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Council accepts 2024 audit showing unmodified opinion; two significant internal control deficiencies noted
Summary
Auditors presented a clean (unmodified) 2024 opinion and summarized fund balances, enterprise fund results and two significant deficiencies (the city did not prepare financial statements and lack of segregation of duties); the council approved the audit.
An auditor presented the city’s 2024 audit and the council approved the audited financial statements after a brief review.
The presenter said the independent auditor issued an unmodified (clean) opinion, reporting that the city’s financial statements "present fairly in all material respects" on the cash basis used by small cities in the state. The audit showed the general fund’s unassigned fund balance was about 134.9% of the 2025 budget and that the city had a positive budget variance in receipts versus budget for 2024 driven largely by intergovernmental revenues and higher interest receipts.
The auditor also noted two significant deficiencies in internal control: the city did not prepare its own financial statements (the auditors prepared them) and there was a lack of segregation of duties in accounting operations. The audit included standard explanatory schedules for enterprise funds; the water, sewer and storm funds showed mixed results but overall a positive net position in combined enterprise assets.
A council member moved to approve the audited financial report as presented; the motion was seconded and carried.
Council asked staff to follow the auditor’s recommendations on controls and to work toward improved segregation of duties and preparation of financial statements in future periods.
