External auditor gives town a clean 2024 opinion, finds ARPA spending compliant

An external audit presented at the town board's Feb. 19 budget hearing concluded that the town's 2024 financial statements fairly present its financial position and that ARPA grant spending tested was compliant with federal rules. Corey Spencer Scoble, senior manager for Dresher Malecki, told the board the firm issued an unmodified (clean) opinion for the fiscal year ended Dec. 31, 2024 and identified no reportable findings in either the financial statement audit or the single-audit testing of ARPA funds.

The audit team reviewed major funds including garbage, sewer, highway and general fund trends, and flagged changes the town should track under Governmental Accounting Standards Board (GASB) pronouncements. "For the 12/31/24 year, we provide an unmodified or a clean opinion, and we also did not have any reportable findings for this year's audit," Scoble said.

Why it matters: A clean opinion signals the auditors believe the town's financial statements are reliable for users such as creditors and the state comptroller's office. The separate single-audit review matters because municipalities that spend more than $750,000 in federal awards must be tested for compliance and internal controls; Scoble reported ARPA compliance testing had no exceptions.

Supporting details: The auditors reviewed departmental receipts and disbursements (town clerk, tax receiver, justice), found no reportable internal control weaknesses in those departmental tests, and noted trend details for the town's major funds: the garbage fund saw a modest fund-balance dip (about $85,000) tied partly to recycling contractor cost increases offset in part by ARPA transfers; the sewer and highway funds showed larger declines as capital transfers and emergency snow-removal contracting rose; the general fund decreased about $2.2 million in 2024 with a $10 million unassigned balance remaining.

The audit team also issued the usual management letter with suggestions for internal control improvements, focused principally on fixed-asset records, payroll automation, and consistent bank-reconciliation procedures for justice and tax accounts. Scoble said auditors had recommended that the town perform a full inventory of capital assets and continue work on automated payroll and bank-reconciliation policies.

ARPA and timing: Scoble told the board auditors tested obligations and expenditures for compliance with uniform guidance and the Department of the Treasury's final rules. He reminded the board that federal ARPA obligations must be in place and expenditures completed within the Treasury's deadlines (obligation requirements to be met before the federal deadline and spending to be completed by Dec. 31, 2026). "We tested contracts and invoices and were able to substantiate those obligations as well," he said.

What the auditors flagged for follow-up: GASB-related changes (for example, GASB guidance around compensated absences was implemented for 2024 and required a restatement), the need for improved fixed-asset records, and (for some departmental accounting) the formalization of month-end bank-reconciliation procedures.

Looking ahead: Scoble said the audit firm will submit the required Annual Financial Report to the New York State Office of the State Comptroller and that the audit materials include a departmental report section and communications required by auditing standards. The auditors also noted upcoming GASB changes they will review with town staff.

Ending: The auditors made themselves available for follow-up questions and emphasized their finding that ARPA spending tested was appropriate, but reminded the board that federal deadlines for obligations and spending still apply and require municipal attention to contract and obligation documentation.