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Kasson audit returns ‘clean’ opinion; council hears reserves, transfers and debt levels
Summary
An independent auditor told the Kasson City Council the 2024 financial statements received an unmodified (clean) opinion; the council heard details about reserves, a $950,000 transfer to create a capital projects fund, and $22.7 million in outstanding bonds.
Kasson City officials heard on Monday that the city’s 2024 financial statements received an unmodified — or clean — audit opinion from the independent auditor.
"We're issuing an unmodified opinion. It's a clean opinion," said Kaylee Lent of Conresnic, the auditing firm that conducted the review. Lent outlined three management comments related to segregation of duties, preparation of financial statements and a small number of audit adjustments, but said the statements themselves were fairly presented under generally accepted accounting principles.
The audit presentation included several fiscal markers of the city's position. Property tax collections totaled $4,543,000 on a levy of $4,492,000, the unassigned general fund balance stood at about $3.6 million (roughly 76% of next year’s budgeted expenditures), and the council approved a purposeful transfer of $950,000 to seed a new general capital projects fund. Auditors reported $22.7 million in bonds outstanding at the city level.
Lent also summarized fund-level results: the water fund reported operating income and covered depreciation, the wastewater fund continued to build reserves and reported roughly $6.1 million in cash, and the electric fund maintained reserves near $7.5 million while beginning significant solar-related capital work.
City administration told the council it will return with a resolution to formally accept the audit at the next council meeting. The audit presentation concluded with an offer from staff and auditors to brief council members individually on specific items in the management letter.
Why it matters: an unmodified audit opinion signals that the city’s financial statements present a fair view of fiscal activity, but management comments and the transfer to a new capital fund highlight areas the council may want to monitor as capital projects move forward.
