Chippewa County auditor issues unmodified opinion; general fund balance rises to $25.4 million

Chippewa County officials on Tuesday heard a 2024 audit presentation from CliftonAllen that included an unmodified opinion on the county’s financial statements and no reportable internal-control deficiencies, followed by a second-quarter financial update that showed a stronger general fund balance and continued transfers from county sales-tax revenues.

April Anderson of CliftonAllen told the board auditors issued an unmodified opinion — the highest available — finding the county’s statements were prepared in accordance with generally accepted accounting principles. The firm’s single-audit review of federal and state programs similarly reported no compliance findings.

The county’s general fund balance rose by about $1.2 million year over year to roughly $25.4 million, Anderson said, with $15.0 million categorized as unassigned (available for operations) and $8.5 million as assigned for specific purposes such as facilities projects and unfunded benefit liabilities. The unassigned balance represented about 37.8% of annual expenditures, within commonly recommended ranges and above the county’s policy minimum.

Anderson highlighted other fund movements: sales-tax receipts totaled roughly $8.8 million in the year and the county maintained about $16.1 million in the county sales-tax fund after transfers, including about $3.4 million moved to the highway fund and $4.6 million to the general fund. The county reported no ARPA (American Rescue Plan Act) balance remaining after applying funds against eligible costs through 2024.

CliftonAllen also summarized road and capital funds: the highway fund’s net position rose about $3.3 million in 2024, helped by sales-tax transfers, and the county’s general-obligation debt rose to roughly $10.3 million after 2024 issuances while remaining well under statutory debt limits (utilization reported at about 2.1% of the county’s debt capacity).

At the second-quarter review, staff reported timing variances across revenue streams: some grants and state shared revenues arrive later in the year, library allocations and vendor contracts are paid early, and insurance funds had a high claim year that drove a $1.7 million operating loss in the self-funded health plan. Staff said transfers were used to offset those claims, including a $2.2 million transfer into the self-funded health insurance fund.

Why it matters: The unmodified audit opinion affirms the county’s financial reporting, and the fund balances and sales-tax transfers provide flexibility for capital projects and debt service while the county manages elevated health insurance costs.

What happens next: Staff will continue monitoring high-claim trends in the self‑funded health plan and bring fiscal recommendations in the 2026 budget cycle. Board members asked for continuing updates and for staff to manage the timing of revenue and expense recognition.