Hibbing PUC approves clean 2024 audit and April interim financials; staff explains delayed contractor invoices

The Hibbing Public Utilities Commission on May 27 approved the utility’s 2024 audited financial statements and accepted interim financials for the four months ended April 30, 2025.

Commissioners heard from Mr. Peterson that the 2024 audit, prepared by ABDO (auditor Bonnie Schweiger), showed no recommendations or qualifications and marked the first year in decades the utility did not report a negative operating loss. The commission voted to approve the audit after a brief discussion.

The meeting also included a review and approval of the April 2025 interim financials. Mr. Peterson told commissioners the utility’s year-to-date results were stronger than the same period in 2024, noting total income (revenues minus expenses) for the period ending April 30 was roughly $2.5 million compared with about $1.6 million at the same point last year.

During the consent-agenda discussion, Commissioner Stokes pulled item 5a to ask about large invoices appearing with invoice dates from January that were paid in May. Mr. Peterson explained that several pay applications covering January work (including Rice Lake Construction pay applications and a Virginia Transformer invoice) arrived in the utility’s DocuSign workflow later than the work completion date; his approvals did not occur until March, which delayed processing and payment. He said the utility’s 30-day payment clock runs from invoice acceptance, and that reimbursement requests through the Public Facilities Authority (PFA) are submitted only after the utility accepts the invoice.

On the invoice timing Mr. Peterson said, “this is all on me, as well,” noting the delay resulted from routing and DocuSign issues and that staff have been communicating with the contractors involved. Commissioner Sasseur asked whether the late approvals would affect the audit; staff replied the audit covered December 2024, so the delayed January invoices fell outside the audit period but should be explained in next year’s audit if recurring.

Actions: The commission approved the April interim financials (motion by Commissioner James Bayless; second by Chair Jeff Hart) and the 2024 audit (motion by Commissioner Stokes; second by Commissioner Babbage). Both motions passed with unanimous support.

Why it matters: A clean audit and improved interim results were presented as signs that the utility’s recent operational changes and cost management are improving financial stability. The delayed invoice discussion flagged internal controls and workflow timing as items staff will address to avoid future documentation or reimbursement issues.

What’s next: Staff will tighten invoice processing within the DocuSign workflow, continue communications with contractors and provide explanations in the next audit period if necessary.