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Takoma Park auditors issue unmodified opinion on FY25; no current findings
Summary
External auditors told the City Council the city—s FY25 financial statements receive an unmodified opinion, with no current audit findings; staff and auditors explained conservative budgeting, ARPA recognition for the library project, and reasons the adopted budget can show a deficit while actuals close the gap.
Auditors presented the City of Takoma Park—s fiscal 2025 comprehensive annual financial report and said they issued an unmodified opinion on the statements and found no current audit findings. "We have issued unmodified opinions, which means we believe the financial statements are fairly presented in accordance with United States generally accepted accounting principles," audit partner Tim Sawyer said during the council meeting.
The audit team highlighted an emphasis‑of‑matter paragraph tied to a new Governmental Accounting Standards Board rule on compensated absences and explained how federal ARPA funds were recognized this year as revenue because of capital activity on the library project. Sawyer reported that total fund balances across major funds rose to roughly $21.8 million for the year, with the general fund unassigned balance increasing from $10.8 million to about $14.3 million.
Council members pressed staff and the auditors on why the adopted budget sometimes shows a large deficit while year‑end actuals appear more favorable. Sawyer and Finance staff said the city typically budgets conservatively on revenues and budgets at or near full staffing levels while actual spending is often lower because of vacancies and capital projects that are delayed into subsequent years. "You're taking a conservative approach to revenues, and your true revenues come in better than budget," Sawyer said in response to a council question.
Staff also noted the shift in revenues tied to the speed‑camera/red‑light camera program and ARPA recognition, which materially affected intergovernmental and other fund columns this year. The Finance Director encouraged council members to consult the full report (financial statements and notes) for details on fund balances, capital assets and liabilities that appear on page 38 of the report.
The council thanked the audit team and accepted the presentation; staff and the auditors said they would provide any follow‑up detail requested by council members. The council did not take final action on the audit during the meeting; the presentation served as the formal public briefing to accompany the published FY25 financial report.
Ending: The auditors and finance staff said they will post the comprehensive report online and make follow‑up briefings available for council members who want more detail on specific line items.
