Sikich representatives told the Stephenson County Finance Committee on Nov. 7 that the county’s fiscal year ended Dec. 31, 2024 received an unmodified (clean) audit opinion, but the auditors identified four repeat findings in internal control that require continued management attention.

The audit presenter said the unmodified opinion means “your financial statements are presented fairly in all material respects in accordance with generally accepted accounting principles.” At the same time, auditors flagged material audit adjustments made to convert the county from a cash basis used during the year to the accrual basis required for the year‑end financial statements, which the auditor said creates a material weakness classification in internal control when auditors post material adjustments.

Auditors also reported a restatement to the beginning capital asset balance after discovering previously purchased assets that had not been added to the county’s capital asset listing. The report identified challenges in maintaining a comprehensive capital‑asset inventory and recommended continued attention to that work.

Two repeat findings related specifically to the county nursing facility: nursing‑home accounts receivable and allowance for doubtful accounts had not been updated from the prior year and lacked a supporting analysis, and payables activity for the nursing facility was not all recorded timely in the general ledger. The auditors said they made manual adjustments to correct those balances for the audit.

The audit presentation also summarized financial highlights: governmental‑activity net position of roughly $46.4 million, total revenues of about $40.8 million and expenses of about $38.7 million, resulting in an increase in fund balance of about $2.9 million. Auditors noted new GASB guidance affecting the reporting of compensated absences and related restatements.

Auditors provided a single‑audit section with management responses and a corrective‑action plan for each finding. Committee members asked follow‑up questions about access to nursing‑home accounting software (MatrixCare) and whether loss of access could complicate next year’s audit; county staff acknowledged it as a potential issue.

The audit record and management responses will be included in the county’s final audit reports.