Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Watertown audit: auditors issue clean opinion; general fund rises to about $8.6 million
Summary
An independent audit presented to the Watertown Common Council found an unmodified (clean) opinion for the 2024 financial statements, a larger-than-expected general fund balance and healthy utility reserves; auditors noted a material weakness in financial reporting related to the city preparing its own statements and audit adjustments.
Andrea Jansen, principal with Baker Tilly, told the Watertown Common Council on July 15 that the firm issued an unmodified — or "clean" — opinion on the city's 2024 financial statements. The audit showed the city's general fund balance increased to roughly $8.6 million, with an unassigned fund balance of about $6.7 million representing 33.1% of budgeted expenditures, above the council's 25% policy target.
Jansen said the audit includes required communications about internal controls and noted a material weakness related to financial reporting, "one, because we prepare your financial statements on your behalf and, two, because we have found material audit adjustments during our procedures." She said that combination is common for municipalities of Watertown's size and staff resourcing.
The report outlined the city's debt and utility finances: general obligation debt outstanding was about $28.2 million at year-end, the note anticipation note of $14.6 million is expected to be refunded as general obligation debt in 2025, and utility funds showed healthy cash reserves — the water utility reported about $2.4 million in operating income and roughly six months of cash on hand, the sewer utility about $1.1 million operating income with substantial unrestricted reserves, and the stormwater utility reported a small operating surplus and more than a year of reserves.
Council members asked for the full formal audit documents and comparative data referenced in the presentation. The auditor said the full financial statements and reporting package would be posted on the city's website and agreed to provide the comparative dataset on request. No formal council vote or ordinance accompanied the presentation.
The audit also included commentary on fund-balance policy: Jansen said the city is slightly above its target range for unassigned fund balance and could consider assigning portions to specific reserves or projects. She thanked city staff for cooperation during the audit.
No action was taken at the meeting related to implementing the audit recommendations; council members said they expected staff follow-up and distribution of the full audit package.
