City audit receives clean opinion despite recurring control weaknesses

An auditor from Clifton Larson Allen told the Cross Lake City Council on May 6 that the city’s financial statements received an unmodified opinion, and the council voted to accept the audit.

Mary of Clifton Larson Allen presented the audit findings and said, “So overall, an unmodified opinion on the financial statements.” She told the council that revenues rose while expenditures and capital outlay drove a roughly $1,000,000 decline in the general fund balance this year and that the city carried about $4.5 million in total debt. She also reported the sewer fund had a net operating loss of about $13,000 for the year attributable to higher biosolids and spray‑foam charges.

Mary noted three recurring material weaknesses—segregation of duties, drafting the financial statements, and material audit adjustments—that the auditors continue to see and said staff and auditors are working to reduce year‑end adjustments. The firm showed the council that capital outlay for the year was roughly $2.3 million and that cash on hand was about $7.7 million.

After brief questions from council members about cash‑on‑hand and the sewer fund trend, a council member moved to accept the audit and the motion passed by voice vote.

The acceptance means the audit and related letters will be filed and the city will proceed with the state reporting deadlines cited by the auditor.