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Auditor gives Walnut Grove an unmodified FY2025 opinion, flags capital‑asset controls
Summary
An external presenter reported an unmodified audit opinion for Walnut Grove’s FY2025, highlighted $2.06 million in general fund cash and a $693,000 restatement tied to an unrecorded building, and recommended stronger internal controls over capital assets.
Kurt, the auditor presenting the city’s FY2025 financial statements, told the Walnut Grove City Council that the audit resulted in an unmodified opinion and that the general fund had cash and cash equivalents of $2,064,000 at June 30, 2025.
The auditor walked council members through the government‑wide and fund financials, saying total general fund assets were about $2,143,000 and that general fund revenues for the year totaled $1,229,000 against expenditures of $1,315,000. He said proceeds from a city asset sale of $620,000 contributed to a net increase in fund balance for FY2025, leaving an ending fund balance of about $1,904,000.
Kurt also described an adjustment tied to the implementation of a new accounting standard for compensated absences (GASB guidance) and a correction of an error: a building that had not been included on the city’s capital‑asset schedule was identified during 2025, prompting a restatement that reduced net position by approximately $693,000. "Our recommendation to the city is to strengthen internal controls regarding capital assets," he said, urging periodic reviews of the capital asset schedule to ensure all assets are captured.
Council members asked technical questions about differences between full accrual and modified accrual presentations and about a public works program that reported program revenues $324,000 less than related expenses. The auditor explained those differences arise from the two bases of accounting used in the statements and pointed to the detailed pages in the report that reconcile the presentations.
The auditor noted the city’s ARPA fund recorded intergovernmental revenue of roughly $506,753 and corresponding expenditures that used those funds during the year. He also reported enterprise fund balances for the water treatment plant (operating net position reported in the asset schedules and net investment in capital assets noted in the fund disclosures).
The council did not take formal action on audit findings during the meeting; the auditor’s recommendation to strengthen capital‑asset controls was acknowledged by staff and council as an item for follow‑up.
