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Auditors issue unmodified opinion, flag internal-control weaknesses and single-audit changes
Summary
Auditors gave Lincoln Park an unmodified opinion on its 2025 financial statements but noted material weaknesses (journal entries, segregation of duties, untimely bank reconciliations) and disclosed that the city will reissue its 2024 single audit after ARPA reclassifications; federal expenditures totaled roughly $22.7M in 2025, mostly ARPA.
Auditors told Lincoln Park’s City Council on Jan. 12 that the fiscal-year-2025 financial statements earned an unmodified audit opinion, meaning the auditors consider the numbers and disclosures materially accurate, but the end-of-audit letter contains material weaknesses council should address.
Tim Tannango, an audit partner presenting to the council, said the audit produced three deliverables: the financial statements and opinion, the end-of-audit communications, and the federal single-audit of federal awards. "We did issue an unmodified opinion on the financial statements," he said, and the firm noted required reissuance of the 2024 single audit because some expenditures originally recorded to a drinking-water revolving fund were subsequently determined to be ARPA-eligible and must be reclassified.
Auditors reported the city had about $22,700,000 in federal expenditures in 2025, of which roughly $21,200,000 related to ARPA; major programs tested included ARPA and Community Development Block Grant awards. The audit letter also disclosed material weaknesses the auditors considered important to communicate to the council: (1) certain journal entries prepared as part of audit close procedures (treated as a material weakness), (2) limited segregation of duties around IT and secondary reviews in finance, and (3) bank reconciliations that were prepared and reviewed but not always timely.
Auditors stressed that such control gaps are not uncommon in small municipal finance offices but recommended that the council and staff prioritize internal-control improvements and timely reconciliations. Council members thanked the audit team and asked for follow-up work plans to address the items raised.
Votes at a glance from tonight’s meeting (formal roll-call outcomes recorded during the meeting): - Police equipment bid-wavier/waive formal bidding and authorize purchase of four ProLaser 4 bundles and one mobile radar speed sign from Custom Signals Inc. for $12,457.95 — motion passed (recorded unanimous affirmative votes). - Lincoln Park 2025 Transportation Asset Management Plan — adopted (affirmative roll-call votes recorded). - Adoption of Economic Opportunities policy (HUD Section 3 / 24 CFR part 75) for covered contracts — adopted (affirmative roll-call votes recorded).
What’s next: auditors recommended that staff take steps to remediate the identified control weaknesses; the city will reissue the corrected 2024 single audit and finalize the 2025 single audit in the coming weeks, per the auditors.
