Park Rapids council accepts 2024 audit; auditors flag material weakness, recommend controls

Tracee Bruggeman of BradyMartz & Associates presented the City of Park Rapids’ final 2024 audit and the council voted to accept the report at its July 22 meeting.

Bruggeman said the firm’s opinion was that the financial statements "present fairly in all material respects." She also reported two audit findings: one procedural finding that the city elected to have auditors assist in preparing the financial statements, and a second finding involving proposed material audit adjustments. The firm classified the second as a material weakness and recommended that the city establish an internal‑control policy documenting review of financial statements and the disclosure checklist and perform reconciliations of balance‑sheet accounts before audit fieldwork begins.

The audit presentation included operational observations: the auditors reported that the city’s 2024 water loss was 30 percent and recommended regular monitoring of water loss and unbilled water; they listed fund and proprietary balances (for example, a reported general fund balance of $4,065,172 and a long‑term debt balance of $10,009,133 as of Dec. 31, 2024). Bruggeman also said the auditors had no findings for Minnesota legal compliance.

City Administrator Angel Weasner thanked staff for their assistance during the audit. After the presentation the council approved Resolution #2025‑122 accepting the final 2024 audit report by a unanimous vote (mover: Liz Stone; second: Jeremy Engholm).

What happens next: the auditors recommended developing written internal controls and pre‑audit reconciliations; the council’s acceptance places the report on the record but does not itself implement those recommendations. City staff and council will decide next steps for responding to the auditors’ recommendations.