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Sioux City auditors give clean opinion on 2024 finances; one control finding noted
Summary
Auditors delivered an unmodified (clean) opinion on Sioux City's FY2024 financial statements, noting one internal-control finding and mixed results across enterprise funds, while council reviewed implications for budget planning.
Sioux City officials received the city's FY2024 comprehensive financial report and an unmodified audit opinion from the independent auditors during the council meeting.
"Happy to report that we're continuing to provide a clean or an unmodified opinion," auditor Andrew Grice said, noting the opinion means the financial statements are "fairly stated in all material respects." Randy Corona, interim accounting and reporting manager, introduced the report and thanked staff and auditors for five months of work.
The auditors reported one internal-control finding related to proposed adjustments from a prior period. Grice told the council the audit tested four major federal programs and found no federal compliance issues. The city's general fund balance rose to about $27,500,000 in 2024, an increase of roughly 17.5% year over year, and remained in compliance with the council's fund-balance policy.
Enterprise funds showed mixed results for 2024: Grice reported a water-fund surplus of about $4,500,000 and a sewer-fund surplus of about $13,800,000; the solid-waste fund had a deficit of about $232,000; the airport fund reported a recurring deficit that left an ending unrestricted net position deficit of about $2,600,000. Grice recommended that the council continue close review of the airport fund and other enterprise activities that should be funded through user charges.
Grice also highlighted revenue changes driven by a reallocation of portions of the property tax levy and higher investment income, which increased the "use of money and property" category to about $6,600,000 in 2024. The overall tax levy rose from about $52.7 million to $54.3 million; the tax rate moved from 15.42 to about 15.765 in the period presented.
Council members asked whether reported increases were due to property taxes alone; Grice and the mayor responded that the net increase in revenues was not solely property tax and that expenditure growth exceeded revenue increases.
The city will incorporate the audit's findings and the auditors' recommendations into upcoming budget work and capital planning discussions.
