Council accepts FY2025 financial report after auditors report restatement and two control findings

City auditors from Redpath & Company told the Roseville City Council on May 11 that they were issuing a clean, unmodified opinion on the city’s FY2025 financial statements but had reported two internal control findings and one legal compliance finding. Auditor Rebecca Peterson said the most significant issue was a large invoice (in excess of $1 million in aggregate) related to a construction/contract payment that was incurred earlier but was identified and paid in 2026; the timing required adjustment to prior‑year balances for affected funds.

Peterson described two reportable findings: (1) internal controls over disbursements produced a number of small errors (e.g., an unauthorized large credit‑card transaction and insufficient supporting documentation) that staff has begun to address, and (2) a financial statement correction tied to the late‑identified invoice. The late invoice also produced a legal compliance finding related to prompt‑payment statutes. The auditors said they found no evidence of cash loss and noted the city has not lost funds.

Council members asked whether the Office of the State Auditor would take additional action; the auditor said routine legal compliance findings are common and typically result in corrective recommendations unless pervasive problems or evidence of fraud exist. Council also asked whether the correction would affect resident utility rates; auditors and the finance director explained rate decisions rely on long‑range capital and cash‑flow planning, so the invoice timing did not change recommended 2025 rate actions. Council voted unanimously to accept the comprehensive financial report; members complimented staff for responsiveness and noted ongoing policy and procedure work to prevent repeat issues.