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Pelican Rapids accepts 2023 audit; auditors note one qualification for Fire Relief Association
Summary
Carlson CPA presented the city's 2023 audit showing generally healthy fund balances and clean opinions for most units; auditors qualified the report only because the Fire Relief Association has not obtained a full actuarial valuation required for consolidated reporting.
Dean Berkland of Carlson CPA & Advisors reviewed the city’s 2023 audit and told the Pelican Rapids City Council that most opinion units received an unmodified (clean) opinion but that the report included one qualification related to the Fire Relief Association. Berkland explained that under accounting standards, an actuarial valuation would be required for consolidated reporting of that relief fund; many similar cities decline that valuation because of cost implications.
Berkland summarized the financial statements, saying the city’s governmental and enterprise funds (water, sewer, liquor) appear to be in good condition, with fund balances that he described as “very adequate.” He highlighted standard internal-control findings common in municipal audits—auditors preparing financial statements and footnotes, segregation-of-duty observations and audit adjustments—but said these are routine for many jurisdictions.
Council members had an opportunity to ask questions about the audit process and the Fire Relief Association qualification. Berkland said a full actuarial valuation would reduce the qualification but likely would cost several thousand dollars annually; the council accepted the 2023 audit report.
