February 24, 2026

Commissioner Jabbour

Good and ready

Commissioner Strickland

Saturday 8-1 is the volunteer drift fence project. If you’d like to join us or just come out and in support, just say hi, you could always bring donuts and coffee. It’ll be going on there on roadrunner. 1 Page February 24th, 2026, Page 2

Commissioner Koenig

over the weekend, a group went out to the shooting site, cleaned up. CNS gave us a huge dumpster, and someone loaned them a skip loader, so it went pretty quickly. It’s all nice and clean out there.

Commissioner Boskovich

Thank you all for being here for a special meeting and hopefully this will go relatively quickly. do we have any managers or directors on the phone.

Commissioner Strickland

Why didn’t we augment prior to reporting? Dan McArthur There was some work done at the very end of June I believe the last meeting in June or the second and last meeting in June. I do have some comments in the report that relate to this that I think addresses this and I think I’ll just discuss one of them right.

Commissioner Strickland

We have our Thursday meetings that where we do this every Thursday, and so we have a timetable that we run off of to make sure we’re hitting our marks, I would like to request that within the body of that timetable that we put augmentation and the timetable so we can address that up front. McArthur —let’s go to the back of the report. As part of the audit there are comments that we’re supposed to make concerning areas we find for improvement. and so, I would like to turn to page 356. This says schedule of findings and responses. This is finding #2025001 It says financial period is closed. This relates to getting the books closed on a . monthly basis and preparing financial information. There are the financial reports and I’m not talking about the cash report that comes into you from the treasurer’s office, this actual financial information. We’re closed inside the comptroller’s each month. because that work is not has been done on a timely monthly basis with the books closed and reconciled, without that information, when you’re looking at budget augmentations at the end of the 5Page February 24th, 2026, Page6 6.For Possible Action — Cont... year, if you don’t have that timely information then you have a problem making those decisions. fixing this to me would fix that process. Tie that back down one more step is after the end of the year there’s a lot of payables that show up on the books that are pushed back into the prior year, and so part of this closing process and following everything month by month by month, you get a better feel for do we have all the payables on the books as of say June 25th Even though you haven’t received them all you can have an idea of what they are, and to me that would help alleviate that problem. That’s the only NRS issue that’s inside the audit report. There’s no other NRS findings. I just want to move on from this; I just like to stay in this section right here. On page 357 there’s a finding concerning room tax late payment penalty. I know you’re all aware of this or this relates to the finding of not assessing a 10% penalty for not paying by the 15th I really don’t think I have to really spend a lot of time on this because it’s already been discussed in your meetings, but this came to light during the 24/25 audit year and so that’s why it’s in here. you see on the bottom of that it says the “user of responsible officials” county management agrees with the finding recommendations. the recommendation is partially implemented. the treasurer’s office prepares room tax collection reports which is used to support the receipts. comptroller’s office is evaluating the departments priorities and is looking into implementing additional corrective action of the plan by the end of the first quarter of 27. that’s shortly here within by March 31st• I don’t feel like I need to belabor that point. the next one, page 358, this is finding 2025003, monthly officer department reports. many offices in the county collect money and remit that money on a monthly basis to the county treasurer. once it’s remitted the county treasurer receipts that money and it’s put on the books ofthe county. state statute pushes for elected officials thatthat money should be turned in by the 5th working day ofthe following month. and when you go read the statutes for some it says by the 5th day following the close of the month and other statutes saved by the 5th working day, and so I’ve interpreted that to be the 5th working day, because they’re inconsistent inside the statute. There was a policy that got put in county level here a few years ago where several offices didn’t like the 5th working day of the month, they said we can’t get the bank statements etcetera timely and so it was pushed out to the 8th working day of the month. As long as it gets in there timely, I think that’s appropriate. I can see the issue with the 8th of working day of the month also. but that’s something I know the comptroller’s going to deal with. some ofthe offices didn’t get their money turned in timely. At least one office wasn’t aware they were supposed to turn their money in on a monthly basis, and so this is part ofjust educating everyone that has financial responsibilities and that’s basically what the the comments and the findings are here and at the bottom of the page is the response from the county as they’re going to deal with this. Now the next item on page 359 reconciling items on the bank reconciliation not timely resolved, the county treasurer comes before the Commission on a monthly basis, produces a bank reconciliation. There’s been issues where there’s been items that carry over from month to month that haven’t been reconciled. The only way that can basically get reconciled is to have the county treasurer and the county Comptroller work together, because to get reconciling items off the books, there has to be journal entries made inside the general Ledger to clear those up, or there has to be communication with other officers in the county about maybe a specific receipt. Those aren’t being done timely, and we have suggested that there be a monthly meeting between the county treasurer 6Page February 24th, 2026, Page 17 6.For Possible Action — Cont... County Comptroller. Next comment, monthly financial reports Page 360. Right now, the County Commission gets a report from the county treasurer monthly about what the cash balances are. and there’s a quarterly report