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County audit shows strong controls; Sikich reviews prompt ongoing tweaks and a fraud hotline
Summary
Chippewa County officials reported an unmodified 2023 audit opinion and described Sikich internal control/forensic reviews that produced recommendations and led to a $1,300‑a‑year fraud hotline; staff said processes are strong but improvements will continue.
Chippewa County leaders told the executive committee on Tuesday that independent reviews of county finances show broadly effective controls while identifying opportunities for tighter procedures.
County Administrator Randy Schultz introduced results from a series of internal control and forensic reviews performed by Sikich, saying the audits supplement the county’s annual financial audit and help the county “make sure that we were in good standing.” He thanked finance staff for implementing key recommendations.
Lori (finance staff) summarized Sikich’s work, which has focused on accounts payable, purchasing controls and payroll. She said Sikich’s reviews — covering multiple years and sampling thousands of transactions in recent sheriff’s and public‑health reviews — produced recommendations the county has been implementing. Two specific changes already adopted were a bank positive‑pay file to prevent altered check clears and stricter documentation and distribution controls when purchasing gift cards for program participants. “These reviews are done in addition to our annual audit,” she said, noting the county continues to roll out training and to date has not received any hotline reports through a third‑party fraud reporting service contracted for about $1,300 a year.
April Anderson, a principal with CliftonLarsonAllen, delivered the 2023 executive audit summary and reported an unmodified opinion on the county’s financial statements — the highest audit opinion available. She said the firm found no internal‑control or grant‑compliance findings in its testing. Anderson highlighted a $1.8 million increase in net fund balance year over year, a recovery in investment values, and a healthy unassigned‑fund balance ratio (about 36.2% of general expenditures in 2023), which the county’s bonding advisors view favorably.
Anderson also reviewed special‑revenue and enterprise fund activity, noting the county had received approximately $12.5 million in American Rescue Plan Act funding with about $5 million remaining unspent and available for obligation through 2026. She said the county’s general obligation debt outstanding remains modest relative to statutory capacity.
County staff said the Sikich work and the CliftonLarsonAllen audit are complementary: the forensic reviews identify operational fixes and the annual audit confirms financial statements and grant compliance. Committee members asked about implementation timelines, how the fraud hotline would be triaged, and which recommendations remain outstanding. Staff said they will continue training, keep written procedures updated with revision dates, and bring future follow‑up as needed.
The committee received the reports; no formal action was required on the audits at the meeting.
