State auditors told Mason County officials the county received clean accountability and financial-statement audit opinions for the 2024 fiscal year, but the single-audit review of federal grants uncovered a material weakness tied to coronavirus state and local fiscal recovery funds (ARPA).

Tim, the state audit lead, said auditors performed three audit types for the period Jan. 1'Dec. 31, 2024: the accountability audit, the financial-statement audit and the single audit. "We did in fact find that the county's operations complied in all material respects with the applicable laws, regulations, and your policies," Tim said, summarizing the accountability results. He added the team issued an unmodified opinion on the county's financial statements under its regulatory (cash-basis) accounting and an adverse opinion relative to GAAP because the statements are not prepared on a GAAP basis.

The single audit focused on federal programs and selected ARPA as a major program, representing 48% of the county's federal spending. Tim said auditors identified a finding under federal suspension and debarment requirements: in testing six contractors, one vendor paid $25,702 had no documentation to show the county verified suspension/debarment status before contracting. "We consider that deficiency ... to be a material weakness that led to material noncompliance," Tim said, explaining the risk that federal funds could be paid to an ineligible party and that an awarding agency could seek repayment.

Auditors added the county subsequently verified that the contractor was not suspended or debarred, and therefore the auditors are not questioning the $25,702 cost. Still, auditors recommended the county strengthen internal controls to verify that all contractors paid $25,000 or more with federal funds are checked for suspension/debarment and that supporting documentation is retained. The county's corrective action plan is included in the audit packet with anticipated completion dates; auditors said they will review corrective steps next year.

Vinny of the auditor team told officials the formal audit report and findings will be published in about one to two weeks and that lower-level exit items provided to management are public records available on request. He also said the team would request a signed management representation letter before finalizing the file. Auditors estimated total audit costs at $82,000 and reported the work came in about $5,000 under that estimate.

The audit presentation included recommendations for procurement practices and recordkeeping and offered no-cost support resources from the state's local government support team and the Center for Government Innovation to assist county staff with implementation.

The meeting closed after county representatives thanked the auditors and the auditors noted they will revisit the reported finding in next year's audit cycle.