that’s produced from the comptroller’s office that gives you a revenue and expenditure budget versus actual report. And what we’re suggesting or recommending there is we’re suggesting that on a monthly basis that the county Commission receive a cash report from the treasurer and also receive a revenue, expenditure, and change in fund balance report, or a net profit report, on any funds or all funds that the county Commission may want. and also receive a balance sheet each month from the county comptroller’s office, so that each month there is a full set of financial statements that come before the county commissioners. You get the cash reconciliations, you get the assets and liabilities, balance report, and you get the profit and loss report. Inside the statute, it talks about auditor duties, and it says that the county auditor, which is now the Comptroller, is to keep the county Commission updated constantly concerning the funds that are in the treasury. I believe in order to do that there at least need to be monthly financial statements that come before the county Commission and I would just suggest those additional financial statements be part of that to give you the information to better manage the activity of the county. The next one is the reconciliation on page 361 now reconciliation of individual grants within the county grant . fund. Again, the county grant fund has 130 active and inactive projects inside that fund, and inside that fund they’re supposed to balance as if they’re separate individual funds. As we were working through it this year there were many grants where they didn’t balance, where going to get away account with you here for a minute but assets minus liability should equal fund balance. in other words, they always say accounts have to be imbalanced debits and credits have to balance to 0 for each fund, pluses and minuses or 0 for each grant. When they don’t inside the grants fund it’s possible an expenditure could take place for a grant and not the money may have already been spent someplace else if it isn’t reconciled each month. last comment, page 362. Multiple county funds were out of balance. This again is similar to the issue with the grants fund. When we begin an audit, we pull from the system what’s called a trial balance. That’s all assets, liabilities, fund equity, revenues, and expenses. and when we take those numbers, they’re supposed to net to 0. When we pull the trial balances this year, we found a few funds where they didn’t balance to zero, we thought well this is really unusual there must be a problem with the system. At that point we then have to take another step where we take that trial balance, and we go into the detailed postings inside this system we call the GLPA. The system is called the GLPA inside of Eden. and so, it required us to go through each one of the line items and trace all the numbers in the GLPA to see why they weren’t inside of the trial balance to see if that was the problem. What we found is is last year everything was balanced. It appeared to us that when the new accounts were added, there’s multiple fields that have to be completed for it to pull properly into other finance reports the county may print. our comment here is is that when new accounts are set up there should be a trial balance printed to make sure everything’s pulling in there as well as maybe other finance reports, just to make sure that you’re not getting a report that tells you one thing and all of a sudden there’s an account that might have $5,000,000 in it, and you don’t see that you make decisions often in improper report. Those are the items that I absolutely need to discuss with you as part of the audit. I just have two other financial pages I’d like 7Page February 24th, 2026, Page 8 6.For Possible Action — Cont... to go Over, then I can go deeper into this if you’d like but I’ve covered what I need to cover. I want to go back to the front of the report and talk about the major funds. I just want to point this out so it’s clear to everyone. I want to go to page 11 0. The county capital projects fund that there’s just a significant number in here and I just feel I need to disclose this. I have the page below, there’s a $5,000,000 entry in here those are just developer fees, one time payment so that you know, and you see they sit inside this capital projects fund. you’re aware of what that’s for if I can. page 106. I just want to point out that you see under the fourth line down, you see due from other funds, you see zero in 2025 and 2024 you see the $5,780,000. that was the loan from the county grants fund to cash flow the general fund. So, you can see that that loan has now been paid back, because it’s no longer receivable here inside the grants fund, and correspondingly ifwe go to the general fund balance sheet, you can see that receivable has now been removed from page 110 general fund of the county. You can see the top of the page, you see pool cash and investments, cash at the end of this year 25 is 3,429,000. Last year it was 9,652,000. You go to liabilities; you see the third line down it says due to other funds, there’s no money due to another fund the 5,780,000 has been paid back to the grants fund. If you look at that cash number, the difference is basically repayment of that loan back to the county grants fund. You getto the bottom ofthe page, and you look at fund balance. fund balance in the general fund at the end of 25 is 8,122,000 at the end of 24 it was $6,495,000. There’s a significant number of receivables that show up in this general fund as of June 30th back up the top of the page the fourth line down shows due from other governments $6,303,000. significant amount of money came in after the end of the year. just so you can see see where those items are. I’ve touched on the significant items; I’ve touched on the compliance and internal control comments. If there’s other areas within the financial, you’d like to go, I’d be happy to do it. or I can complete my presentation right here. Then then with that there is a page in here comments NRS requires to be in the report it’s the very last few pages in the report it talks about budget compliance. it has some other issues in here where they’re supposed to be some information related to expenditures that are made out of the capital ad valorem tax funds. The information is in here. There are no violations, it’s just a comment inside this report. So, other than those items I’m just going to close the book for now.

