in the financial system, or opening separate funds after legislative changes — and agreed the audit should examine whether the clerk’s office has sufficient controls and resources to support accurate fund-balance reporting.

The committee asked staff to prioritize restricted-funds work in the 2026 internal audit plan and to follow up on hiring or training needs in the clerk’s office.