North St. Paul reviews 2024 audited financial report; auditors flag escrow reconciliations and fiber fund shortfall

North St. Paul City officials on May 20 reviewed the city’s 2024 audited financial statements and management report from audit firm LB Carlson LLP, which issued clean opinions on the basic financial statements but identified several areas for attention including escrow/deposit reconciliations, isolated payroll documentation issues, and a large deficit in the fiber‑optic fund.

The management report, presented by Jackie Heagle, partner with LB Carlson, said the auditors issued “clean opinions on the basic financial statements” and noted that ‘‘all the information in that annual comprehensive financial report does rest with the city.’’ The audit also included a compliance review of coronavirus state and local fiscal recovery funds (CSLFRF); that compliance letter was returned with no issues, the auditor said.

Why it matters: the audit affirms that the city’s financial statements are fairly presented, but it also highlights operational weaknesses that could affect residents and future budgets—most notably a recurring reconciliation task for customer deposit and escrow accounts and a long‑standing deficit in the fiber fund that council members described as difficult to eliminate without transfers from other funds.

Auditor findings and recommendations were largely positive on core accounting controls but specific items drew attention. Heagle told council that two of 40…