Audit Report Summary for City of Hopkins Released

At the Hopkins City Council Meeting on Thursday, a letter from Becker Accounting, based in Minnesota, regarding an audit that they did of the Hopkins city finances for the period from June 30th, 2021 through June 30th, 2023. The letter was sent on March 15th, 2024. The city paid $10,000 for the audit in question. The letter reads as follows:

To City of Hopkins:

Attestation of financial statements for the years ended June 30th, 2021 through June 30th, 2023. This letter is provided in connection with the audit of the financial statements of the City of Hopkins for the year ended June 30th, 2021 through June 30th, 2023 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the results and financial position. All representations are made to the best of our knowledge and belief.

Financial Statements

We acknowledge our responsibility as set out in the terms of engagement dated March 2024, for preparing financial statements in support of documentation provided by the City of Hopkins, which give a true and fair view of the results and financial position for the organization as of June 30th, 2023.

We confirm that all income and expense data provided, has been recorded.

We confirm that transactions have been appropriately accounted for and we are not aware of further matters that require disclosure.

We confirm the financial statements are free of material misstatements, and nothing significant has been omitted. We believe that uncorrected misstatements identified during the audit, as listed in the post audit report, are material both individually and in aggregate to the financial statements as a whole. If our period of review is only 2022 and 2023, I’d say this is nonmaterial from the point of view of the Statement of Financial Position and Functional Expenses.

We confirm that, having considered our expectations and intentions for the period of review, we have a reasonable expectation of receiving adequate resources to support the financial operations as they existed during the period of review.

Information Provided

We confirm that all accounting records and relevant information has been requested and provided to the best of the ability of the City of Hopkins. All other records and related information, including minutes of all management and trustee meetings have been made available. 

We confirm that all transactions undertaken by the organization reflected in the accounting records are reflected in the financial statements.

Post Audit Attestation Report

We requested and obtained all available information to support our development of the financial statements. During our review, we determined that the City of Hopkins lacked sufficient document retention to sufficiently support the development of financial statements for each year of review.

Specifically, for the period June 30th, 2021, no detailed information was available, the entity was only able to provide summarized account ending balances.

For the period June 30th, 2022, information was unavailable to determine 2021 Net Assets at the beginning of the year and subsequently, end of the year.

For the period June 30th, 2023, expense information was generally unavailable to support operations, limiting our ability to complete the Functions Expense Report. Additionally, no money market certificate information was provided, limiting our ability to complete the Statement of Activities.

It is our opinion that the City of Hopkins’ lack of record keeping was detrimental to our ability to effectively develop financial statement reports to adequately support business operations. Additional measures to improve financial record keeping should be considered.

Alyssa Becker

Becker Accounting, LLC

Council members Allen Thompson and Rick Gladman were unopposed for the recent election and were sworn in for another term.

Cameron Morrison of the Hopkins CBC came to discuss voluntary demolition grants, which involve the voluntary cooperation of owners. He said that the CBC would be willing to put money up to help if the city goes that route with abandoned homes and buildings. There is a $200,000 to $300,000 upper limit. Under the grant being discussed, the land would stay in the hand of the property owners, which would not involve condemnation.

O Tax is now providing clerical services to the city. Sue Wagner introduced Mary Smith, who will staff the office on Tuesdays and Thursdays from 9 am to 12 noon and on second Saturdays from 9 to 12 noon. People can also drop off payments at O Tax, which is located on Highway 148, on Wednesdays from 9 am to 4 pm. 

With the city still trying to figure out where it is financially, two different projects were tabled. Projects tabled included work on the road between River Valley and Agriland, the sidewalk across from the Roxy, and new meter sets there. Also tabled were dust control projects along Cemetery Road, behind the ball diamond, and part of First Street. 

Work needed to be done on the city pickup, which had hard starts. It needed a wheel bearing and a new fuel pump. The city plans to start patching holes around town.