Auditor gives clean FY25 opinion; board approves audit after discussion of GASB restatement and capital asset finding

Auditor Amanda Webb MacKernelson presented the countys FY25 audit and reported a clean (unmodified) opinion. The auditor told the board that a new GASB standard required restatement of compensated-absence balances to 2024, which in aggregate lowered governmental net position by "a little over $1,000,000." She identified key estimates in the financial statements (IPERS liabilities, capital asset useful lives, and compensated-absence liabilities) and noted one recurring internal-control finding related to capital asset records and aggregation across departments.

MacKernelson said there were no disagreements with management and no uncorrected misstatements. She recommended that supervisors review the management discussion and notes, especially the disclosure explaining the accounting change and the restatement.

After brief discussion and clarification questions about the capital-asset disclosure and internal controls, a supervisor moved and seconded to approve the FY25 audit report (referred to in meeting materials as the Hacker Nelson audit). The motion passed on a unanimous voice vote.

Why it matters: a clean audit opinion indicates the financial statements present fairly, in all material respects, the countys financial position under generally accepted accounting principles; the GASB restatement increases the reported liability for compensated absences, which affects reported net position and financial trend analysis.

Next steps: staff will address the capital asset recordkeeping issue over time, continue to monitor significant estimates, and file required reports per state reporting rules.