McGregor audit: Brooks Watson issues unmodified opinion on fiscal 2025 ACFR
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Summary
Auditors presented the City of McGregor's Annual Comprehensive Financial Report for the fiscal year ended Sept. 30, 2025, and issued an unmodified ("clean") opinion; council voted to accept the report following a brief presentation and no substantive questions.
Auditors from Brooks Watson & Company presented the City of McGregor's Annual Comprehensive Financial Report (ACFR) for the fiscal year ended Sept. 30, 2025, and told the council their firm issued an unmodified ("clean") opinion.
The presenter described the audit process — assessment, a risk-based approach to testing, compliance review of grants and Public Funds Investment Act requirements, field work and reporting — and provided a walk-through of report components including management's discussion and analysis, financial statements and notes, and the statistical section. "The city did receive a clean, unmodified opinion," the auditor said during the presentation.
Key highlights cited by the auditor included a general fund balance increase of $764,000 year over year (largely driven by transfers in), a debt service fund increase of $147,000, and a $2.8 million decrease in capital project fund balance tied to project spending. Combined nonmajor funds showed an overall decrease of approximately $1.3 million, attributable to special revenue activity being used as required. On proprietary funds, the utility fund showed a net operating income of about $1.3 million; the airport reported an operating loss of roughly $14,000 driven by depreciation but a positive cash flow after nonoperating items.
Auditors also noted the communication letters that accompany the report. The "communication with those charged with governance" letter confirmed the audit was conducted in compliance with ethics and independence requirements and that management corrected identified audit adjustments; the internal-controls letter identified a couple of items for management consideration. The presenter thanked Lee and finance staff for their cooperation in providing materials and responding to audit requests.
Following the presentation, the council moved and seconded approval of the ACFR as prepared by Brooks Watson & Company; the motion carried on a voice vote. The council had no substantive follow-up questions during the meeting.
The council accepted the report; the auditor offered to respond to any later questions via the contact information provided.
