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<br /> <br />STAFF REPORT <br /> <br />DATE: July 1, 2025 <br /> REGULAR <br /> <br /> <br />AGENDA ITEM: Presentation & Acceptance of the 2024 Annual Comprehensive Financial <br />Report (ACFR) <br />FROM: Clarissa Hadler, Finance Director <br /> CORE STRATEGIES: <br />☐ Vibrant, inclusive, connected community ☒ Efficient, reliable, innovative services <br />☒ Responsive, transparent, adaptive governance ☒ Balanced Finances now and future <br />☐ Managed Growth ☐ Resilient Infrastructure <br /> <br />BACKGROUND: <br />Annually, the City engages the services of an independent outside audit firm to audit and assist with the <br />preparation of the financial statements. The auditors are asked to assure that the financial statements are <br />free from material misstatement in accordance with U.S. Generally Accepted Accounting Principles <br />(GAAP). The firm also performs testing and makes inquiries to help ensure that proper internal controls <br />are in place. <br /> <br />The City has retained the services of Schlenner Wenner to perform the City of Lake Elmo’s audit for 2024. <br />The 2024 Annual Comprehensive Financial Report (ACFR) and Management Reports will be presented to <br />the City Council by Mr. Ryan Schmidt – Partner, from Schlenner Wenner with the opportunity to ask <br />questions of both Mr. Schmidt and City Staff. <br /> <br />ISSUE BEFORE THE CITY COUNCIL: <br />1) Does the City Council have any questions regarding the 2024 ACFR? <br /> <br />DISCUSSION: <br />Mr. Ryan Schmidt will present information regarding the 2024 Audit and answer any questions the City <br />Council may have pertaining to the 2024 Audit and the 2024 ACFR. <br /> <br />The City received an unmodified audit opinion, meaning the Financial Statements are fairly stated in all <br />material respects. There were no findings related to Minnesota Legal Compliance. One finding related to <br />Internal Controls over Financial Reporting is noted in the report - Lack of Ideal Segregation of Duties. <br /> <br />As of December 31, 2024, the unassigned fund balance of the General Fund was $ 10,324,572 or 130% of <br />2025 budgeted expenditures and transfers. <br />FISCAL IMPACT: <br />Overall sound policies, fiscal management, effective operational, capital, and long-range planning are all <br />integral parts of City business leading up to the audit and completion of the ACFR. As such, continued <br />investment in financial systems will help position the City to continue to provide quality, efficient, timely <br />and cost-effective services to the constituents of the community. <br />