Saint Peter Council accepts 2024 financial statements, auditor reports internal control findings

The Saint Peter City Council voted Aug. 25 to accept the city’s 2024 financial statements and the independent auditor’s report after a presentation from Jim Eichten of LV Carlson.

Eichten told the council he issued a clean (unmodified) opinion on the financial statements for the year ended Dec. 31, 2024, but reported three findings in his management report: recurring financial‑statement adjustments that should be caught by internal controls, segregation‑of‑duties weaknesses caused by limited staff capacity, and a collateral shortfall identified in June 2024 at a bank that was corrected by year‑end. “Anytime an auditor … has to make adjustments that staff did not identify, it is considered an adjustment to the system,” Eichten said, describing that type of item as a weakness in internal control.

Eichten reviewed key figures from the financials: total governmental fund balances rose by about $5.0 million (largely unspent bond proceeds), the general fund increased by roughly $450,000, contributed capital to enterprise funds totaled about $3.1 million, and the city’s overall net position grew by about $2.3 million. He also noted enterprise‑fund performance variations: the electric fund was steady but slightly below a recommended equity target, and the water fund’s revenues declined (about $300,000) after a wet summer reduced consumption.

Council members asked for additional context on the city’s debt metrics, comparisons to other cities and the new finance director’s role in implementing corrective actions. Eichten said staff and his team are already working on remedies and that the city’s new finance director has relevant experience to help eliminate repeat findings.

The council approved a resolution accepting the statements and the auditor’s report by roll call vote.