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Auditor issues clean opinion on West Bend 2024 statements; sewer utility report approved
Summary
Baker Tilly issued an unmodified opinion on the City of West Bend’s 2024 financial statements, noted a new GASB 101 accounting standard and a material weakness related to auditors’ assistance preparing statements; the Board of Public Works approved the Sewer Utility’s 2024 compliance maintenance annual report.
Baker Tilly presented the results of the City of West Bend’s 2024 financial audit on June 16, telling the finance committee it issued an unmodified (clean) opinion on the city’s 2024 financial statements and flagged several required disclosures and follow-up items.
Andrea Jansen, principal with Baker Tilly, said auditors issued a clean opinion and noted the implementation of GASB Statement No. 101, which affected the city’s reporting of accrued benefits. "We were able to issue an unmodified opinion on the city's 2024 financial statements," Jansen said.
Jansen added the audit report will be followed by a single-audit focused on compliance and controls over federal and state grant spending; that single-audit is expected in September. The formal communication included a required disclosure that Baker Tilly reports a material weakness in internal control over financial reporting because the audit firm assisted the city in preparing the financial statements — a commonly reported condition for municipalities where auditors provide accounting assistance.
Key numbers and funds: the audit presentation showed total general-fund balance at just under $14 million at year end, including about $9.1 million unassigned. The general obligation debt outstanding remained well below the state statutory debt limit (5% of equalized value). The water utility’s rate of return was reported at about 3.88% for 2024, with anticipated rate adjustments approved in early 2025. The sewer utility reported operating revenue of about $5.1 million and net operating income near $481,000 for 2024.
Separately, the Board of Public Works considered and approved Resolution No. 13, accepting the Sewer Utility’s 2024 compliance maintenance annual report. Steve, a sewer utility representative, told the board the utility received an "A" in all sections of the report and no further response was required beyond acceptance. The board voted to approve the resolution.
Next steps: auditors will issue the single-audit reporting on federal grant compliance in September. City staff will continue to coordinate with auditors, and the city will integrate audit recommendations and communications into the 2026 budget process.
The audit presentation and the sewer utility report were delivered to committee members and accepted without substantive dissent.