Commissioner Strickland

When it comes to your reporting to D-Tax, it will start on page 363, or do you have your consolidated report for D-Tax. Dan McArthur Page 363 is whatthey’II look at. Right now, the department oftaxation will relate to the budget violations that I initially talked about and then they’ll talk about the comments we just went through, the seven comments about improving operations for the county. department of taxation will want a response to those specific areas on how you’re going to address this. feel like addressing the budget items are fixing those accounting comments in the back. Without fixing that, you’re never going to be able to deal with the budget issues because you don’t have timely information to make those decisions. Public Comment Open: Tim Bohan non One; I’m very concerned about the material weaknesses and significant deficiencies. some of them are repeat, some of them probably should be repeated. What 8Page February 24th, 2026, Page 19 6For Possible Action — Cont... sticks in my mind is, if we have the comptroller’s office doing the audit, then if we can’t get some basic blocking and tackling underneath the financial reporting, then how is their time to do the audit. next thing I have concern is, it does sound like there is a data quality or data mapping issue within the Eden. I don’t know if that’s regularly being looked at. I haven’t heard any process or procedures that have been really discussed and if it was data related, that probably would would show up more than not. from the data governance and data quality standpoint. So that is a significant concern from my perspective as well. the budget offset, I like the idea of the meeting. I would also like to make sure there’s a little bit of cushion there, so keep that in mind as you’re as you’re getting ready to close out the year for this year, fiscal year end 26. From the balance sheet standpoint, looking back, one of the things that have me concerned, basically at least 20 years, is the unrestricted net position. Many years ago, it was positive. I think the last time it was positive was 2012. roughly I think we have I 000,000 positive and we’ve been negative and declining negative ever since. We did beef up a little bit in 2022, so we’re in -108. here’s what that means. It means that the future revenues are being used to pay for the underwater, if you will the unrestricted. from a budget perspective, as a county need to take that into consideration. We may look good at the bottom from a PNL standpoint, but from balance sheet standpoint, there’s more work to be done. And the other concern I had is our debt to equity is roughly 1 .8 to I as far as debt to equity. Years ago, we were down in the .5 range. We’re close to 2 to one right now. Michael David Garcia this isn’t a great opportunity to recognize the patterns and tendencies when it comes to county and state fraud, to basically undeniable how it’s performed when you control the narrative. The whole thing about compliance is state and federal. How can you be out of compliance on on state and not be out of compliance on federal? why why don’t you have a fiduciary duty to report these federal violations? That’s my claim. because it happens to be the same in every department. y’all shuffle it. It’s his fault, it’s his fault. y’all are the ultimate leader held accountable for all this fraud. y’all didn’t see it you don’t understand when the numbers don’t line up. We tell y’all. y’all don’t even pay attention to our voices. Thankfully we’ve got Minnesota handling this in the correct way. We do have people that can understand compliance, just for y’all to uh I don’t know NRS is really betrayed your constitutional oath because you should be recognizing the federal compliance side even though that may be outside some of y’alI’s jurisdiction and authority. Thank you. Public Comment Closed

Commissioner Commissioner

Strickland — motion to approve

Commissioner Koenig

spay and neuter your pets. Dianna Carrell assistant finance director I wanted to take time to thank all the - - individuals and the work that goes into these audits, financial statements, reconciliations. From the finance office, treasurer’s office, other county employees. Especially Mr. MacArthur and his team. They work diligently and are worth every penny I just wanted to put a great thank you out.

Commissioner Boskovich

adjourned the meeting at 10:52 APPROVED this q day ATTEST: of Chair 10Page