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City accepts 2025 audit showing stronger revenues and recommendations to adjust capital-outlay policy
Summary
Auditor Abdo presented a clean (unmodified) 2025 opinion; the report noted limited segregation of duties, material adjustments, and recommended raising the capital outlay threshold from $1,000 to $10,000. General fund revenues were $186,713 over budget and expenditures $315,250 under budget.
At the July 6 City Council meeting, Chad Guse of Abdo reported that Eagle Lake’s 2025 financial audit resulted in an unmodified (clean) opinion and that Abdo tested for legal compliance.
Guse identified findings including limited segregation of duties, preparation of financial statements by staff, material audit adjustments, and accounts receivable not properly reflected. He recommended the City increase the capital outlay threshold from $1,000 to $10,000 and offered Abdo’s assistance to set up capital project funds to support budgeting. Administrator Jennifer Bromeland told the council staff appreciated Abdo’s responsiveness and that the City’s policy target of maintaining at least 50% unassigned fund balance currently sits at about 60%.
The audit report also showed general fund revenues exceeded budget by $186,713 and expenditures were $315,250 under budget. Guse said taxes increased by approximately $200,000, attributed to higher valuation and housing stock. Abdo compared Eagle Lake favorably with other Class 4 cities under 10,000 in population. The presentation concluded with an offer for the auditor to attend a council budget work session if requested.
