Independent auditor gives Douglas County a clean 2024 opinion, flags segregation-of-duties issue

Becca Nielsen, manager on Douglas County’s audit from CliftonLarsonAllen, told the board the firm issued an unmodified (clean) opinion for the county’s 2024 financial statements.

Nielsen said the auditors reported a recurring internal-control deficiency: a lack of segregation of duties in some smaller departments that handle cash receipts and disbursements. "It's very common for governments of this size," she said, adding that smaller staffing levels make full segregation difficult.

The auditors identified one Minnesota legal compliance exception: a single payment that was paid more than 35 days after receipt of the invoice. Nielsen said the firm tested required federal programs because the county expended about $4,700,000 in federal funds; the single-audit tests of three major programs — the coronavirus state and local fiscal recovery (ARPA) funds, child support and the medical assistance program — found no issues.

On financial results, Nielsen said governmental fund revenues exceeded expenditures by $2,300,000 in 2024. She reported the county had about $46,000,000 in unrestricted fund balance across governmental funds, and the general fund ended the year with about $30,900,000 (roughly 10.3 months of expenditures). "The office of the state auditor recommends three to five months," Nielsen said, noting the county sits above that benchmark.

Nielsen also walked the board through expenditure trends, noting a roughly $2.8 million increase in general-fund expenses driven in part by approximately $1.8 million for public safety (cost-of-living adjustments and step increases) and about $600,000 in general government cost increases. She flagged that next year the county must implement GASB Statement No. 102 for certain risk disclosures but said the effect should be limited.

The board did not ask follow-up questions beyond routine thanks and accepted the presentation.