Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit topic
No spam. Unsubscribe anytime.
Brainerd Public Utilities auditors issue unmodified opinion; commission approves audit
Summary
CliftonLarsonAllen presented an unmodified opinion on Brainerd Public Utilities’ financial statements, noting a roughly $2.2 million increase in net position year over year; the commission accepted the audit and asked staff follow-up questions about department reporting and purchase-power adjustments.
CliftonLarsonAllen delivered a clean audit of Brainerd Public Utilities and the commission voted to accept the results.
"So an unmodified opinion," said Mary Rei, the engagement principal for CliftonLarsonAllen, describing the highest level of assurance auditors can give on financial statements. The auditors also said there were no material corrected misstatements and no Minnesota legal-compliance findings.
The firm reported the utility recorded about a $2.2 million increase in net position for the year, driven largely by rate increases across electric, water and wastewater departments and higher usage. Eric Spendred, the audit manager, said the electric department saw a large purchase-power adjustment that significantly increased expenses but left the system with an overall positive net change. The auditors also noted changes required by GASB 101 affecting compensated-absence presentation.
Commissioners pressed staff for clarifications. One commissioner asked how internal interdepartmental charges—such as electric billed to wastewater—were shown. Auditors and staff replied that internal transactions are eliminated in consolidated reporting so department-level presentations remove those internal entries and that staff (Danny) could provide the pre-adjustment numbers.
The auditors outlined department-level results: the water department moved from a prior-year net loss to a small gain (the auditors provided the figures as a roughly $68,000 positive change this year versus about a $622,000 negative change the prior year); wastewater and electric both showed year-over-year gains with varying margin pressures. Auditors highlighted about $6.5 million in capital additions and noted cash and investments declined from the prior year largely due to bond repayment activity, leaving roughly $6 million on hand.
After questions, a commissioner moved to approve the audit presentation "as presented," and the commission carried the motion by voice vote.
The auditors recommended continued monitoring of department margins and annual rate assessments. The commission asked staff to supply additional detail on internal charge eliminations and the purchase-power adjustment for the electric department before the next meeting.
What’s next: Staff will provide the requested breakdowns and incorporate any clarifying notes required for the city council and financial filings.
