Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance Audit topic
No spam. Unsubscribe anytime.
City audit shows unmodified opinion; finance staff and auditors flag material‑weakness reporting
Summary
Baker Tilly issued an unmodified (clean) opinion on West Bend’s 2024 financial statements while reporting a material weakness in internal controls and noting a single audit is required for federal grants.
The City of West Bend’s 2024 financial statements received an unmodified — or "clean" — opinion from auditors Baker Tilly, the firm told the Finance Committee on June 16, but the audit’s communication of internal control matters included a reported material weakness tied to the city’s role in preparing its own financial statements.
Andrea Janssen, a principal with Baker Tilly, said the firm issued the highest level of assurance but noted a new accounting standard implemented in 2024, GASB 101, will be identified in the audit’s emphasis-of-matter paragraph. She also said the city will require a single audit related to federal and state grant compliance; that single-audit report is expected in September.
Janssen told the committee the city’s general fund held a total fund balance of about $14 million at year-end 2024, with unassigned fund balance around $9.1 million and a newly committed $2.2 million for Fire Station 1. The general fund produced a positive net result of roughly $643,000, she said, driven by stronger-than-expected investment income and expenditure savings from salary vacancies.
“We were able to issue an unmodified opinion on the city's 2024 financial statements,” Janssen said. “That's the highest level of assurance we're able to give, also known as a clean opinion.” She added the material-weakness disclosure is common in municipalities that have auditors assist with preparation of financial statements.
Janssen described debt metrics as stable: the city’s general-obligation debt outstanding is well under Wisconsin’s statutory limit — 5% of equalized value — and utility funds showed healthy cash reserves and low debt funding as of year-end. The water utility’s operating return was 3.88% in 2024, the auditors said, and the sewer utility recorded operating income of approximately $481,000 after a midyear rate increase.
Committee members asked no substantive follow-up questions at the meeting; council and staff thanked the audit team for the presentation and for work by finance staff. The audit’s formal communication and required single-audit report are expected to be issued later this year.
