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County auditors issue unmodified opinion; nursing home posts $1.58M operating loss
Summary
CliftonLarsonAllen gave McLean County an unmodified opinion on FY2025 financials and the major federal program tested; presenters and county staff flagged ERP conversion work and a $1.58 million operating loss at the county nursing home that left its fund position negative.
CliftonLarsonAllen and the McLean County Auditor told the finance committee on Wednesday that the county's fiscal-year 2025 financial statements received unmodified opinions and that the single audit reported no major program findings.
Sandy Perry, director with CliftonLarsonAllen, described a risk‑based audit that focused on internal controls (including IT), cash and investments, revenues and receivables, payables and significant liabilities such as pensions and OPEB. Perry said the audit team worked through complications caused by the county's midyear ERP conversion and reconciled data from both old and new systems.
"We're pleased to report that CLA issued unmodified opinions on both the financial statements and the major program tested," Perry said. Auditor Michelle Anderson added that the single-audit opinion covered the COVID state and local fiscal recovery funds and that there were no material financial-statement findings.
Committee members pressed CLA and auditor staff for context on the county nursing home, which Anderson said recorded a $1,580,000 operating loss and had a negative net position with an interfund payable of $1,840,000 to other county funds. Perry said the audit identified the total OPEB liability and the county's self‑insured liabilities as the most sensitive estimates; CLA concluded those estimates were reasonable for the statements as a whole.
Councilmembers discussed the nursing-home allowance for doubtful accounts and bad‑debt expense. Perry said the nursing home increased its allowance significantly from the prior year and that timing and collection lag can drive higher allowances; Anderson added the facility's administrator performs the detailed account analysis that informs the allowance.
The committee accepted the popular annual financial report (PAFR) and the complete audit package by voice vote. Auditor Anderson said the county received a Government Finance Officers Association award for the PAFR (the county's 14th production and 13th consecutive award). Members asked for minor updates to the PAFR before it is posted to the county website.
The audit deliverables include the comprehensive annual financial report, the governance communication letter, the single audit, the circuit clerk's examination and federal data collection forms; the county must file federal forms within 30 days of audit issuance, Perry said.
The committee voted to accept the audit and related reports; staff will proceed with required filings and minor PAFR edits before public posting.
