Baker Tilly gives Portage City a clean 2024 audit; flags fund balance, utility pressures

Auditors from Baker Tilly told Portage City officials that the city's 2024 financial statements earned an unmodified opinion and that the audit produced two required deliverables: the financial statements and a reporting-and-insights document.

Leah Gaffney, manager with Baker Tilly, said the auditors '2issued an unmodified opinion,'2 noting the opinion is similar to last year and indicates the financial statements include the disclosures and information required under applicable standards.

The auditors also told the council that a change in accounting standards required a recalculation of compensated absences (accrued sick and vacation). Gaffney said the change increased the citywide liability related to compensated absences by about $200,000; she said that increase does not materially affect the general fund's spendable balances but appears on the government-wide statements.

Why it matters: The presentation summarized the city's operating results, fund balances, debt capacity and utility finances, highlighting areas that could affect future budgets and borrowing.

Audit findings and internal controls

Baker Tilly reported no new internal-control deficiencies. The audit document includes a routine recommendation regarding the financial-statement close process; Gaffney said that comment commonly appears in most clients' reports because auditors assist with financial-statement preparation. The firm's other…