KPN gives Cass County an unmodified audit opinion; auditors flag ARPA drawdown, single-audit coverage and upcoming GASB changes

KPN, the county—s independent auditor, presented the 2024 financial statement audit and the single-audit report to the Cass County Commission on Oct. 29 and said the firm issued an unmodified ("clean") opinion on the financial statements and the single-audit. The auditors reported no material weaknesses or significant deficiencies in internal controls.

The auditor described results for major funds. The general fund had "total revenues this year of just over 20,000,000," with an approximate $2,000,000 increase from the prior year and total expenditures described as 9.6 (spoken as "9.6" in the presentation; units were presented verbally). The road and bridge fund showed increased capital outlay and an ending balance described as about 17,100,000. The Justice Center sales tax fund was reported with approximately 21,800,000 in revenue and roughly 27,000,000 in expenses driven by capital outlay for a building/medical intake project; its ending balance was described as just over 8,000,000.

Auditors said the county—s ARPA fund was recognized this year with about 7,900,000 in revenue and 8,500,000 in expenses, reflecting use of ARPA for jail build-out, county overlay and courthouse window projects; the ARPA fund balance was reported as zero after those expenditures. The auditors emphasized that the county had significant federal awards spending that triggered a single-audit and that KPN issued an unmodified opinion on compliance for major programs. The two major programs the firm tested under Uniform Guidance were highway planning and construction and the county—s coronavirus/ARPA program.

KPN—s governance letter also noted upcoming Governmental Accounting Standards Board pronouncements that will affect future financial reporting (GASB statements described verbally as numbers that will take effect in 2025 and 2026) and recommended continued attention to cybersecurity and information-technology controls. The auditors said they tested internal controls related to cash handling, time-sheet approvals and procurement thresholds and reported no deficiencies to the commission.

KPN praised county staff for providing records and supporting the audit process and explained that fiduciary (custodial) account reporting and the schedule of expenditures of federal awards require careful tracking across county offices. The presentation closed with no disagreements with management reported and no additional audit findings.

Quote: "We are giving Cass County an unmodified or clean opinion on the December audit of the financial statements," the KPN presenter said. "We did not have any material weaknesses or significant deficiencies to discuss with you today."