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Independent auditor gives San Juan County a clean opinion on 2024 finances; urges earlier component‑unit filings
Summary
Larson & Company presented the county’s fiscal‑year 2024 audit and issued an unmodified (clean) opinion on the financial statements and federal single audit; auditors reported no current‑year findings, noted new lease accounting rules (right‑to‑use assets), and recommended component units submit reports earlier to speed consolidation.
An independent auditor told San Juan County commissioners on Sept. 2 that Larson & Company had issued an unmodified opinion — a “clean” opinion — on the county’s fiscal‑year 2024 financial statements and its federal single audit. John Hatterley of Larson & Company reviewed the audit and highlighted several items the commission should note.
Why it matters: an unmodified opinion signals that the auditor found the county’s financial statements fairly presented in accordance with accounting standards; the single audit also produced no findings for major federal programs, including the American Rescue Plan Act (ARPA).
Hatterley said the financial statements received “an unmodified opinion or an unqualified opinion. That's a clean opinion in our world.” He noted the audit excluded certain component units that were audited by other firms (San Juan Mental Health and the substance‑abuse districts) and that those reports compose a small share of consolidated net position. The auditor also reported no material weaknesses, no significant deficiencies and no state‑compliance findings in the current year; a prior year finding about quarterly reports to the commission appeared to be corrected.
Hatterley explained one technical change this year: new lease accounting standards caused the addition of a “right‑to‑use assets” category for some leased items. The change required close review to determine whether transactions were true leases or bank loans labeled as leases.
Budgetary posture and reserves: Hatterley pointed commissioners to the governmental fund statements and noted the general fund had about $5,000,000 of unrestricted fund balance as of the Dec. 31 year end. He also noted the county’s tax‑stability trust balance (about $7,500,000) and a restricted roads fund balance of roughly $18,000,000. The auditor recommended building general‑fund reserves to cover operating needs during months before property tax collections arrive, and urged component units to file their audits earlier so county staff and auditors can consolidate reports in a timely way.
On federal compliance, the auditor said the county’s major program this year was ARPA and that the county qualified as a low‑risk auditee (which reduces required testing). Hatterley encouraged continuing timely filings and said the county’s clean results are favorable both for operations and for audit fee stability.
No formal action was required from the commission in response to the presentation; commissioners thanked the audit team and staff for their work.
