External auditors give Adams County an unmodified 2024 opinion; single-audit notes state reimbursement issue in foster care

Adams County’s external auditors presented their 2024 results at a study session, issuing an unmodified audit opinion on the county’s financial statements while identifying several areas for follow-up and improvement.

John Paul LaChavalier of CliftonLarsonAllen told commissioners the audit produced a clean opinion — formally called an “unmodified” opinion — meaning the firm believes the financial statements are materially correct. He noted the audit also produced a single-audit review of federal-award programs, as the county received about $142 million in federal awards during 2024.

Why it matters: An unmodified opinion is the standard expected for government financial statements and signals that the county’s financial reporting is reliable. The audit also identified items that require management attention, which the county must address to preserve financial controls and federal compliance.

Key audit findings and follow-up • Treasurer cash-reconciliation finding reduced in severity: Auditors said a persistent issue in the treasurer’s cash reconciliations (an open item since 2021) improved during 2024 and was downgraded from a “material weakness” to a “significant deficiency.” Auditors and county staff reported they identified remaining items and expect resolution in the 2025 audit cycle. • Payroll system reconciling item: A legacy payroll-system conversion produced a $1.3 million accrued-payroll balance that was still outstanding at year-end; county staff completed research after the audit and expect to clear it in 2025. Auditors classified the item in the management-letter level and described the difference as an “uncorrected misstatement” for 2024 reporting purposes. County staff said the issue did not affect payments to employees. • Single-audit “other matter” in foster care eligibility/reimbursement: Reviewers tested a sample of 40 foster-care cases and found one placement that staff had identified as not eligible for Title IV-E (a federal foster-care reimbursement stream), but the state’s payment system nonetheless reimbursed the county with Title IV-E funds. The auditor reported $236,000 associated with that set of reimbursements; auditors described the root cause as a state-system processing or coding issue, not an eligibility error by county staff. County staff said they documented the ineligibility, furnished evidence to the state and are seeking a state resolution; the county does not expect to be out of pocket while the state corrects its reimbursement coding.

Other notes from the auditor • Financial results: The county reported increases in equity and property tax revenues in 2024, and it recorded nearly $35 million of state and local fiscal recovery fund (ARPA) revenue in the year’s financials. • Audit types: The presenter explained the distinction between the financial-statement audit (the clean opinion) and the single audit for federal awards (more detailed compliance procedures).

Next steps and board reaction County staff said they have been addressing the treasurer reconciliation items and have identified remaining work to complete before the 2025 audit. Commissioners asked for accessible copies of the audit documents; staff said the audit is included in the county’s Annual Comprehensive Financial Report (ACFR) and that the office would make locating the audit report easier on the website.

Ending No formal action was required; the audit report was accepted administratively and will be posted and followed by county staff as corrective action items are completed.