County auditors give Kandiyohi County a clean opinion; commissioners approve publishing financial statements

CliftonLarsonAllen presented Kandiyohi County’s audited financial statements for the year ended Dec. 31, 2024, to the county board on Oct. 21, 2025, and issued a “clean opinion,” the firm’s lead said. The board subsequently voted to publish the financial statements in the county’s two local newspapers.

The audit presentation emphasized that auditors encountered no disagreements with management and completed the audit earlier than in prior years. “We did issue a clean opinion on your financial statements,” auditor Doug Host told the board. Auditors noted two recurring internal-control items they are required to communicate: adjustments found during the audit (a clerical preparation/adjustment item) and limited segregation of duties in some decentralized functions.

Auditors also reported the results of compliance testing of federal programs. The county reported about $9,500,000 in federal grant expenditures for the year, and auditors said they had to communicate findings on case-file review practices for medical assistance and foster-care programs and on documentation of suspension-and-debarment checks for contracts funded with ARPA money. Auditors recommended routine supervisory reviews of case files and better documentation that required vendor checks were completed.

The presentation included financial trends: combined governmental funds held about 8.93 months of expenditures in fund balance in 2024, above common benchmarks; the Road and Bridge Fund had about 9.2 months of expenditures in fund balance; and the General Fund held about 7.9 months. The auditors pointed to a roughly $3 million increase in public-safety expenditures driven in large part by increased inmate boarding costs and noted that implementation of GASB 101 changed how some compensated-absence liabilities appear on financial statements.

After the presentation Chief Financial Officer Karen Anderson asked the board for formal approval to place the audited financial statements in the West Central Tribune and Lake Superior Review. A motion was made and seconded; the board voted to approve the publishing request and authorized signature and processing for print.

Board members and auditors said county finances are in a stable position, and auditors encouraged continuing multi-year budget planning and periodic cost-benefit analysis of strong segregation of duties if the county considers adding staff to change internal-control structures.

The county’s auditors and finance staff said they would provide the county a full printed report and noted staff work in preparing the audit had reduced the number of required adjustments over several years.