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Milroy audit receives unqualified opinion; council readies USDA loan closing and bond sales
Summary
Auditors told the Milroy City Council the 2022 financial statements present fairly and the city received an unqualified opinion; the council approved audit acceptance and proceeded with bond and loan steps tied to an upcoming USDA loan closing.
The Milroy City Council accepted an unqualified audit opinion for the city’s 2022 financial statements after Rebecca Towne of Kinner & Company presented the results at the Feb. 27 meeting. Towne said both federal and state audit work was required because of USDA loan requirements and that the financial statements "present fairly," a phrase Towne used to summarize the auditor’s opinion.
The audit acceptance cleared a contractual and procedural step ahead of a USDA loan closing the city scheduled for April 7, 2023; Clerk/Treasurer Betsy Snyder said she was working with bond counsel and USDA to finalize the closing date. Earlier in March the council had also adopted resolutions authorizing the sale of bonds (Resolution #8‑2023 authorizing sale of bonds in the amount of $1,976,500; Resolution #9‑2023 authorizing sale of bonds in the amount of $64,408) to support capital needs listed in the council packet.
Why it matters: An unqualified audit is the standard lenders and grantors expect before advancing funds; acceptance signaled to USDA and bond underwriters that Milroy’s financial statements meet generally accepted accounting standards and that the city can proceed with loan and bond closings. The council voted formally to approve the audit and directed clerk staff to continue closing steps with bond counsel and USDA.
What the council voted on: At the Feb. 27 meeting the council moved to approve the audit, and in March it adopted bond authorizing resolutions tied to the city’s financing plans. The meeting minutes record motions to approve the audit and the bond resolutions; where motions recorded a vote the minutes indicate approval (many votes were recorded as unanimous unless noted otherwise).
What’s next: The clerk reported the USDA loan closing was set for April 7, 2023, and the council has continued routine budget work on the 2024 levy and fees schedule at subsequent meetings.
