Aug. 12—SUPERIOR — The city of Superior had a surplus of $1.5 million at the end of the 2023 budget year.
The fund balance for 2023 rose to $12 million, compared to $10.4 million at the end of 2022, according to the city's audited financial statements.
Revenue fell about $1.4 million under budget in 2023, but expenditures were about $2.9 million under budget, said Sheanne Hediger, a principal with Baker Tilly US, LLP, the city's auditing firm.
Over a five-year period, the trend is showing a stable fund balance that reflects about 34% of the city's annual budget, Hediger said.
"Ultimately, we had a clean or unmodified opinion on the financial statement and no issues with the process," she said.
The city is sitting at about 24% of its debt capacity used, according to the auditor, leaving plenty of room for borrowing if needed.
The audit did find a two areas of concern around financial reporting and internal controls. Payroll is one of those areas, said Finance Director Nick Rhinehart. In order to do payroll, the Human Resources Department has access to the city's financial reporting system, he said.
"We can't find a good way to get around that," Rhinehart said.
Hediger said it is a common problem her firm finds when doing government audits.
"It's not to say that we found anything inappropriate," she said.
The city is currently working to replace its financial software that could alleviate those weaknesses by limiting access permissions, Councilor Tylor Elm said.