Mayville auditors report improved fund balance, note remaining internal-control items

John Raider, an external auditor, presented the City of Mayville's 2024 annual audit at the Mayville Common Council meeting, saying the audit contained no material adjustments and that the city's financial condition has improved.

The auditors said the city's unassigned general-fund balance climbed to roughly $1,200,000 from about $647,000 the prior year, driven by higher-than-budgeted revenues (about $330,000, mostly investment income) and lower-than-budgeted expenditures (about $200,000). "This is mostly a good report this year," Raider said.

The auditors emphasized why the numbers matter: a larger unassigned balance gives the council more flexibility for budgeting and helps the city meet its fund-balance policy. Auditor Aaron Galvin pointed out that the unassigned portion rose to about 24.4% of next year's budgeted expenditures, near the city policy target of 25%.

Beyond the headline numbers, auditors noted improvements and lingering internal-control items. Raid er and Galvin commended monthly bank reconciliations and year-end work papers for being completed and independently reviewed this year, which reduced the number of adjusting journal entries needed. At the same time, they said some journal entries and adjustments in the city's accounting system were not consistently subject to independent review, and some segregation-of-duty risks remain because of small staffing levels.

The auditors also walked the council through debt metrics. Mayville used about 22% of its general-obligation debt limit; excluding utility debt the comparable figure would be roughly 15%, the auditors said. They described the city's debt-service burden as modest compared with peers of similar size.

Council members asked about other items in the audit report, including deficits in some special funds and whether the city had lost eligibility for certain spending constraints because of regulatory changes; auditors and staff said budget discussions and consultation with the city's financial adviser would be appropriate during the upcoming budget process. "We'd suggest going to them during budget time to make sure you do qualify," an auditor said.

The auditors provided a list of recommended financial policies and said many previous comments had been resolved or were improving. No formal council action was taken at the meeting on the audit presentation; the report was presented for the council's review and will be posted to the city website as part of the public record.