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Independent auditors issue clean opinion on Manassas Park FY24 financials but report internal-control weaknesses
Summary
An unmodified opinion was issued on the FY24 financial statements; auditors reported material weaknesses in internal control over financial reporting (Yellow Book), while single-audit compliance testing found no material weaknesses. The general fund unassigned balance and net position improved year over year, with staff noting transfers planned to address a negative capital projects balance.
The independent auditors presented the City of Manassas Park’s FY24 Annual Comprehensive Financial Report on Oct. 7 and issued an unmodified opinion on the financial statements, a standard "clean" audit opinion. The presentation also included a Yellow Book (internal control) report that identified material weaknesses in internal control over financial reporting; auditors explained the weaknesses in the context of the city’s reporting and recommended corrections. The single-audit compliance testing did not identify material weaknesses in major program compliance.
Director of Finance Josh McNeil summarized key figures included in the report and the auditor’s presentation: governmental activities net position ended FY24 at approximately $42.8 million (an increase of about $8.6 million year over year); business-type activities net position was about $20.3 million (a decrease of roughly $416,000). On a modified-accrual basis, the combined governmental fund balance was reported at about $29.8 million; the general fund’s unassigned fund balance was cited at approximately $30.3 million.
Auditors also noted a negative fund balance in the capital projects fund that staff intends to address with transfers. The auditors said their work followed Generally Accepted Auditing Standards, the yellow-book standards for governmental audits and single-audit requirements where applicable.
Council members asked for clarifications on fund-balance components, long-term debt schedules, and the causes of the change in total assets; auditors and staff offered to provide supplemental breakdowns (Exhibit references were given) and to share amortization and notes detailing long-term obligations upon request.
Next steps: Staff will provide follow-up materials requested by council, and the city will implement recommended internal-control improvements identified by auditors.
