County auditor gives Manitowoc County a clean opinion; auditors flag human services deficit and rising debt

Brian Grunewald, an external auditor with CliftonLarsonAllen, told the Manitowoc County Board the firm issued an unmodified opinion — commonly called a “clean” opinion — on the county’s 2024 comprehensive annual financial report.

Grunewald said the county’s general-fund reserves increased to about $5.6 million at year-end 2024, with unassigned general-fund balances of roughly $3.2 million. Special revenue funds totaled about $4.8 million, and the county’s opioid settlement fund held about $1.3 million at the end of 2024. Grunewald also noted $831,000 in ARPA-related interest earnings available to the county.

The nut of Grunewald’s presentation was his review of the human services fund and long-term debt. He said the human services fund’s expenses exceeded revenues in 2024 by about $2.9 million and that the resulting deficit in that fund rose to approximately $2.8 million after transfers and adjustments. On long-term obligations, Grunewald said the county issued roughly $8.3 million in new debt in 2024 and ended the year with approximately $29.0 million in outstanding principal. He reported the county’s use of the statutory general-obligation debt limit rose to about 6.3% and that debt-service payments consumed roughly 3.7% of noncapital budgeted spending in 2024.

"It is considered to be an unmodified opinion. That is the highest level of assurance that you can receive as part of the audit process," Grunewald said during his presentation.

Why it matters: the audit numbers provide the factual baseline for the board’s upcoming budget deliberations. The human services deficit and the county’s debt issuance were highlighted as areas for continuing attention as the board reviews the proposed 2026 budget.

Supporting details and context: Grunewald reminded supervisors that certain fund balances are restricted by the source of revenue — for example, opioid-settlement proceeds and certain public-health dollars have spending restrictions. He also said the $831,000 shown in the ARPA fund on the slides represented interest earnings on ARPA funds that the county may use subject to federal rules, and that additional ARPA cash has been earmarked as liabilities for municipalities that have approved projects but have not yet met disbursement conditions.

Grunewald flagged ongoing implementation of new governmental accounting standards and noted the county voluntarily submits its statements to the Government Finance Officers Association; Manitowoc County continued a multi-decade streak of recognition by that group. He repeatedly encouraged that debt and related payments be planned and budgeted as part of long-term fiscal management.

Ending: Grunewald concluded by offering to answer follow-up questions and to work with county staff on implementing future accounting standards.