Winneshiek County Supervisors Receive Clean FY2025 Audit Opinion

It's your town. Your lives. Your stories. Make sure someone's telling them—donate to Decorah News now. DECORAH — The Winneshiek County Board of Supervisors received a clean audit opinion and a largely stable financial picture during a presentation Monday morning from CPA Amanda Webb of Hacker Nelson. She outlined the county's fiscal year 2025 audit findings, including key accounting changes, long-term trends and ongoing internal control concerns. Webb focused on the county's audited financial statements, a document exceeding 80 pages, and encouraged supervisors to review the management discussion and analysis section, which summarizes the county's financial performance. At the core of the audit, Webb said the county received an unmodified, or "clean," opinion, meaning its financial statements are presented fairly in all material respects. That conclusion applies despite standard accounting estimates and adjustments required to convert the county's cash-based records into accrual-based statements for state reporting. Among the most significant changes in this year's audit was a new governmental accounting standard affecting compensated absences, including vacation and sick leave. Webb said the rule required the county to restate its prior-year financial position, increasing reported liabilities. As a result, the county's governmental net position for fiscal 2024 decreased by more than $1 million, while business-type activities saw a reduction of roughly $60,000. Webb noted that several major figures in the audit rely on estimates, including the county's share of the Iowa Public Employees' Retirement System liability, infrastructure depreciation and the recalculated compensated absence obligations. She described these as "pretty big estimates" that can significantly influence reported financial conditions. Despite the complexities, Webb reported no material misstatements, no disagreements with county staff and no audit difficulties. She said there was no indication the county sought outside opinions to challenge audit findings, a practice auditors monitor as potential "opinion shopping." Financially, the county showed modest changes compared with the previous year. Governmental revenues increased about 1.45 percent, while expenses declined roughly 3.77 percent. Webb characterized the year as "pretty consistent" with fiscal 2024, reflecting stable operations without major swings in spending or income. Long-term data in the audit show governmental fund revenues have generally hovered around $24 million over the past decade, with fluctuations largely tied to one-time funding sources such as federal aid or specific projects. Expenses have followed similar patterns, allowing supervisors to track trends over time. Webb also reviewed required audit reports on internal controls and compliance. The audit again flagged segregation of duties as a concern, a common issue in smaller governments with limited staffing. She noted the finding appears routinely in audits of similar-sized entities and is not tied to any specific wrongdoing. The only other recurring finding involved capital asset reporting. Webb said the county lacks a single, centralized system to track all assets, requiring auditors to compile information from multiple departments, including the auditor's office and secondary roads. While not an indication of error, she said the decentralized process makes reporting more complex and less efficient. Supervisors discussed the challenge, noting differences between accounting valuations and real-world replacement costs, particularly for equipment and infrastructure. Webb acknowledged that depreciation methods used for accounting purposes may not align with insurance or replacement value estimates. Webb also praised county staff for their cooperation, noting that improved electronic records access has reduced audit fieldwork from up to two weeks on-site to about four days. The board voted to approve the audit report following the presentation, expressing appreciation for the longstanding relationship with Hacker Nelson and noting that many governments face difficulty securing audit services. Get the inside scoop! Subscribe to the free DecorahNews.com newsletter and receive local news, expert analysis, and stories that matter most—straight to your inbox.