Sauk Rapids City Council to Review 2024 Financial Audit Monday Night

(KNSI) — The Sauk Rapids City Council will discuss a 2024 financial audit Monday night that flagged a “significant deficiency,” showing too few people handling the city’s money matters, leading to a lack of checks and balances in place.

The audit found that critical financial tasks are handled by a small group of employees, which could lead to mistakes or fraud going unnoticed. Auditors highlighted specific areas that could be impacted, were electronic funds transfers, payroll, receipting, utility receipting, liquor store inventory, and accounting processes, ensuring accuracy and consistency and recording transactions. There could also be misstatements, making it harder for the city to track and report its finances accurately; no actual problems were found during this review.

The root of the issue, according to auditors, is the city doesn’t have enough employees to properly divide up financial responsibilities, which they noted was a common challenge for cities of similar size.

While the finding is serious enough to require attention, auditors say it’s not a crisis level problem.

City officials acknowledged the issue and plan to keep monitoring the situation. They’ll look at whether it makes sense to hire more staff or change procedures, weighing the costs against the risks. The Finance Director will oversee any improvements, with the City Administrator keeping tabs on progress.

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