Rice County accepts 2024 audit; auditors issue clean opinion as reserves hold at five months

Rice County commissioners on June 10 accepted the county—s audited 2024 financial statements and annual comprehensive financial report, hearing a presentation from the independent audit team and county finance staff.

CliftonLarsonAllen auditor Doug Holst told the board the firm "issued a clean opinion again on your financial statements," the firm—s highest level of assurance. Holst said auditors found no disagreements with management and no difficulties that prevented completion of their work. He described two routine adjustments and recommended continued attention to internal controls in some smaller departments.

"We will be getting them sent out to you," Finance staff member Paula said after the presentation, referring to the final bound report copies and to the annual comprehensive financial report the county will submit to the Government Finance Officers Association.

Why it matters: the audit summarizes the county—s financial position for the year and confirms whether the financial statements fairly present county finances in accordance with accounting standards. Commissioners used the report to review reserves, major one-time funding flows and accounting changes that affected liabilities.

Key takeaways from the audit presentation

- Reserves: Rice County—s unrestricted fund balance remained at about five months of operating expenditures, Holst said, a level that matches commonly used guidance from the state auditor and national finance organizations. Holst noted the county—s reserves rose in 2021—6 following one-time federal funding and have since been drawn down on eligible projects.

- Revenues and expenditures: Overall governmental revenues rose 7% in 2024, led by a jump in intergovernmental receipts tied mainly to federal grants for road and bridge work. Property tax revenues rose about 2.3% after the levy increase. Total governmental expenditures increased 1.3%; capital outlay fell about $4.7 million compared with 2023 as major construction projects slowed.

- Proprietary funds: The county—s proprietary (enterprise) funds had net positions that declined slightly from 9.1 to about 7.7 months of reserves, driven by timing and market factors; combined enterprise expenses were essentially flat year over year.

- Accounting changes and liabilities: A recent Governmental Accounting Standards Board (GASB) standard change required new valuation of compensated absences (unused vacation, comp time, PTO and sick leave). Holst said the change added roughly $1.2 million to the county—s recorded liability; the increase is consistent with what auditors see in other local governments and reflects a new method for estimating the portion of leave likely to be paid out at separation.

Board action and next steps

The board voted to accept the 2024 financial statements and authorize submission of the annual comprehensive financial report (ACFR) for external awards and publication. Holst said the county will submit the ACFR to the GFOA by June 30 and complete required filings. Paula said final printed copies and electronic versions will be provided to commissioners and to the public as part of the closing process.

Looking ahead: commissioners and staff discussed the 2026 budget planning cycle and the county—s approach to one-time fund use. Holst and staff advised that using fund balance for one-time projects is appropriate, but cautioned that recurring expenditures funded from reserves can create multi-year budget pressure. The board will review debt schedules and planned capital spending as part of the budget work.

Ending: Commissioners thanked the audit team and county finance staff for their work; the board approved the audit and adjourned.