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Audit shows clean opinion for Green Isle but flags limited segregation of duties and a small water‑fund deficit
Summary
Auditor Carlson SV delivered a clean opinion and no compliance findings; the report noted a limited segregation of duties and recommended the city develop a plan to address a roughly $40,000 water‑fund shortfall, while council approved audit‑related transfers (Resolution 2026‑11).
Carlson SV auditors presented the City of Green Isle’s 2025 financial audit to the council and issued a clean (unmodified) opinion on the city’s financial statements.
The firm’s lead told the council the auditors found the city’s statements to be fairly stated and highlighted strong cash reserves in the governmental and enterprise funds. “We have issued the city an unmodified audit opinion,” the auditor said, noting no compliance exceptions across the seven state compliance categories.
The audit report included one internal‑control comment: limited segregation of duties because the clerk/treasurer holds multiple accounting functions. Auditors said this is common in small municipalities and recommended heightened oversight and regular inquiries of unfamiliar items.
On operational finances, the auditors flagged the water fund’s multi‑year cash deficit. After an interfund accounting adjustment (an interfund loan from sewer to water used for reporting), the net shortfall prior to that adjustment was explained to be about $43,485. The auditors recommended the council consider a multi‑year rate plan to restore cash flow, such as staged rate increases and a five‑year plan to reach self‑sustaining status.
As part of audit close‑out, council approved Resolution 2026‑11 to enact four transfers (debt service true‑up, general→fire adjustment, and two fund closures) totaling $77,844.39.
Council members asked staff to include water‑fund options in upcoming budget discussions and to coordinate with the city’s accounting firm for rate modeling.
