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Audit: Cleveland County posts healthy cash but finds fixed-asset error and compliance items for federal programs
Summary
An external audit covering the fiscal year ended June 30, 2024, found no uncorrected material misstatements, flagged a correction to fixed-asset records, and disclosed compliance findings related to Medicaid and food-stamp programs; fund-balance metrics and P-card controls were also discussed.
The county’s independent auditor presented the fiscal-year 2024 financial audit to the Cleveland County Board of Commissioners, reporting generally clean financial statements while noting a correction to prior fixed-asset records and several compliance items affecting federal benefit programs.
The auditor told the board the financial statements for the year ending June 30, 2024, were audited in accordance with government auditing standards and the audit engagement letter dated April 24, 2024. The auditor said management’s financial-statement disclosures were “neutral, consistent and clear” and reported no disagreements with management or uncorrected material misstatements.
Key findings and metrics
- Correction of error: The audit identified an adjustment after the county changed fixed-asset software. That correction reduced governmental activities net position by $156,000 and reduced the solid-waste fund (a business-type activity) by $208,000, the auditor reported. - Compliance findings: Several findings (numbered 2024-2 through 2024-6 in the audit package) related to Medicaid and food-stamp administration and appear in the compliance section of the full report, the auditor said. - P-card risk and controls: Auditors noted a significant number of purchasing cards assigned to employees and recommended the county weigh convenience against increased misappropriation risk; finance staff currently spend substantial time reconciling transactions monthly. - GASB pronouncements: The county adopted GASB Statement 100 (Accounting Changes and Error Corrections) for FY2024 and was advised to prepare for GASB Statement 101 on compensated absences in FY2025.
Selected financial metrics the auditor highlighted:
- Total fund balance: $58,500,000. - Unavailable fund balance: $10,700,000. - Restricted/committed/assigned balance: $27,600,000. - General fund expenditures: $157,400,000. - Unassigned fund balance: $30,300,000 (19.27% of expenditures). - Fund balance available as a percentage of expenditures: 30.36% (down from 2023 and below a group weighted average presented by the auditor). - Cash: general fund $58,900,000; other governmental funds $129,000,000; solid waste $8,900,000. - Total property valuation: $11,300,000,000; levy amount $77,800,000; property tax rate 0.6875; collection rate 98.28%. - Largest debt category: governmental installment contracts of $33,700,000.
The auditor concluded the presentation and invited questions. Commissioners asked for clarification about the committed balances (Exhibit C and page 37 of the full report), and the auditor explained that a large committed balance related to public-safety projects — including the county jail/correctional center — accounted for much of the year-over-year change in committed fund balance.
No formal board action on the audit report was recorded in the meeting minutes during this session.
