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Proctor audit finds unmodified opinion; council accepts restated 2024 financials
Summary
City auditors reported an unmodified (clean) opinion on Proctor's 2024 financial statements, noted a GASB change to compensated‑absence reporting that required a prior‑year restatement, and listed two recurring findings; the council voted to accept the audit.
The Proctor City Council accepted the 2024 audit at its Aug. 18 meeting after an external auditor reported an unmodified opinion on the city's financial statements.
Auditor Zach Sharp of Wiffley told the council the audit contains a clean (unmodified) opinion and that a previously omitted pension asset was added after receiving state plan information, which required restating last year's balances. "This year we only have an unmodified opinion which is essentially a clean bill of health," Sharp said during the presentation. He also explained that a new government accounting standard that expanded what counts as compensated absences increased reported liabilities and prompted an adjustment of about $178,000 to prior‑year balances.
Why it matters: An unmodified opinion means the auditors found the financial statements to be materially correct; the restatement and GASB reporting change affect how certain long‑term obligations and employee leave are displayed, but do not reflect new operational losses.
Key figures and findings: Sharp summarized the city's audited totals, saying total net position is about $28 million. At the fund level, the general fund had roughly $5.4 million in fund balance with approximately $2.17 million unassigned. On a budget‑to‑actual basis the city reported about $4.2 million in general‑fund revenues and roughly $4.3 million in expenditures, producing a small net deficit in operations that was offset partly by other financing sources. The audit report also lists two recurring findings: (1) financial statement preparation (a technical deficiency common at governments of this size) and (2) material audit adjustments made during fieldwork. Sharp said two compliance findings from the prior year were corrected and that the remaining findings are common and technical in nature.
Council action: Councilor Johnson moved to accept the audit, and Councilor Benson seconded. The motion passed by voice vote.
What comes next: Sharp and city staff encouraged council members to contact Finance Director Brunfeld or auditor staff with follow‑up questions after members had time to review the full report. The auditor also offered to provide additional detail on any note or schedule staff or councilors request.
Sources: Presentation by auditor Zach Sharp and council discussion during the Aug. 18, 2025 Proctor City Council meeting.
