The Knox County Board accepted the county’s annual audit Wednesday after hearing from its outside auditing firm that the county received a clean, unmodified opinion on its financial statements.
Matt Sheiler, a partner with Wipfli LLP, described the opinion as “the passing grade” for the county. He said the audit found no compliance findings, no questioned costs tied to federal funds and no findings in either the circuit court audit or Department of Corrections compliance audit.
The county spent about $4.7 million in federal awards during the year, including about $2.5 million in state and local fiscal recovery grant funds.
The audit did identify two internal control findings tied to financial reporting procedures. One involved the circuit clerk trial balance not balancing properly after a software change. The other involved bank and other accounts not being reported through the county’s centralized financial system.
Sheiler said the money is being deposited properly, but some financial information remains reported within individual offices instead of flowing through the county’s centralized accounting system.
Board member Pam Davidson asked whether that creates a risk that money could come up missing. Sheiler said auditors flag those situations because any time information is not flowing through a centralized system, it presents a risk.
He said Wipfli still audits and verifies the accounts through information provided by elected officials, though the county would have better month-to-month financial reporting if all accounts flowed through the same system.
Sheiler also recommended timely deposits, close monitoring of about $1.3 million in accrued compensated absences and consideration of transferring unrestricted investment income from Social Security and Illinois Municipal Retirement Fund accounts into the county general fund with board approval.
He said the county’s Illinois Municipal Retirement Fund regular plan was funded at 101.74 percent, while the sheriff’s law enforcement personnel plan was funded at 93.16 percent. The county reported about $56.2 million in cash, with deposits secured and collateralized.
Board members also continued discussing the 50 E. Main St. project while approving several related items.
The board approved a $54,319.75 payment request from Klingner and Associates for completed design work and a $16,500 proposal for a drain system study tied to the property.
Davidson voted no on the related items, saying the county should first hold broader discussions about the courthouse and the future of county buildings.
Board Chairman Jared Hawkinson said he agreed the county should “pump the brakes” on the East Main Street project, but said the Klingner payment reflected work that had already been completed and not paying the bill could expose the county to litigation.
Board members said the drainage study could help determine whether the project remains viable or provide useful information if the county later decides to sell or continue developing the property.
The drainage study passed with Davidson and Cheryl Nache voting no.
The board approved a $503,583.75 payment request from MSI for work tied to the Knox County Nursing Home performance contract project. The contract totaled about $7.66 million, with about $1.88 million remaining after the payment request. Davidson voted no.
Board members also approved an ordinance setting compensation for the county clerk, treasurer and circuit clerk at 70% of the state’s attorney’s salary. The amount discussed for the first year was $153,527.92, with future increases tied to the state’s attorney’s salary. Hawkinson voted no.
The board also approved bids to bring back two nursing home therapy department items: a dual-lift platform mat and electric height-adjustable parallel bars.
During discussion, nursing home administrator Jodi Mines said the platform mat would replace manually operated equipment and the parallel bars would support therapy and rehabilitation work.
During public comment, Davidson urged residents to learn American history as the country approaches its 250th anniversary, saying people should understand “the good, the bad and the ugly.”
Ken Springer of the Knox County Area Partnership for Economic Development said KCAP was monitoring state legislation that could affect economic development and housing, including a proposal involving payments in lieu of taxes and portions of the Build Act.
The board also approved claims against the county totaling $2,752,857.28 for the period from April 30 to May 27. That amount included a final American Rescue Plan Act distribution of $7,100.53 to the Community Arts Center.
Other actions included approval of a proclamation naming May 2026 Motorcycle Awareness Month in Knox County, appointment of Mark Suits as a trustee of the Elba-Salem Fire Protection District and approval of an Illinois Emergency Management Mutual Aid System agreement.
All votes were unanimous except where noted. Board member Kimberly Thierry was absent.
The next regular Knox County Board meeting is scheduled for 6 p.m. June 24 at Galesburg City Hall Council Chambers.
