Eden Prairie council accepts 2024 financial audit showing unmodified opinion and modest fund balance increase

The Eden Prairie City Council voted unanimously on May 6 to accept the city’s 2024 Annual Comprehensive Financial Report and the independent audit performed by KDV. The auditors issued an unmodified opinion on the city’s financial statements and reported one routine internal control finding.

Carolyn Stutzman, a partner with auditing firm KDV, told the council the unmodified opinion is the highest level of assurance auditors can provide: “We do believe those financial statements are fairly stated in all material respects as of 12/31/2024,” she said. Stutzman said the audit included consideration of internal controls and compliance with Minnesota statutes used as part of the state legal compliance review.

The audit presentation said the city’s general fund revenues increased by nearly $4,000,000 in 2024 and expenditures rose by about $3,300,000, driven largely by wages and benefits in police, fire and parks and recreation and by increased charges for services. The report showed unassigned general fund balance increased by roughly $105,000 for the year, reversing an assumed drawdown the budget had anticipated.

Stutzman said the city received no compliance findings related to Minnesota statutes and that the single internal control issue reflected an audit adjustment rather than a control breakdown. City staff noted that the full CAFR and related materials are posted on the city’s website for public review.

During council discussion, staff explained that much of the city’s fund balance functions as working capital until property tax settlements are received in May and November. The audit also reviewed tax capacity, showing tax capacity increased about 7.3% while the levy rose about 5%, producing a decrease in the city’s tax capacity rate for 2024.

Council Member Mark Freiberg moved to accept the 2024 Annual Comprehensive Financial Report; the motion passed on a unanimous roll call vote.