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City Council Regular Meeting Minutes July 14, 2026 Page 2 1 Motion by Councilmember Doolan, seconded by Councilmember Randle, to approve the 2 Consent Agenda items. 3 Motion carried 5-0. 4 5 VII. PUBLIC HEARING - NONE. 6 7 VIII. REPORTS FROM COMMISSION AND STAFF — NONE. 8 9 IX. GENERAL BUSINESS OF COUNCIL. 10 11 A. 2025 Finance Audit. 12 13 Mayor Webster welcomed Andy Hering from Redpath to review the 2025 Finance Audit. 14 15 Mr. Hering stated that Redpath completed the City's financial audit on June 24a'. He presented 16 information on the results of their audit. He began by reviewing the reports that Redpath issues 17 relating to an audit. The first report he reviewed was the independent auditor's report on the 18 financial statements, which noted that the audit is conducted to detect material misstatements. He 19 stated that the result of this report was an unmodified, or "clean," opinion, which is the highest 20 level of opinion. Mr. Hering then reviewed the report on internal controls, which provides an 21 overview of the City's financial policies and procedures. He noted that one internal control issue 22 was identified and labeled as a financial statement correction. He clarified that the audit 23 standards are high and that three corrections occurred during the audit: one relating to interfund 24 loan balances, one relating to salaries payable and prepaid expenses, and one relating to a new 25 assessment that should be recorded in the debt services fund rather than the capital project fund. 26 He stated that all these issues were addressed in the audit, but had to be reported because Staff 27 had not addressed them before the audit. Mr. Hering then reviewed the report on Minnesota legal 28 compliance. He reported one compliance finding related to a statute requiring invoices to be paid 29 within 35 days of receipt. He stated that two vendors and five invoices in total were within the 30 required timeframe. Mr. Hering stated that the final report reviewed new accounting policies 31 adopted in the year, of which there were none. He commented that this report also included a 32 review of their long-term debt and bonds payable, and that St. Anthony's is standard and below 33 required levels. He was pleased to report that no difficulties or disagreements were encountered 34 in the audit and that Staff were well prepared. He presented a financial overview of the general 35 fund and discussed the City's fund balance policy. Mr. Hering provided information on the 36 revenues and expenses of the City's water and sewer operations. He finished by presenting on 37 the liquor fund. 38 39 Mayor Webster thanked Mr. Hering for his presentation. 40 41 Councilmember Jenson thanked Mr. Hering for the thoroughness of Redpath's work and thanked 42 the Staff finance group for their good work on the audit. He asked City Manager Yunker and 43 Assistant City Manager Morello to share his thanks with their Staff. 44