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Town auditor gives unmodified opinion on FY2024; revenues beat budget, fund balance held
Summary
Auditor Carl reported an unmodified opinion for the fiscal year ended June 30, 2024, telling the Leonardtown Town Council that revenues exceeded budget largely because of higher interest income and income-tax receipts; the town’s unassigned fund balance remained roughly $2 million.
Carl, the town’s external auditor, told the Leonardtown Town Council the audit for the fiscal year ended June 30, 2024, yielded an unmodified (clean) opinion and did not include any material weaknesses or significant deficiencies.
The auditor said total general‑fund revenues came in higher than budgeted — roughly $3.0 million versus a budgeted ~$2.45 million — driven mainly by stronger interest income and higher income‑tax receipts. Carl said interest income contributed most of the positive variance and that income‑tax receipts also exceeded budget. He noted capital projects and timing of encumbrances continued to produce year‑to‑year fluctuations in expenditures.
Why it matters: an unmodified opinion means the auditor found the financial statements presented fairly, in all material respects, and a healthy unassigned fund balance reduces short‑term fiscal risk. The council heard that the town’s unassigned fund balance was about $2 million at year‑end, which the auditor said was within the town’s fund‑balance policy target.
Details from the presentation included: the town consolidated information on governmental and proprietary funds; proprietary funds showed an operating loss on a GAAP basis driven by noncash depreciation but positive operating results before depreciation; capital assets in construction‑in‑progress reflected the wastewater treatment plant work; and interest earnings on escrow and investment accounts helped offset some debt service costs. The auditor summarized the town’s two recent bond issuances, existing debt service schedules and the composition of net position for proprietary funds.
Carl also reported that the town expended federal awards during the year related to COVID/ARPA that required a single audit for FY2024. He said the town’s single‑audit work did not produce compliance findings that rose to the level of material weaknesses for federal awards and described the town as moving toward a low‑risk auditee designation if the single‑audit pattern continues.
Council members and staff noted two related operational items during the discussion: the town has refinanced a previously anticipated balloon payment with Shore United following a recent parking‑lot purchase, and snow‑removal costs for the recent winter event have already exceeded budget and will affect planned road projects in spring.
Votes at a glance from the meeting: the council approved the minutes from Dec. 8 (voice vote; no roll‑call tally recorded).
Ending: The council did not take further fiscal actions at the meeting; staff and auditors said they would produce the final audit package and that interim financial statements for the current fiscal year will be presented in future meetings.
