Wright County board accepts clean 2024 audit but auditor notes material adjustment items

Wright County commissioners on Tuesday accepted CliftonLarsonAllen’s 2024 audit, which included an unmodified (clean) opinion but flagged recurring audit adjustments and one single-audit documentation deficiency. CliftonLarsonAllen signing director Kristen Houle told the board, “we did issue an unmodified or clean opinion.” The audit team also reported a material internal control deficiency caused by a pattern of audit adjustments and a single significant deficiency in the federal single audit related to documentation of suspension/debarment checks for coronavirus state and local fiscal recovery funds (CSLFRF). The audit showed the county spent about $15,200,000 in federal funds in 2024; auditors said they tested at least 40% of that total and reviewed two major programs (the CSLFRF program and child support). Auditors found that staff had verified that vendors were not suspended or debarred but failed to retain the date of the checks; auditors said the county has since started retaining that documentation. Eric, the audit manager, summarized financial trends: the county’s combined funds recorded a $5.2 million increase in revenues—driven mainly by higher tax levies and increased intergovernmental revenue—while expenditures rose $23.5 million largely because of major highway projects and the Maple Lake shop. He noted a reporting classification change moved roughly $30 million of road project costs from highways-and-streets operating buckets into capital outlay for proper presentation. Auditors also reviewed Minnesota legal compliance checklists required by the state auditor’s office and reported no findings there. The auditors recommended continuing work on internal controls to limit the need for year-end audit adjustments. Commissioner Holland moved to accept the audit report; the motion passed unanimously. The county’s finance staff and CliftonLarsonAllen encouraged continued attention to controls that affect cash and investment reporting, deferred inflows, receivables and interfund balances; GASB Statement 101 changes to compensated absences were implemented for 2024 reporting but did not produce material change. The commissioners recorded their acceptance of the audit and instructed staff to work on the control items identified in the governance letter.