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City accepts FY2023–24 audit; auditors issue clean opinion, note segregation‑of‑duties finding
Summary
External auditors issued an unmodified (clean) opinion on Pella’s FY2023–24 financial statements but reported one internal control finding (lack of segregation of accounting duties) and two legal‑compliance items; council accepted the audit.
The Pella City Council accepted the fiscal year 2023–24 audit after an external auditor delivered a presentation summarizing the audited financial statements and related reports.
Andy Rice of Burke KDB, the city's auditor, told the council the audit opinion is unmodified (a clean opinion). The audit included one internal control finding: a lack of segregation of accounting duties, which the auditor noted is common for municipalities of the city's size. The legal‑compliance portion of the audit identified two statutory matters: certain funds with deficit fund balances and an instance where expenditures exceeded budgeted amounts.
The auditor reviewed trends: general fund balance declined roughly $398,000 to just over $4 million at year end; property taxes remain the largest revenue source (about 53% of general fund revenues); and general fund revenues decreased about 1.4% (approximately $142,000) year over year. Enterprise funds showed mixed results — the electric fund had a surplus while wastewater and telecommunications experienced deficits — and the auditor highlighted unrestricted net positions and cash flow measures for capital planning.
The council asked questions about the internal control finding and other items; staff and the auditor provided context. The council voted to accept the audit.
