Elko County approves 2024 audit, submits tentative 2026 budget to state

The Elko County Commission voted to approve the county’s annual comprehensive financial report for the year ended June 30, 2024, and the county’s single‑audit of federal funds, then authorized submission of the tentative fiscal 2026 base budget to the Nevada Department of Taxation. The actions were taken during the commission’s public meeting after an auditors’ presentation.

Auditors told the commission the county’s financial statements received an unmodified — or “clean” — opinion. "Elko County as of the year ended 06/30/2024 have what we call an unmodified opinion," said Terry Gage, partner with Ida Bailey LLP, during her presentation. She said the county’s government‑wide net position rose to about $148 million, an increase of roughly $17.5 million from the prior year, and that cash and investments totaled about $117 million.

Why it matters: the audit gives elected officials and the public an independent assessment of the county’s finances ahead of the budget cycle. The meeting also set the tentative budget that starts the county’s statutory filing and public‑hearing process with the state.

Details from the audit and commissioners’ discussion

Gage reviewed several factors the commission will face in the coming budget year. She said roughly $13.7 million of the county’s cash is restricted (the auditor identified the LATCF funds in restricted cash), and that all American Rescue Plan Act (ARPA) funds had been expended by June 30, 2024. She described two large comptroller estimates in the statements: net pension (PERS) liability of about $43.8 million and an OPEB (other post‑employment benefits) liability of about $7.3 million.

Gage also flagged upcoming pension‑related cost pressure, noting the county’s employer rate for police and fire would rise to about 58.75% from 50% and that the regular member rate would increase to about 38.5% from about 33.5% in the next fiscal year.

The audit listed several compliance findings and year‑end adjustments the auditors said are common in large audits. Among the items cited: - A deficit cash balance of about $107,000 in the Local Emergency Planning Commission fund that was not corrected with an interfund loan before year‑end. - A deficit cash balance of about $75,000 in the ambulance fund, likewise lacking an approved interfund loan at year‑end. - Journal entries and year‑end adjustments related to receivables, payables and capital assets that required correction in the audit process. - Two property tax abatements (out of a sample of 40) that were allocated across funds incorrectly in the new tax software; the total abatement amount was correct but the distribution among funds was not. - Two federal awards omitted from the initial schedule of expenditures of federal awards (ARPA: $883,000; a U.S. Forest Service grant: $338,000) and reporting mismatches in ARPA reports submitted to the federal government.

"You did spend all your ARPA funds, you spent all the ARPA funds correctly. It's just, they weren't reported on the right line item on the report that goes to the feds," Gage said.

Commissioners and staff discussed several fund balances Gage highlighted: the general fund ended the year with about $18.7 million (about 42% of expenses), the county capital projects fund ended near $15.5 million, the infrastructure tax fund about $7.9 million, and a new capital facilities project fund about $8.7 million. The ambulance fund showed a $371,000 ending balance that included a $515,000 ARPA transfer the auditor said should be watched in future budgets.

Commission action and next steps

A commissioner moved to approve the annual comprehensive financial report and the independent single audit; the motion was seconded and carried by voice vote. The county manager explained a separate corrective action plan will be submitted to the state Department of Taxation for each finding and presented for board approval at a subsequent meeting, per the department’s request.

Commissioners then moved and approved a separate agenda item directing county staff to submit the tentative fiscal 2026 base budget to the Department of Taxation by the April 15 statutory deadline. Commissioners noted the county’s healthy ending fund balance provides short‑term cushion but flagged rising pension costs and the end of ARPA funding as budgetary pressures for the next fiscal year.

Ending

Auditors said the audit showed improvement from prior years even as they reported the normal year‑end adjustments and a small number of compliance findings. Commissioners directed staff to prepare corrective actions for formal board approval and to continue work on the fiscal 2026 budget now in the state filing and public‑hearing process.