Auditor gives City of Oconomowoc a clean opinion; highlights reserve strength and a material‑weakness disclosure

Paul France, the audit partner/principal, told council the city's annual comprehensive financial report received an unmodified opinion (commonly called a "clean" opinion). He reported the general fund ended 2025 with just over $14.1 million in fund balance and an unassigned balance of about $10,458,000, representing roughly 49% of general fund expenditures (compared with a policy target cited near 25%). France said utilities were in a strong cash position, operating expenses were covered by rates, and long‑term debt usage aligned with peers.

France also noted a disclosure required by auditing standards identifying a material weakness in the financial close process tied to the decision to outsource ACFR preparation during turnover in finance staff. He described the situation as managed and not indicative of misstatements, and said Baker Tilly will work with city staff to build documentation and capacity going forward. "We received nothing but cooperation from management in navigating through the audit process," France said, adding that the audit yielded no unexpected findings that would change the opinion.