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SCC Item 1- 2025 Audit Presentation6/16/2026 1 City of Otsego Otsego, Minnesota Nancy Schulzetenberg, CPA 1 SCC- Item 1 6/16/2026 2 The Audit 2 6/16/2026 3 Opinion on the City’s Basic Financial Statements Unmodified Opinion – Best opinion an auditor is able to offer Provides assurance that the financial statements are fairly presented in all material respects Report on the results of an audit performed in accordance with Government Auditing Standards Lack of Segregation of Accounting Duties No compliance findings Report on the results of an audit performed in accordance with Uniform Guidance Unmodified opinion on compliance No internal control findings Components of the Audit 3 6/16/2026 4 Report on the results of testing on Minnesota Legal Compliance No findings Communications Letter Required communications Financial analysis Emerging issues Components of the Audit (Continued) 4 6/16/2026 5 Financial Communications 5 6/16/2026 6 General Fund 6 6/16/2026 7 General Fund Revenues 7 6/16/2026 8 General Fund Revenues (Continued) 8 6/16/2026 9 General Fund Revenues – Budget and Actual 9 6/16/2026 10 General Fund Expenditures 10 6/16/2026 11 General Fund Expenditures (Continued) 11 6/16/2026 12 General Fund Expenditures – Budget and Actual 12 6/16/2026 13 Tax Capacity, Levy, and Rates 13 6/16/2026 14 Water Fund 14 6/16/2026 15 Sewer Fund 15 6/16/2026 16 Storm Water Fund 16 6/16/2026 17 Auditor 17 6/16/2026 18 Nancy Schulzetenberg A U D I T PA RTN E R 320 - 650 - 0219 N A N C Y. S CH U L Z E TE N BE R G @CR E ATI V E P L A N N I N G .CO M 18 6/16/2026 19 Thank You 19 6/16/2026 20 This commentary is provided for general information purposes only, should not be construed as investment, tax or legal advice, and does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The information contained herein has been obtained from sources deemed reliable but is not guaranteed. 20