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Auditor gives Alpine a clean opinion; recommends formal fund‑balance policy
Summary
Larson & Company reported an unmodified (clean) audit opinion on Alpine’s 2023 financial statements and found no material weaknesses; the auditor urged the council to adopt a formal fund‑balance policy (around 30%) to improve resiliency.
John Hatterley, partner with Larson & Company, told the Alpine City Council on Nov. 12 that the firm issued an unmodified (clean) opinion on the city’s financial statements and on required state compliance items. "Our opinion on the financial statements is an unmodified or an unqualified opinion," Hatterley said, adding that auditors found no material weaknesses or significant deficiencies in internal control.
Hatterley walked council members through required communications auditors must make to elected officials, including the firm’s fraud risk assessment, significant audit risks and the auditors’ responsibility to evaluate whether events or conditions raise substantial doubt about the city’s ability to continue as a going concern. He listed typical audit risks — improper revenue recognition, cash disbursements and management override of controls — and said those are standard areas of focus in government audits rather than findings specific to Alpine.
On reserves, Hatterley recommended that the council discuss a clear fund‑balance policy that balances solvency and flexibility. "What I would recommend is that you as a council discuss it with management and really have some sort of a policy that says every year we want to maintain around 30%," he said, noting state guidance caps some fund‑balance measures at 35% and sets a statutory minimum around 5% for solvency.
Council members praised staff for cooperation during a first‑year audit by Larson & Company and asked follow‑up questions about audit procedures and the distinction between fund statements and government‑wide financial statements. The council did not take formal action on the audit itself; the audit will be included in the city’s official financial filings and the city will consider the auditor’s recommended policy discussion with management in upcoming budget work sessions.
The auditor and staff emphasized that the unmodified opinion indicates the financial statements presented fairly in accordance with generally accepted accounting principles and that the audit identified no reportable control deficiencies.
