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Middletown auditors issue clean 2024 opinion, note $2 million restatement and prior training lapse
Summary
Middletown’s auditors from RBT told the Common Council on Oct. 6 that the city’s 2024 financial statements and single audit received unmodified (clean) opinions and that there were no internal control weaknesses reported for 2024.
Middletown’s auditors from RBT told the Common Council on Oct. 6 that the city’s 2024 financial statements and single audit received unmodified (clean) opinions and that there were no internal control weaknesses reported for 2024.
The auditor said the city adopted GASB 101 for compensated absences and that a 2023 noncompliance finding related to required harassment training had been corrected in 2024. The audit included a set of restatements that reduced the beginning governmental fund balance by $2,000,000; the auditor said 17 journal entries were proposed and accepted by the treasurer.
On liquidity, the auditor reported the city had “a little over $37,000,000” in cash and “a little over $36,000,000” in governmental funds. The auditor also described the city’s capital program, saying total project costs in progress were about $52,000,000 as of year-end 2024 and that capital assets on the city’s books totaled approximately $185,000,000. The presentation noted an energy performance contract balance of about $6,600,000 that matures in 2031 and that Section 8 loans were expected to be paid off in 2027.
Alderman Andrew Johnson asked about the consequence of the 2023 noncompliance finding. The auditor replied the matter is a reportable finding and that, in this case, it did not affect the audit opinion for 2024, saying “there really isn’t…it’s just a finding that we have to report on.”
When asked about the city’s bond rating, the auditor said the rating “should be fairly well,” noting recent bond activity.
The audit presentation also included routine audit items: a single-audit unmodified opinion on federal programs, discussion of long-term and short-term debt activity, and the auditor’s note that all funds were in positive cash positions. Council members thanked the finance team for the work that supported the audit.
The auditor’s remarks as delivered included an apparent inconsistency in one line of the transcript about funds invested in an “I Class” account; the council packet and the auditor should be consulted for the precise investment breakdown rather than relying on that single line of the meeting transcript.
No formal action was taken at the meeting on the audit report itself; council discussion moved to other agenda items after the presentation.
