City audit: ABDO gives Hibbing an unmodified opinion; one common finding on financial statement preparation

Bonnie Schwager, an audit partner with ABDO, told the Hibbing City Council on July 2 that the firm issued an unmodified opinion on the city's 2024 financial statements after completing fieldwork and state reporting.

"We were able to obtain all of our audit evidence," Schwager said, summarizing the independent auditor's report and noting that the audit was "very clean." She told councilors ABDO did not identify control deficiencies or compliance issues with Minnesota statutes, and federal program compliance testing raised no concerns.

Schwager noted a single significant finding commonly seen in municipalities Hibbing's size: the financial statements were prepared by an outside party (the auditors complete the statements for roughly 90% of the cities ABDO serves). She described this as a common, non‑novel finding rather than a material control weakness.

The presentation included financial highlights: the general fund balance increased slightly and stood at about 130% of the upcoming year’s budget requirement after transfers to capital; revenues exceeded budget largely due to stronger interest earnings and unbudgeted grants; roughly $3.0 million of the city's $6.4 million capital project balance is restricted by grant or donation terms; and enterprise funds (sewer, garbage, Memorial Building EDA funds) were examined for cash flow and reserve positions. Schwager and staff also reviewed OPEB liabilities and comparative key performance indicators sourced from the Office of the State Auditor.

Finance staff and councilors thanked the audit team and the finance department for preparing materials and facilitating a smooth process. The council had no additional questions during the presentation.