Beltrami County auditor issues clean opinion; reserves increase across major funds

CliftonLarsonAllen delivered Beltrami County—s 2024 audited financial statements to the Board of Commissioners, reporting a clean audit opinion and improved reserves in the county—s main funds.

The audit principal, Doug Holst, told the board the audit for the year ended Dec. 31, 2024, was completed earlier than the prior year and that the firm issued "a clean opinion, the best opinion we can give." He said the county—s combined reserves in the general fund, road and bridge, and health and human services rose from about 4.78 months to about 6.6 months.

The audit found no material weaknesses in internal control and no difficulties in performing the audit. Holst noted a small number of audit adjustments and some long-standing segregation-of-duties limitations in certain departments. He also flagged timing issues with federal grant reimbursements for road projects: work performed in October and November was not submitted for reimbursement until June, creating a several-month lag.

Why it matters: the audit establishes the county—s baseline numbers as officials move into budget season and signals where administrative improvements are recommended.

Key findings and figures - Holst said the county had about $37 million in unspent bond proceeds earning interest at year-end. - General fund reserves rose to roughly 11.5 months; the county—s general fund balance increased about $6.3 million. - Road and Bridge fund balance increased about $5.7 million; Holst called that fund a "roller coaster" because reimbursements and project timing cause large year-to-year swings. - Health and Human Services fund balance fell to about $638,000, roughly just under half a month of reserves. - Overall governmental fund revenues exceeded expenditures by about $9 million for the year; overall expenditures decreased about $4.9 million versus the prior year.

Federal and state compliance Holst said Beltrami County underwent a single-audit because federal expenditures exceeded $750,000. Single-audit testing produced no material weaknesses. The audit did identify two items the firm is required to communicate: one case where a redetermination for Medical Assistance eligibility was missed (1 out of 60 files tested), and that the county could increase the frequency of case-file reviews for MA, TANF and SNAP to reduce risk. Holst said, "We tested 60 and only found 1 where it kinda slipped through the cracks." He emphasized the county—s remediation of prior findings.

Holst also noted one state-compliance item repeated from prior years concerning publication of claims in the newspaper.

Recommendations and next steps - Shorten the lag between incurring federally funded project expenditures and requesting reimbursement. - Increase the number of case-file reviews for benefit programs to reduce federal compliance risk.

Speakers quoted in this report spoke during the audit presentation. The board did not take a formal vote on audit findings at the work session; the presentation provided information for upcoming budget deliberations.

Ending note: Holst called the county—s audited position "stable" and said the county staff—s work enabled an earlier audit completion, which is useful as budget work begins.