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Lancaster audit returns unmodified opinion; city posts $18.9 million accrual gain, no findings
Summary
Lancaster's independent 2024 financial audit produced an unmodified (clean) opinion, reported a $18.9 million positive change in net position on an accrual basis, found no reportable findings and recommended management best-practice items including cybersecurity training and capital asset updates.
Lancaster City officials heard an independent auditor report an unmodified opinion on the city's 2024 financial statements at the Dec. 16 council meeting, signaling the auditor's conclusion that the statements are materially accurate and complete.
The auditor reported a positive $18,900,000 change in net position for governmental activities on a full-accrual basis, driven largely by an approximately $10.4 million increase in revenues compared with 2023 and a roughly $800,000 increase in expenses. The audit also showed total governmental net position of negative $107,400,000, a figure the auditor attributed chiefly to long-term pension and other post-employment benefit (OPEB) liabilities disclosed in the footnotes. The general fund's ending fund balance was reported at $12,100,000, with 77% assigned and 21% unassigned and available for spending.
"The opinion that we gave on the city's 2024 audit is an unmodified opinion," the auditor said, noting the audit included separate procedures required because the city expended more than $750,000 in federal funds. The auditor said there were no findings, significant deficiencies, or material weaknesses to report. An ongoing uniform guidance audit of the city's ARPA program, she added, is expected to be finalized next month.
The auditor identified several management-letter recommendations described as best practices: improved tracking of reimbursements so they are properly reported between funds, updating and providing capital asset information in advance of the audit, finalizing and testing a technology disaster recovery plan, and formalizing periodic cybersecurity training for staff.
Councilors and the mayor praised staff for the timely turnaround. Councilor Hirsch said the speed of completion reflected well on both auditors and staff. Mayor Suraci said the unmodified opinion was a mark of consistent financial management amid public criticism, adding, "We, regularly, meet this mark of an unmodified opinion and this is the twelfth year running." The presentation was introduced by Director Campbell and delivered by the auditor identified in the record as Jen (record string includes 'Pruver Kivi').
Next steps noted in the meeting: the city will finalize the uniform guidance (ARPA) audit next month and council requested continued monitoring of disclosures tied to pension and OPEB liabilities in the financial statements. The audit report and its management-letter recommendations were placed on the record for council review.
