City administrator presents Waverly’s annual comprehensive financial report; auditors note recurring accounting finding

City Administrator James Brunner and finance staff presented the City of Waverly’s annual comprehensive financial report during the Feb. 17 council meeting.

Brunner summarized the audit’s management discussion and analysis (MD&A), noting the city received a clean opinion on its financial statements. He said the general fund closed stronger than budgeted — roughly $600,000 better than anticipated — and that unassigned general-fund days of reserve were improving.

Auditors flagged a recurring material‑weakness finding related to financial statement adjustments and year‑end recording of receivables, payables and capital asset additions. Brunner and Valerie (finance staff) said most local governments receive similar audit comments and described the issue as a common accounting adjustment item that auditors identify. They noted staff will continue internal control work to reduce future adjustments.

The presentation also covered recent GASB changes (including a change the city labeled "GASB 100") that altered which funds are reported as major and nonmajor and required additional disclosures; staff said GASB 101 and other updates may require further adjustments in coming years.

Why it matters: the report provides the city’s fiscal snapshot, supports bond-market confidence, and identifies accounting areas staff will monitor. Brunner urged councilmembers and the public to review the MD&A and statistical section for context on revenues, reserves and long-term obligations.

Next steps: The city will post the report online, follow auditor recommendations for internal controls, and address GASB-driven presentation changes in future audits.