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External audit finds no material weaknesses but urges improved monthly reconciliations and accounting capacity
Summary
An external auditor told the Huerfano County Board that the 12/31/2023 audit received a clean opinion but identified material weaknesses in cash-accounting reconciliation and book-closing timeliness; the auditor recommended outside accounting services and offered to present at a work study session.
HUE RFANO COUNTY — An external audit of Huerfano County’s 2023 financial statements received a clean opinion, but the auditors identified two areas needing improvement and recommended additional accounting capacity.
Tim, the external auditor, said the audit team found no significant deficiencies or material weaknesses in internal controls broadly, but disclosed "a couple of material weaknesses" in the county’s financial systems. The issues cited were: lack of monthly reconciliation between the Health and Human Services (DHS) cash records and the county treasurer’s office, and ineffective processes for timely and accurate year-end book-closing and preparation of annual financial statements.
Tim told the board that the county should add a monthly reconciliation step for DHS cash ledger records and consider hiring or contracting accounting services to provide routine reconciliations and day-to-day accounting support. He said such services could reduce gaps caused by staff turnover. "I think that would be a very good process to fulfill," Tim said, adding that outside firms can provide continuity when local offices experience turnover.
County finance staff, represented by Carl, acknowledged staffing and continuity challenges in DHS and other financial offices and said the county had issued a request for accounting services. Carl and Tim suggested the auditor could present a primer on reading government financial statements in a work study session; Tim offered to prepare a 30–60 minute presentation to explain fund accounting, balance sheets and how those statements relate to operations.
The auditors noted the county ultimately received a clean opinion on generally accepted accounting principles, although the auditor’s report was issued late (the report was finalized in late February 2024). The audit team recommended the county strengthen internal controls around cash reconciliation and improve processes to close the books on time to meet state reporting expectations (the auditor referenced the state requirement to issue audited financial statements by July 31).
No formal vote was taken on the auditor’s recommendations during the meeting; commissioners and staff agreed to schedule follow-up work-study discussions and to evaluate proposals for outside accounting services.
