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Independent auditors give Warwick an unmodified FY2024 opinion but flag school reporting weaknesses
Summary
CliftonLarsonAllen presented an unmodified opinion on Warwick's FY2024 financial statements and federal awards but identified a material weakness in school department reconciliations and reporting plus two significant federal compliance deficiencies; auditors also outlined upcoming GASB changes.
CliftonLarsonAllen (CLA) presented the City of Warwick's fiscal‑year 2024 audit to the council, reporting an unmodified (clean) opinion on the city's financial statements and unmodified opinions on federal awards while noting internal control issues at the school department.
Jennifer Cook, signing director for CLA, told the council the auditors issued a clean opinion on the city and federal award statements but identified one material weakness related to the school department's review, reconciliation and timely reporting. CLA also flagged two significant deficiencies in compliance for specific federal programs and described a finding around ARPA/ federal reporting that has since been corrected.
Cook reviewed long‑term liabilities (pension and OPEB), showing trends in the city's governmental fund balances and the school unrestricted fund deficits over five years; she noted the city's trust to fund OPEB has increased net position and improved assumptions. CLA also outlined upcoming GASB guidance (GASB 101, 102, 103 and 104) that will change disclosures and measurement approaches in coming audits and asked the council to engage with management to address implementation.
On single‑audit coverage, CLA audited approximately $23.6 million in federal spending and found an isolated reporting error in the ARPA cluster that the administration corrected. The auditors said they will work with city and school management on implementing the new GASB standards and improving reconciliations at the school division.
Council members heard the results, asked questions about timing and materiality, and were invited to provide feedback on future presentations. The presentation was informational only; no formal action was required.
