City auditors issue unmodified opinion on Waterloos 2024 statements, flag one material weakness and deficit funds

Auditors from Bergen KDV told the Waterloo City Council at a work session that they issued an unmodified opinion on the city's 2024 financial statements but reported one material weakness and a separate finding under the Iowa legal-compliance checklist related to deficit fund balances.

The unmodified opinion means the auditors concluded the financial statements "are fairly presented in all material respects," Dustin Elpats, senior audit manager with Bergen KDV, said. Elpats told council members the audit also identified "one internal control finding at the material weakness level" tied to required material audit adjustments the auditors made when they received the city's initial financial information.

The finding does not alter the audit opinion but is a required disclosure, Elpats said. He also described the single-audit work the firm performed because the city…