Cyril & Hart auditors told the Jefferson County Board of Commissioners on Aug. 18 that they issued an unqualified (clean) opinion on the county's financial statements but identified a reconciling item between the county treasurer's and the county clerk's records that staff must reconcile. The auditors also reported a single-audit of federal funds after ARPA expenditures exceeded the federal major-program threshold.

The audit presentation opened with Dana, an auditor with Cyril & Hart & Associates, saying, "it's a good opinion on your financial statements." Dana walked commissioners through the financial statements, noting components such as cash and investments, capital assets, the net pension liability for the Idaho Public Employee Retirement System, and fund-level budget-to-actual reports.

The auditors summarized one finding related to reconciling tax-roll and clerk records. Dana said the discrepancy arose over time when items such as cancellations or other entries were recorded on one side but not the other and described it as a "reconciling type thing." County staff said the difference will be addressed by improved month-to-month reconciliation between Christine, the county treasurer, and Colleen, the county clerk.

On federal funds, Dana told the board that the county had to undergo a single-audit because it expended more than $750,000 in federal awards, and that the county's ARPA grant was the major program tested. "It was a good opinion on your federal money," Dana said, and he noted the schedule of expenditures of federal awards that lists the Department of the Treasury as the ARPA source.

Commissioners and staff also discussed a recent land purchase for the solid-waste department. Commissioner (surname not specified) asked whether the purchase occurred after the Sept. 30 fiscal-year cutoff; Dana confirmed, and staff said the cash outflow will post to the next fiscal year: "it'll show up in '25," one county official said. County staff said payments remain scheduled and that the former owner carried part of the sale with no interest under the sale agreement.

County staff and auditors reviewed budgetary results. Dana pointed to the budget-to-actual schedules and told the board the county ran under budget in several major funds. Commissioners noted that the '25 budget is balanced without relying on carryforward funds and that the board increased employee wages by more than $400,000 in the current budget cycle.

Direction and next steps recorded during the meeting: staff will reconcile the treasurer and clerk ledgers monthly, the deputy clerk will work with the treasurer to resolve historical differences, and the county will place a representation letter related to the audit on next week's agenda for formal approval. No formal audit-related action was taken during the Aug. 18 meeting.

The auditors also provided management graphs showing fund cash trends and pension schedules and reminded the board that last year's audit findings had been corrected. Dana closed by advising commissioners that the county should continue monthly reconciliations and maintain internal controls to prevent similar reconciling items in future audits.

The auditors said they will support county staff in submitting federal-aid reporting forms; staff said they will submit the required single-audit reporting within the next 30 days and that the county expects federal ARPA testing will be required one more year because next year expenditures are expected to fall below the $750,000 threshold.