2022 audit shows $700,005 fund balance; auditors warn of internal‑control gaps

Carrie Leonard, managing partner at Johnson Block, presented the Vernon County 2022 audit and told the board the governmental fund balance increased to $700,005 after a $529,791 decrease in 2021. "Be active in reviewing financial statements, monitoring the budget, and questioning variances," Leonard said, urging more board oversight given limited staff separation of duties.

Leonard outlined revenue trends and internal findings: shared taxes and Human Services were the largest intergovernmental revenues in 2022, equalized value rose about 71% over nine years and the property tax levy rose 16% from 2015–2022. Board members pressed on proprietary funds; Leonard explained Vernon Manor had a slight net income increase while Vernon Acres saw a decrease but both ended 2022 with positive net positions.

Supervisors also focused on internal controls. Supv Olson raised an unreconciled payroll‑liability item identified in the audit and asked whether it related to dual‑control weaknesses; Leonard and Finance Director Bobbi Johnson connected the issue to ongoing efforts to centralize finance processing and said centralization should improve controls. Supv Meehan‑Strub emphasized the need for consistent approvals across departments to reduce risk of error or fraud.

Next steps noted by staff include review of the single‑audit report for material weaknesses and implementation of stronger reconciliation and approval procedures. The board did not take a separate motion on the audit at the meeting; Leonard and staff said they would provide the audit materials and the single‑audit findings for committee review.