Vernon County audit: clean opinion but repeat internal control findings

External auditor Greg Patel presented Vernon County's 2024 audit at the board's August meeting and reported a clean, unmodified opinion on the financial statements, while noting several repeat findings tied to internal controls and accounting processes.

Patel told supervisors the audit has two phases—controls review and financial statement testing—and that the financial statements produced an unmodified opinion. "The financial statements contain a clean, unmodified audit opinion, which is what you're striving for," he said. He identified four findings recorded in the management communications letter: two related to preparation of reports (financial reporting and the schedule of federal and state awards) and two more material issues (material account adjustments and lack of segregation of duties), which he linked to finance‑team turnover.

Patel said an exit conference discussed the nature of material adjustments and that county staff (Cassie and Annie referenced in the packets) had accepted responsibility and would work to reduce future adjustments. He also noted the ARPA reporting finding from last year has been remedied.

The presentation included fund‑balance and proprietary fund analyses: the county's unassigned fund balance declined to approximately 52.0% of general fund expenditures, down from earlier years but within acceptable ranges according to bond‑rating commentary; Vernon Manor and Vernon Acres showed improved operating performance after contracting changes and Medicaid rate adjustments. Supervisors praised staff for the turnaround and asked about the causes behind the adjustments; Patel and staff explained turnover and coding practices were primary drivers and outlined steps to strengthen coding and segregation of duties.

No board action beyond acceptance of the presentation was recorded in the transcript; staff will continue addressing the audit findings and report back on remediation steps.