Coeur d'Alene officials report clean audit for fiscal 2024; staff flag fund balance details and investment disclosures

The Coeur d'Alene City Council on June 17 reviewed the city's fiscal year 2024 financial statements and heard that an independent auditor issued an unmodified opinion, commonly described as a clean audit.

City finance staff member Katie Ebner told the council Alpine Summit, the independent CPA firm that completed the audit, issued an unmodified opinion on the city's financial statements and on internal controls. "Our auditors have given an unmodified opinion, which is considered a clean opinion on our fiscal year '24 financials," Ebner said.

The audit shows the general fund ended FY24 with a fund balance of about $19,000,000 and an unassigned fund balance of roughly $12,000,000, equal to about 22% of general revenues. Ebner said that proportion meets the Government Finance Officers Association recommendation and provides about 75 to 80 days of operating coverage depending on whether the measure is based on revenues or expenditures. "The government finance officers association recommends a minimum of 60 days," she said.

Council members pressed staff for context on several items that caused year‑to‑year swings. Ebner said several sources were one‑time receipts, including $1,570,000 from ICRMP tied to a police department storage‑facility fire and recognition of ARPA revenues tied to project spending. She also explained an interfund loan and related repayments: the general fund had provided a loan related to an Ignite land purchase and the wastewater fund had separate loan activity that affected capital project balances.

Council member Dan Gookin questioned a large change in a line labeled "custodial credit risk," from about $500,000 the prior year to roughly $313,500,000 in the current statements. "And can you just explain what we're doing with that money? Why and why it's considered at risk?" he asked. Ebner said Idaho law limits allowable investments and that the city nevertheless seeks to ensure deposits are secured, and she offered to dig into the disclosure wording to provide better context in future reports.

Other audit highlights Ebner presented included a $830,000 increase in property tax revenue and an increase in general fund operating expenditures of about 12% ($6.16 million), driven in part by $2.6 million in public safety costs and $1.78 million in capital outlay related to ARPA projects. Ebner also detailed proprietary fund results: water fund operating revenue decreased by about $118,000 and operating costs rose roughly $324,000; wastewater operating revenue increased by roughly $640,000 while operating expenses rose about $731,000.

On compliance matters, Ebner told the council the federal single‑audit compliance report had no findings and the city was determined a low‑risk auditee. She said the auditors also provided an unmodified opinion on internal controls and that staff would follow up on questions about lease disclosures and the custodial credit change.

Council members asked for more detail during upcoming budget workshops, particularly about which increases are one‑time and which are ongoing and about how the water and wastewater rate plans affect future cash needs. Ebner said staff would bring more detail to budget hearings.

The council did not take formal action on the audit report at the meeting; Ebner stood for questions and council members thanked staff for the presentation.