Banner County accepts 2025 audit, auditor flags segregation-of-duties weakness

Banner County commissioners voted Jan. 20 to accept a 2025 audit presented by Kevin Sylvester of Dana Cole, who said the countys cash-basis financial statements received an unmodified (clean) opinion. Sylvester reported total county cash of $2,050,009.34 and described restricted and unrestricted portions of that balance.

The auditor told the board that the audit showed the countys cash-basis statements "fairly present, in all material respects," but the government-auditing standards review identified a material weakness in internal control caused by limited segregation of duties in the clerk/treasurer functions. Sylvester said that is a common issue in smaller Nebraska counties and recommended steps to reduce risk, including additional staff responsibilities or procedural compensating controls.

Commissioners asked for clarification about fund balances and budget presentation; Sylvester pointed to supplementary schedules (pages 2330 of the report) that reconcile budget-to-actuals and fund balances. He also noted an administrative issue: certain law-enforcement special-project costs were recorded without the corresponding budget line and will require either a budget amendment or reclassification.

Motion to accept the audit was made, seconded and approved on roll call. The board directed staff to bring recommended corrective actions for the segregation-of-duties finding to a future meeting and to work with the countys budget preparer to reconcile beginning- and ending-balance differences flagged by the auditor.

The countys next procedural steps are to file any required agency correspondence related to the government-auditing-standards report and to implement administrative changes to reduce internal-control risk.