Stephenson County receives clean audit but auditors flag four internal-control weaknesses

Stephenson County officials received an unmodified (clean) audit opinion for the fiscal year ended Dec. 31, 2024, but auditors highlighted four material weaknesses the county must address.

Lindsay Fish of Sikich told the county board the audit found the financial statements "presented fairly in all material respects" and that the firm issued a clean opinion. Fish said auditors nonetheless identified four material weaknesses tied to material audit adjustments (largely driven by converting county records to the accrual basis), incomplete capital-asset records and problems in nursing‑home accounting for receivables and payables.

Fish reviewed key financial figures from the annual financial report: total net position for the county reported at $47,600,000; governmental activities representing roughly $46.45 million and business-type activities about $1.15 million. Governmental-fund revenues were listed at approximately $40.8 million with expenditures of $38.7 million, producing a fund-balance increase of about $2.9 million. For the nursing-center fund, operating revenues were roughly $4.8 million and operating expenses about $4.6 million, resulting in an operating margin of about $206,000.

Fish also reported pension schedules: the IMRF plan showed a net pension asset of $1.5 million, and the SLEP schedule showed a net pension liability of $3.4 million with a 91.2% funding level.

During board questions, member Tim Jogers noted the nursing-center margin and asked whether unpaid bills (he referenced more than $2 million) affected that figure; Fish confirmed outstanding accounts payable are recorded and should be included in operating expense figures and supporting schedules.

After discussion the board voted to receive and accept the audit by roll call. The motion carried according to the clerk’s roll call.