East Bethel Council accepts clean 2023 audit, auditors report no state compliance exceptions

The East Bethel City Council unanimously accepted the city's 2023 audited financial statements Monday after auditors from ABDO presented their findings.

Brad Falcicek of ABDO told the council the firm issued an "unmodified or clean opinion" on the city's 2023 financial statements and that the Minnesota legal compliance checklist revealed no reportable noncompliance. Alex, an ABDO staff presenter, said the city's general fund balance rose in 2023 largely because revenues exceeded budget, citing $515,000 in public safety aid and lower-than-budgeted expenditures including an unfilled planning and zoning position.

Council members questioned the population base used for per-capita comparisons and asked about a line item described as a lease receivable. ABOD's presenters explained the lease receivable represents a long-term tenant lease for space on a communications tower and confirmed paper copies of the presentation were available upon request.

Mayor (unnamed) moved to adopt resolution 2024-31 accepting the audit; the motion was seconded and carried by voice vote with no recorded opposition. City staff said most funds are in good shape, though some capital project funds show temporary deficits until state aid arrives.

The council's acceptance means the city will file the audited financial statements as presented and proceed with plans identified in the report, including continuing to monitor capital projects and debt service funded by levies and debt service funds.

The council thanked the auditor and city finance staff for the presentation; no further action was required at the meeting.