Farmington audit: clean opinion; GASB change raises compensated‑absence liability by $2.2M

The Town of Farmington received an unmodified — or clean — opinion on its FY2025 financial statements, auditor Catherine Patnod (Davies) told the town council on Feb. 10.

"We did have an unmodified or clean opinion," Patnod said while summarizing the Annual Comprehensive Financial Report and the federal and state single audits. She told the council the town's implementation of a new GASB standard on compensated absences increased that liability by $2,200,000.

Patnod walked through other highlights: a net increase in capital assets related to construction projects and the new Farmington High School, a net long‑term debt decrease (principal payments offset by issuance), and a general fund GAAP‑basis total fund balance of about $30.2 million with unassigned balance of $27.4 million (roughly 21.6% of expenditures and transfers out). She also reported a pension plan funded ratio of about 65% and an OPEB liability of $38.6 million (pay‑as‑you‑go).

On single audits, the auditor said federal and state programs tested, including the Coronavirus State and Local Fiscal Recovery Funds and the Small Town Economic Assistance Program (STEEP), had no findings or questioned costs. Patnod noted several upcoming GASB changes town staff should expect in coming fiscal years, including reporting model improvements and disclosure changes that could affect the MD&A and note presentations.

Her principal operational recommendation to the council and staff was improved segregation of duties in purchasing and accounts payable processes, student activity accounting, and scholarship fund recording. In response to council questions, Patnod explained that software user‑ID rights and vendor file administration are often part of such recommendations and should be tightened where feasible.

The council had no additional audit questions and thanked the audit team for the presentation.