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Independent auditors give Scott County an unmodified opinion, cite five findings including three material weaknesses
Summary
The county received an unmodified independent auditor’s opinion for the fiscal year ending June 30, 2024, but auditors identified five findings — three material weaknesses — including untimely bank reconciliations and delayed federal reimbursement submissions from the school board.
Scott County’s independent auditors reported an unmodified opinion on the county’s 2024 financial statements but listed five findings and recommended corrective steps in a presentation to the Board of Supervisors.
Scott Wickham, partner in charge of the Scott County audit, told the board “the county has again received an unmodified opinion,” meaning the auditors found the financial statements suitable for public use.
Wickham reported five findings overall and described three as material weaknesses. He said one material weakness arose because “the financial statements presented for audit did not contain all necessary adjustments” — a common issue when accruals or receivables are not recorded in time. Wickham said the county had hired a consultant to update bank reconciliations in the treasurer’s office and that reconciliations were still catching up, which delayed completion of the audit.
He identified a second material weakness tied to the school board’s timing: the school division submitted federal grant reimbursement requests late, sometimes months after the costs were incurred. The auditor described best practice as monthly reimbursement submissions so accruals appear in the expected accounting period.
A third material weakness involved Head Start budget reporting: Wickham said the Head Start budget was not included in the county’s appropriation records and recommended that the budget be incorporated in future appropriations.
The auditors also flagged errors in school nutrition reimbursement requests related to meal counts and recommended stronger internal checks and balances. Wickham summarized broader financial trends, noting five‑year growth in net position and that the county’s unassigned general fund balance equaled about 12.3% of expenditures — below the Government Finance Officers Association’s recommended minimum of roughly 16.7% (two months of expenditures).
Wickham told the board the audit went “pretty well” given the issues flagged and urged prompt corrective action on bank reconciliations and the other findings so future audits require fewer adjustments.
