Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit topic
No spam. Unsubscribe anytime.
Auditors report three material control weaknesses; Kenyon general fund at about 17% reserve
Summary
Dustin Hopats of Bergen KTV presented the city's annual audit, reporting three material internal‑control findings, one material audit adjustment and a Minnesota legal‑compliance note; auditors recommended monitoring reserves after a general‑fund balance near $383,000 (≈17% of expenditures).
Dustin Hopats, director with Bergen KTV, presented the city's annual audit at a Kenyon meeting and reported three internal‑control findings that the auditors classified as material weaknesses and one material audit adjustment needed to fairly present the financial statements.
Hopats said the auditors issued an unmodified opinion on the financial statements — "what you pay us for, essentially" — but under government auditing standards they also flagged controls and compliance matters. "We did have three internal control findings at a material weakness level," he said, citing: a lack of segregation of accounting duties (exacerbated by staff turnover and small staffing), insufficient supporting documentation for some disbursements and journal entries, and one material audit adjustment.
Hopats also described a Minnesota legal‑compliance item: the city received two rounds of fire state aid but remitted only one to the fire relief in a timely way, which the auditors flagged as immaterial noncompliance that must be reported.
On finances, Hopats said general fund revenues rose by about $100,000 to roughly $1,800,000 year over year and total expenditures increased by about $23,000 (≈1%). He reported an unrestricted general‑fund balance of about $383,000, which is about 17% of expenditures — well below the city's stated 40% reserve goal — and recommended monitoring to stay in compliance with the city's fund‑balance policy.
Hopats reviewed enterprise funds as well: the sewer fund has covered depreciation and operating expenses in recent years with an unrestricted net position reported around $1,800,000; the water fund is generally covering operating costs; the electric and liquor funds have had operating losses (the liquor fund's unrestricted position is declining), which Hopats said warrants continued review. He noted one material audit adjustment was recorded this year.
Hopats invited follow‑up questions and offered his contact information, and the meeting record shows no formal vote or directive on the audit presentation. "If there's ever anything I can do to make your lives or jobs easier, I'm absolutely here for it," he said.
