Custer County auditors present draft financial report; no major federal compliance findings

At a workshop of the Custer County Board of Commissioners, auditor Sam Donardo presented the county's draft annual financial report and accompanying single-audit materials, telling commissioners the independent opinion on the financial statements is unmodified and that the audit found no questioned costs for the federal programs tested.

The draft report covers full-accrual government-wide statements, government fund statements, notes, and required supplementary information. Donardo said the county's consolidated financial statements "fairly present financial position and results of operations as they apply to governmental entities." He also noted the county's federal expenditures exceeded the single-audit threshold (historically $750,000), so the county underwent compliance testing of major programs; Donardo reported no compliance findings that rose to questioned costs.

Why it matters: an unmodified auditor's opinion signals that an independent auditor judged the financial statements to be presented fairly under applicable accounting standards, and the absence of questioned costs in the single-audit testing reduces the risk of federal grant disallowances. Commissioners and staff spent the bulk of the discussion on management-letter recommendations and outstanding internal-control and reporting items that the auditor said remain to be…