Council accepts 2025 audit; auditor flags pension-related qualification for fire relief association

Dean Birklin of Carlson CPAs and Advisors presented the 2025 audit to the Pelican Rapids City Council and explained the auditor's opinions and findings. He said an "unmodified opinion is the ... that's as good as it gets" for auditors, and that most of the city's opinion units received clean treatment.

Birklin identified a qualification to the city's governmental-activities opinion tied to the Fire Relief Association's lack of an actuarial valuation, which auditors treat under generally accepted accounting principles as requiring actuarial information for pension-type obligations. He said this finding is common among similar cities and reflects a cost–benefit decision by relief associations about whether to commission actuarial valuations.

The auditor also reported that the city's general fund balance met or exceeded recommended benchmarks and that enterprise funds (water, sewer, liquor store) were functioning as intended. He reviewed common internal-control items—preparation of financial statements, segregation of duties and audit adjustments—and delivered the governance letter. Birklin said he plans to retire; the council thanked him for his service. Council later moved, seconded and approved the 2025 audit by voice vote.