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External auditors report no material weaknesses but flag eligibility and compliance items in 2024 county audit
Summary
Independent auditors presented Todd County's 2024 audit at the May 20 meeting: overall finances were strong, but auditors noted two instances of noncompliance, a significant deficiency in eligibility testing under the Medical Assistance program, and timing issues in public-works revenue recognition.
TODD COUNTY, Minn. — An external audit presentation to the Todd County Board of Commissioners on May 20 summarized the county's 2024 financial and compliance results and flagged several recommendations for ongoing work.
Lynn Nickson, manager with the auditing firm that conducted the county's fiscal 2024 audit, told commissioners the auditors found no material weaknesses in internal controls but identified areas for improvement and two instances of statutory noncompliance carried forward from prior work.
“The county feels that the resources needed to resolve them kind of exceeds the benefit,” Nickson said in explaining two technical noncompliance items that auditors carried forward: handling of individual ditch cash deficits, where some individual ditch accounts carry a negative balance while the overall ditch fund is positive; and detailed vendor disclosure when publishing credit-card disbursements under state reporting requirements.
Auditors also ran the single-audit procedures for federal spending and said the county had roughly $6 million in federal expenditures in 2024. Testing of medical-assistance eligibility found a significant deficiency: auditors sampled 60 cases and said that having even one error in that sample size pushes the testing result into the significant-deficiency category. Nickson said that finding was significant in audit terms but not a material weakness.
Financial highlights presented included a general fund balance that exceeded the Office of the State Auditor recommended minimum (reported as about 14.7 months of expenditures in the general fund). Public-works expenditures rose by $2.5 million in 2024 for construction activity; auditors noted about $2.4 million of “unavailable revenue” on the public-works fund that would be recognized after year-end when receipts arrive. Solid-waste financial position rose markedly, the auditors said, reflecting a $3 million capital grant and a $1 million transfer that increased net position but was largely investment in capital assets rather than spendable fund balance.
Nickson told commissioners the audit also included work on recent accounting-standard changes for compensated absences; the county adjusted estimates for paid time off and other liabilities. She closed by noting the county's governmental funds remain well above recommended reserves and that the auditors had no unusual concerns beyond the issues discussed.
What the board asked staff to do: Commissioners thanked audit staff and asked department heads and county staff to work on the detailed compliance recommendations and to follow up on the single-audit eligibility finding with health and human services staff.
The audit letter and required communications will be made part of the county's permanent record.
