The city has successfully completed its annual audit, receiving an unmodified opinion from external auditors CLA, indicating that the financial statements accurately reflect the city's financial position as of December 31, 2023. Stuart Randall and John Troutman from CLA presented the audit findings, commending the city's finance department for their efforts in achieving this positive outcome.

During the presentation, the auditors highlighted the importance of understanding the city's internal controls and the unique risks associated with governmental accounting. They noted a significant deficiency in the preparation of the annual financial report, a common challenge among municipalities of similar size. However, they emphasized that there were no material weaknesses in internal controls, which is a positive indicator for the city's financial health.

The auditors also discussed upcoming changes in federal grant regulations, particularly regarding the city's recent federal infrastructure grants. They advised that the city may need to prepare for a single audit in the next couple of years to ensure compliance with federal guidelines.

In terms of financial highlights, the city's unassigned fund balance stands at approximately $6.08 million, which is close to the recommended 25% of annual expenditures. The auditors noted that maintaining reserves is crucial for the city's financial stability.

The presentation also addressed broader industry challenges, including labor shortages and the need for improved documentation of procedures to mitigate risks associated with employee turnover. The auditors stressed the importance of cross-training staff and maintaining robust internal controls across all departments.

Cybersecurity was another key topic, with the auditors urging continued investment in technology to protect against potential threats. They also mentioned the uncertainty surrounding state shared revenues and levy limits, which could impact the city's budget in the future.

Overall, the audit results reflect a stable financial position for the city, but the auditors cautioned that ongoing diligence in financial management and compliance will be essential as the city navigates emerging challenges in the governmental landscape.