Auditors give Adams County a clean opinion but flag repeat findings on statement prep and adjustments

Amber Danowski, signing director at Clifton, Larson, and Allen, told the Adams County Administrative & Finance Committee that the firm issued a "clean audit opinion" for the county's 2025 financial statements and found that the statements "fairly" present year-end balances.

The audit presentation highlighted the county's liquidity and reserves: Danowski said the county held the majority of assets in cash and investments and taxes receivable and reported nearly $41.8 million in total governmental fund balance at year end. She explained GASB classifications of fund balance—nonspendable, restricted, committed, assigned and unassigned—and told the committee the county meets its board policy target for unassigned fund balance.

Danowski identified two repeated audit findings. The first concerns the outsourced preparation of the financial statements: "For cost benefit purposes, most governments outsource that to their auditors to prepare," she said, adding that management still bears oversight responsibility and that the county reviews drafts before distribution. The second finding concerns audit adjustments: auditors sometimes propose journal entries that change reported preliminary numbers, and when changes are significant they become reportable findings. Danowski said some adjustments are one-time items while others recur and that the auditors will work with staff to address them.

On grant reporting controls, Danowski recommended strengthening review steps after identifying instances where reimbursement requests did not always tie to underlying support. She noted the county's internal controls caught at least one discrepancy and it was corrected before repayment was required.

Committee members asked whether the auditor should present the report to the full county board. After discussion the committee agreed to ask Danowski to present to the full board this year and leave future practice for the full board to determine. The committee did not take formal action on the audit in this meeting.

The committee's next regular meeting is scheduled for Oct. 14; the county board will receive the 2025 audit per the committee's direction and may decide whether future full-board presentations are required.