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Isanti Council accepts 2025 audit after auditors report unmodified opinion
Summary
The Isanti City Council accepted the 2025 financial report after auditors from Abdo issued an unmodified opinion, noted two internal-control findings and recorded a material adjustment to add city-owned land to the books; council vote was 5-0.
The Isanti City Council on April 21 accepted the city’s 2025 annual financial report after hearing a presentation from audit manager Kelsey Larson of Abdo.
Larson told the council the auditors issued an unmodified opinion under GAAP, meaning the financial statements were presented fairly. She said auditors found no instances of statutory non-compliance but reported two internal-control items and a material audit adjustment to record land the city and its Economic Development Authority own that had not been on the books.
“We were able to issue an unmodified opinion under GAP this year stating that your financial statements are presented fairly,” Kelsey Larson said during the presentation.
Larson explained routine audit procedures — bank confirmations, county confirmations and sampling of invoices and journal entries — and noted the two internal-control items: the city’s financial statements were prepared by the auditors (a common cost-versus-benefit situation for smaller cities) and a material restatement to record previously unrecorded land holdings. Larson described fund-balance metrics and highlighted a roughly $83,000 increase in the general fund for 2025 after revenues came in higher than budgeted.
Council members asked clarifying questions about fund balance, enterprise fund reserves and the liquor-store transfer that helps reduce the levy. Councilmember(s) praised staff and the auditors for thorough work and accepted the report by motion; the vote carried 5-0.
The council’s formal acceptance triggers the usual closeout steps and any follow-up action on the audit’s internal-control recommendations. Staff said they will bring any recommended administrative follow-ups back to council as needed.
