Central Falls audit: independent firm gives clean opinion; ARPA funds lift net position

Central Falls City Council heard the results of the independent audit for the fiscal year ended June 30, 2024, on a presentation by Erica O'Lobry of CVS CPA that concluded the city’s financial statements received a clean, unmodified opinion and that federal program compliance tests showed no material exceptions.

The audit presentation matters because the results inform the council’s budgeting choices as one-time federal aid phases out and the city continues to manage long-term pension and other postemployment liabilities.

O'Lobry told the council the audit included both the financial-statement opinion and the single-audit (federal compliance) work; the firm reported no instances of fraud, no material uncertainties, and no significant deficiencies in internal control rising to a material weakness. “It is considered a clean, unmodified opinion,” O’Lobry said.

Key figures presented by audit staff: total governmental assets rose to about $71.2 million from about $59 million the prior year, liabilities were roughly $41.7 million (down from about $47 million), and net position increased to about $31.1 million. The auditors said the American Rescue Plan Act (ARPA) funding accounted for a substantial portion of the year-over-year increase in net position.

At the fund level, the audit showed a general fund balance with total assets of about $7.1 million and an unassigned fund balance near $2.5 million as of June 30, 2024. On a budgetary basis, the city showed an approximate budgetary surplus of $1.2 million for the year. The new high-school bond fund reported about $10.8 million in revenues and approximately $11.2 million in capital expenditures, with a debt issuance of about $3.2 million during the year.

Auditors highlighted major estimates that affect reported liabilities, including net pension liabilities and other postemployment benefits (OPEB). The report noted a large legacy pension liability (auditors cited approximately $24 million for legacy plans) alongside progress on funding: the municipal plan’s funding ratio rose to about 41 percent from 36 percent the prior year. O’Lobry emphasized the importance of continuing to make the annual required contributions and monitoring investment performance because those assumptions materially change actuarial results.

The firm also recommended strengthening IT governance and control practices, including clearer separation of IT duties, regular access reviews, and examination of third‑party vendor control reports. Those observations were presented as best-practice recommendations rather than findings that required corrective action under auditing standards.

Council members thanked the finance staff and the auditors. The presentation and the audit documents will be included in the city’s official financial-report package and will inform the council’s work as one-time federal funding phases out.