Missouri Valley audit shows clean opinion but flags reporting and transfer documentation

Troyer & Associates presented the City of Missouri Valley's audit for the year ended June 30, 2025, and told the council it issued a clean independent auditor's opinion. "In our opinion, the financial statements are fairly stated in all material respects in accordance with the cash basis of accounting," auditor Kelsey Peterson said.

The audit shows governmental activities grew about $322,000 during the year, the general fund increased roughly $37,000 and enterprise funds were mixed: water activity rose about $520,000 while sewer fell primarily because of a transfer. Peterson told the council the city posted about $2.6 million in governmental long-term debt and roughly $800,000 in water-related debt, and noted capital projects and bond proceeds had sizable activity during the year.

Why it matters: the clean opinion signals the financial statements are free of material misstatement, but the audit also identified statutory or procedural shortfalls that the city must address. Peterson summarized three statutory-reporting items: council minutes for a November 12, 2024 closed session did not document a roll-call vote to end closed session as required by state law; the city did not publish annual gross salaries (a statutory requirement) in a timely fashion though the auditor said the city has since published the figures; and a fund transfer of $160,000 from a capital project fund (plus $58,000 from the general fund) to debt service lacked a formal transfer resolution.

Peterson recommended routine monthly revenue-and-expenditure reports and that the council ensure budget amendments are recorded when council actions change planned receipts or disbursements. "We would just recommend that it is amended sufficiently before disbursements are authorized," she said.

Council reaction was largely procedural: members asked for clarity on schedules and suggested staff provide more frequent reporting so elected officials can spot and approve necessary budget amendments in a timely manner. One councilor asked how Missouri Valley's debt compares with similar-sized cities; Peterson said comparative data are available from other audits on the state auditor's website but the audit report itself does not include those peer comparisons.

What happens next: council directed staff to provide the requested monthly budget-versus-actual reports and to follow up on the code-required documentation steps identified in the audit. The report's findings do not change the auditor's clean opinion, but they do create steps the city must take to comply fully with statutory reporting requirements.