City of Morris receives unmodified audit opinion; council approves 2024 financial statements

Courtney Maslowski, senior audit associate with Eide Bailly’s Fargo office, presented the city’s 2024 financial audit and said the firm issued an unmodified (clean) opinion on the financial statements prepared in accordance with U.S. generally accepted accounting principles.

Maslowski said the city expended approximately $1,200,000 in federal awards in 2024, exceeding the single-audit threshold of $750,000; the audit therefore included a single-audit compliance review and resulted in an unmodified compliance opinion for the major federal award program, with the airport improvement program tested as the major program this year.

Key financial figures and findings included: approximately $343,000 in the capital projects fund; a net change in fund balance for the general fund of $523,000; water fund net change of about $578,000 and sewer net change of about $202,000; and a municipal liquor fund gross profit near $700,000. The auditor noted recurring findings: preparation of financial statements by the auditor (material journal entries proposed by the firm), inventory valuation errors in the liquor fund that were adjusted as of Dec. 31, and segregation-of-duties weaknesses in small‑city operations, particularly in the library fund. Maslowski also noted a Minnesota legal‑compliance finding: the city did not obtain contractor performance and payment bonds for the transit garage project, which state law requires for contracts over $175,000.

Following the presentation, Council moved and approved a resolution accepting and approving the 2024 annual financial statements by roll call vote.

Council members thanked city staff for the work on closing the year’s books, and the mayor asked staff to continue efforts on internal controls and communication of key financial metrics to the public.