External auditors issue clean opinion on Anne Arundel County FY25 financials; minor control improvements recommended

External auditors SC&H told the county council on March 10 that they issued an unmodified (clean) opinion on Anne Arundel Countys financial statements for the year ended June 30, 2025.

Angela Lynch, audit partner, said the clean opinion reflects positively on managements financial reporting and the countys control environment. The audit report, she said, was issued Jan. 30, 2026, after a transition-related extension.

Caitlyn Williams, senior manager at SC&H, summarized a set of control and process recommendations raised during the audit. None rose to the level of a material weakness. Key points included incomplete initial inclusion of certain library sick-leave balances under GASB 101 (management adjusted and will include the library going forward), a recommendation to formalize the countys policy for placing capital projects into service so depreciation starts consistently, and suggested refinements to the local income-tax receivable estimate methodology.

The auditors also recommended better documentation for outstanding connection-unit receivables in the water and wastewater fund and earlier completion of certain reconciliations to reduce year-end compression in the audit cycle.

Why it matters: a clean opinion is the highest level of assurance auditors give and supports the countys financial statements used by bond markets, rating agencies and budget decision-makers. The management letter highlights routine improvements that can reduce audit friction and clarify financial processes.

Next steps: finance and DPW staff told the auditors they are coordinating improvements, and the county expects a more efficient audit cycle as processes standardize and system upgrades proceed.

Source: SC&H presentation to Anne Arundel County Council work session, March 10, 2026.