County auditors issue clean federal-aid opinion but find material weaknesses in local financial reporting

Humboldt County auditors reported an otherwise clean set of results for the county's fiscal 2022-23 financial statements but flagged two material weaknesses that county leaders said they are addressing.

The county's external auditor, CliftonLarsonAllen partner Brianne Weiss, reported an unmodified ("clean") opinion on the county's financial statements and on federal programs, but identified two repeat material weaknesses: incomplete financial information for a discretely presented component unit (the Fortuna-area fire protection district) and errors in receivable recording, including about $16 million in property tax receivables that auditors said should have been reported in the general fund rather than custodial funds.

Why it matters: A clean opinion on federal awards preserves the county's ability to receive federal dollars, while the material weaknesses point to process and accounting controls the county must strengthen before future audits. Auditors said the county has made progress but that additional work is needed to…