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Sherman County auditors: clean regulatory opinion, GAAP adverse opinion; reclassifications and $20M in long-term debt noted
Summary
The county's independent auditor reported a clean opinion under the regulatory basis while noting an adverse GAAP opinion because the county does not follow GAAP; auditors detailed fund reclassifications, COVID-19 grant reclassification, cash balances, and roughly $20 million in long-term debt.
The county's independent auditor presented the annual report and said auditors will issue two opinions: an adverse opinion under U.S. Generally Accepted Accounting Principles because the county does not follow GAAP, and an unmodified (clean) opinion under the regulatory basis of accounting used by the county.
"As in prior years, we're going to be issuing 2 opinions on the statements," the auditor said while walking commissioners through the report. The auditor described prior-period adjustments that moved amounts previously reported as agency funds into special-purpose funds and moved COVID-19 grant cash back into the county health fund to reimburse expenditures.
The auditor reported that unencumbered cash started the year around $14,000,000, grew to about $15,000,000 after adjustments, and ended the year near $13,800,000; the auditor also summarized a total county cash position of about $16,200,000. On long-term obligations, the auditor listed county debt at about $10,300,000 and the Public Building Commission at about $10,180,000, for combined long-term liabilities of roughly $20,000,000.
The auditor told the commission there were no statute violations to report and only a few small recommendations to improve controls, including post-posting review of adjusting entries and continued monitoring of budget-to-actual reports.
