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Eagan council accepts 2024 annual comprehensive financial report with clean audit
Summary
Auditor Redpath and Company delivered an unmodified (clean) opinion on Eagan's 2024 financial statements; the council accepted the annual comprehensive financial report.
The Eagan City Council received and accepted the city's 2024 annual comprehensive financial report, including an unmodified audit opinion from Redpath and Company, at its June 17 meeting.
Rebecca Peterson of Redpath summarized the audit, reporting a clean or "unmodified" opinion on the city's financial statements for the year ended Dec. 31, 2024. She told the council auditors found no internal control findings, no instances of Minnesota legal noncompliance, and no federal program noncompliance or questioned costs for the federal funds tested.
Peterson described several accounting estimates disclosed in the statements, including the present value of a lease receivable, construction-in-progress estimates for county projects, the city's self-insurance reserves, an OPEB asset of about $17 million (restricted for specific uses), and the city's allocated share of the PERA net pension liability, which the auditor reported at roughly $21 million and noted fluctuates with actuarial assumptions and market conditions.
Peterson highlighted that the city's general fund increased by roughly $4 million in 2024, driven by stronger-than-expected interest earnings and cost savings in public safety. Capital project funds showed a large increase related to debt issuance for capital projects; those funds are restricted for those projects and will be spent down.
Council members asked clarifying questions about whether historical charts were presented in constant dollars (Peterson said figures are in nominal dollars as reported), federal compliance testing (the auditor said testing focuses on relevant federal awards and the number of compliance areas audited has been reduced to emphasize higher-risk areas), and general fund targets. Finance staff noted the council will return to recommended uses of fund balance during the August workshop.
Councilor Bakken moved to receive and accept the 2024 annual comprehensive financial report; the motion was seconded and adopted by voice vote.
The auditor also noted the city's financial statements were submitted for the Government Finance Officers Association award in excellence in financial reporting for a second consecutive year and staff expected to receive the award again.
