Lancaster County audit returns clean opinions; fund balance up $14 million

Grant Davis, CPA, of Malden & Jenkins presented Lancaster County’s annual comprehensive financial report for the year ended June 30, 2025, and said the firm issued an unmodified (clean) opinion on the county’s financial statements and a clean opinion on single-audit compliance.

Davis told the council the county reported $503,000,000 in total assets and $227,000,000 in liabilities, producing a total fund balance of about $90,000,000 — roughly 13 months of fiscal 2025 spending — including $72,000,000 in unassigned fund balance (about 10 months available for appropriation). “A clean audit opinion,” Davis said, “is really the only acceptable result in a financial statement audit from your perspective.”

He identified one internal-control deficiency related to year-end close adjustments and described the firm’s required communications about internal controls and federal grant compliance. Davis also noted the county’s ACFAR (annual comprehensive financial report) continues to meet high standards and that the county received a Government Finance Officers Association award for fiscal 2024 reporting.

During questions from council, Davis clarified the audit’s scope: “This is a financial statement audit,” he said, not a forensic investigation; the single audit portion reviews compliance for federally funded programs. He also flagged emerging risks such as information security and the operational implications of new accounting standards while cautioning against converting one-time fund balance into recurring expenditures.

The presentation concluded with council members thanking finance staff for submitting audits on time and noting the fund balance provides flexibility for borrowing and credit considerations. No formal action was required; the report was received as presented.