Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Finance Audit topic
No spam. Unsubscribe anytime.
West Bend audit returns clean opinion as general fund balance falls $2.6 million
Summary
City auditors issued a clean (unmodified) opinion on West Bend’s 2025 financial statements but reported a $2.6 million decrease in the general fund and noted a material weakness in internal control related to auditor assistance with financial statement preparation.
The City of West Bend received a clean audit opinion for its 2025 financial statements, Baker Tilly representative Andrea Jansen told the Finance Committee on June 15. "We were able to issue an unmodified opinion on the financial statements," Jansen said, describing that as "the highest level of assurance."
Jansen also briefed elected officials on the details beneath the headline number. The city reported a net loss of roughly $2.6 million in 2025, driven by lower‑than‑expected transfers in and intergovernmental revenues and higher general government expenditures, in part from elevated health claims. The audit shows an $8.9 million unassigned fund balance at year‑end, about 25.1% of 2026 budgeted general fund expenditures. "That is down slightly from the prior year," Jansen said, but still within the city's fund‑balance policy.
The auditors flagged one material weakness in internal control over financial reporting tied to the level of assistance the audit team provides in preparing the city's financial statements and related adjusting entries for utility work‑order close. "This does not necessarily need to be corrected," Jansen said, "but it does just need to be communicated for your awareness."
Committee members pressed for context on reserves and months‑on‑hand. Alderman Simon asked whether the reduction in months on hand (about eight months now versus higher past figures) was cause for concern; Jansen called the level "satisfactory" while outlining that reserves provide flexibility and borrowing remains an option for unexpected needs.
The presentation also reviewed debt: the city's general obligation debt totaled about $68.9 million at year‑end, roughly 28% of the state statutory limit tied to equalized value, and remains well within policy limits. The committee accepted the report and thanked city finance staff for their work assembling the records for the audit. The Finance Committee asked staff to track follow‑up items identified in the auditor’s communications and to report back on any corrective steps the administration decides to take.
