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Mankato receives clean 2024 audit; finance staff report reserves, one isolated control lapse
Summary
External auditors issued an unmodified (clean) opinion for the City of Mankato’s 2024 financial statements, auditors and staff told the council July 14. The report found no instances of noncompliance for tested federal programs, noted the city met its fund balance policy, and identified one staff control lapse that the city is reviewing.
The City of Mankato received an unmodified — or "clean" — opinion on its 2024 financial statements, Abby Schmidt, a manager with auditing firm ABDO, told the City Council on July 14.
Schmidt said auditors also performed single-audit testing because the city expended more than $750,000 in federal funds and that the work included American Rescue Plan Act (ARPA) and FEMA programs. "We issued an unmodified or clean opinion again for 2024," Schmidt said. "We did not have any instances of noncompliance or issues with internal controls in either of those programs that we tested."
The clean opinion matters because it affirms that the city’s financial statements can be relied upon by users, including bond raters and grantors. Schmidt and council members said the city is meeting the fund balance policy set by council — a target reserve of 40% to 55% of next year’s budgeted expenditures — and that the city’s position improved in 2024.
Key findings and figures
- Fund balance and reserves: Auditors reported the city is “right in the middle” of its 40%–55% fund balance policy. Council members noted that steady reserves support the…
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