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CliftonLarsonAllen gives Torrington a clean FY2025 audit, flags school fund deficit and cybersecurity recommendations
Summary
CliftonLarsonAllen issued unmodified opinions on Torrington's FY2025 financial statements and single audits, noting a clean result but recommending plans to address the Torrington High School renovation deficit, strengthen IT/cybersecurity, and conduct fraud-risk assessments.
CliftonLarsonAllen presented the City of Torrington's FY2025 audit to the Board of Finance on Feb. 17, saying the firm issued unmodified (clean) opinions on the financial statements and on federal and state single audits.
"Unmodified opinion is a clean opinion. It's something that you'd wanna receive each and every year," the auditor told the board while summarizing audit results. The auditors reported no material weaknesses or significant deficiencies in internal control or compliance for the programs they tested.
The presentation included government-wide figures and fund-level summaries. The auditors reported a government-wide net position of $69,100,000 and business-type (WPCA) net position of $53,900,000. The general fund total fund balance was cited at $21,200,000, with an unassigned general fund balance of $15,100,000, about 10% of general fund expenditures.
CLA highlighted the Torrington High School renovation fund as a negative fund balance: the audit showed a deficit of $12,200,000 (an increase of about $16,200,000 year over year) and noted bond anticipation notes are in place and that issuance activity will change the reported balance as bonds are issued.
On federal awards, the auditors said Torrington expended $13,600,000 in FY25, an increase driven mainly by ARPA spending as the city moves to liquidate funds before the December 2026 deadline. "Torrington is complying, at least for the major program we tested, which is ARPA, with what the federal government asked Torrington to do," auditor Gabe Epstein said, noting an unmodified opinion on major‑program compliance and no findings.
The auditors also reviewed pension and OPEB measures: the municipal employees pension plan was reported at about 86% funded (net pension liability cited at $7,200,000) and the police and fire pension plan about 71% funded. The OPEB trust showed a small increase in net assets.
CLA's management letter contained practical recommendations: (1) develop a plan to fund deficit-position funds (Torrington High School renovation and the maintenance fund); (2) complete outstanding IT items, including a comprehensive disaster-recovery plan and enhanced firewall controls; (3) implement annual cybersecurity vulnerability assessments and strategy; and (4) conduct fraud-risk assessments for the city and Board of Education.
The auditors also briefed the board on upcoming GASB standards affecting FY26 presentation and certain asset disclosures and provided resources (a CLA blog/QR code) for further guidance.
The board thanked audit staff for completing the work on time. The auditors and staff said they will continue to monitor the issues identified and provide guidance as GASB changes are implemented.
