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Auditor gives Brookings clean opinion on 2024 financial statements; no findings reported
Summary
Independent auditors presented the comprehensive annual financial report for fiscal 2024 and issued a clean (unmodified) opinion with no findings for the city, BMU or BHS. Auditors and finance staff highlighted implementation of a new GASB standard and strong liquidity and reserves.
An independent auditor presented the City of Brookings' comprehensive annual financial report (ACFR) for fiscal year 2024 and issued a clean, unmodified opinion, reporting no findings in internal controls or federal-program compliance.
Brian Stavanger, presenting for the audit firm on behalf of Mike Bailey, told the council the audit obtained "reasonable assurance" the financial statements are free of material misstatement and that auditors found no findings in the financial statement audit or in the single‑audit review of major federal programs (ARPA). He said the finance team implemented a recently adopted Governmental Accounting Standards Board (GASB) standard that materially affected reporting and commended staff for accurate and timely implementation.
Stavanger summarized key financial indicators: the city's cash and investments (excluding Brookings Municipal Utilities and Brookings Health System) were "just under $70,000,000" at year end; the unassigned general fund balance was just over $15,000,000; and the liquidity ratio has consistently ranged between roughly 4 and 6 in recent years, well above typical municipal minimums. He said those reserves were accumulated intentionally to finance upcoming projects, including a public safety building, without issuing as much debt in a high‑interest environment.
Finance Director Ashley Wrench answered council questions about the audit firm's independence and about classification changes. Wrench said the audit firm completes an annual independence survey and that some 2024 public‑works expenditures were reclassified to capital outlay, in part because ARPA funds flowed to community partners and were spent in 2024.
Council members thanked the finance team for the audit and noted the city's conservative fiscal policies. Deputy mayor Nick Wendell and others described reserves and budgeting policies adopted in prior years as a key reason the city can use cash for large capital projects and avoid heavier borrowing.
No formal action was required; the presentation and the auditors' unmodified opinion conclude the audit process for the city for FY2024.
