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Duluth audit clear of financial troubles


The Duluth City Council approved the finance committee’s recommendation to accept the fiscal year 2016 financial audit report. The audit report includes the city as a whole, the Downtown Development Authority, and the Urban Redevelopment Agency. The auditor issued an unqualified or clean opinion of the city’s financial statements.

The report, prepared by Mauldin & Jenkins, included no findings related to the financial statements. The report noted revenue came in over budget due primarily to insurance premium taxes, occupational taxes, and sponsorship revenues being more than budgeted. Expenditures for all functional areas were less than budget as departments managed to generate savings of $1.8 million from the current or operating budget.

The report includes two management recommendations. The report suggests segregation of employee’s duties for individuals who collect receivables, and for individuals who process property tax bills. The report also recommends the city review uncollected property taxes and establish and an allowance for these funds or consider writing off these old balances.



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