Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance Audit topic
No spam. Unsubscribe anytime.
Sykesville auditor issues clean opinion for fiscal 2023–24; ARPA balance, Warfield note flagged
Summary
The town’s external auditor reported a clean (unmodified) audit opinion for the year ended June 30, 2024, while highlighting an outstanding note receivable tied to the Warfield project and roughly $2 million in unspent ARPA funds that must be obligated before Treasury deadlines.
The town of Sykesville’s external auditor delivered a clean audit opinion for the fiscal year ended June 30, 2024, and reviewed the town’s asset, liability and fund balances at the council’s Dec. 9 meeting.
The auditor said, “In our opinion, the financial statements referred to above present fairly in all material respects,” and walked the council through exhibits that show roughly $17 million in total assets, about $8 million in cash, and a net position a little over $13 million. The auditor also reported total governmental expenses of about $5.4 million for the year and a decrease in net position of about $819,000 on a full-accrual basis, which includes depreciation.
The audit presentation emphasized amounts available at the fund level used to operate the town: the auditor reported roughly $9.999 million in current (fund-level) assets, total fund liabilities near $487,000, and an assigned fund balance of about $1.5 million for future projects. The auditor noted restricted fund balances for specific capital projects, gatehouse funds and Warfield-related items.
The auditor pointed to a Warfield project note receivable that is in default and included a table of expected future principal receipts; that default is why cash flows and receivables projections show an unusual pattern for 2025. The auditor also disclosed a new Main Street lease entered during the year; while the lease appears in the notes, some lease payment conditions mean it was not fully included in the payment schedule.
Because the town received ARPA funding, the auditor said the town will require a different level of audit next year if expenditures exceed the single-audit threshold. The auditor told the council that, as of June 30, 2024, about $2,000,000 remained of ARPA funds and reminded council members that the Department of the Treasury has advised that unspent funds may need to be returned if not obligated by the program deadlines.
The auditor also reviewed pension disclosures: the town’s net pension liability at year end was about $1.4 million across two plans, with contributions for the year of about $61,000 (town plan) and $112,000 (LEOPS plan). The auditor said contractually required retirement contributions for the year were fully funded.
Council members asked whether any of the figures represented a near-term fiscal risk. The auditor replied that the town has “adequate reserves” and has planned assignments for future projects, but reiterated that obligated ARPA contracts must be in place before the Treasury’s deadline to avoid repayment.
The audit report and related notes were presented for council review; the auditor’s report was unmodified and the federal single-audit requirement triggered by ARPA spending was noted for future planning.
The meeting then moved on to other agenda items.
