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Auditors issue clean opinion for Arlington; report flags federal awards, fund balances and debt levels
Summary
Alexander Thompson Arnold presented an "unmodified opinion" on Arlington's financial statements, reporting $1.41 million in federal awards (including $772,000 in ARPA), a $22.43 million general fund balance, and $7.7 million in long‑term debt remaining.
Alexander Thompson Arnold told the Arlington Board of Mayor and Aldermen on March 3 that the town’s 2025 financial statements received an "unmodified opinion," the auditing firm’s term for a clean audit. "It means that the financial statements as we see it are free of any material misstatement or any evidence of fraud," said Matt Wood, a partner with ATA.
Wood said the firm conducted a single audit because Arlington exceeded $750,000 in federal grant expenditures this year. "You had $1,410,000 in federal awards," he said, noting that $772,000 of that total was ARPA funding that was tested as part of the single audit and came back clean. He reported $7,700,000 in long‑term debt remaining and said the town made $984,000 in principal payments during the year.
The auditor outlined other figures that frame Arlington’s fiscal position: general‑fund expenditures of about $16.5 million and a general‑fund balance of $22,430,000, a net loss in the general fund of roughly $930,000 in the current year, and sewer‑fund net income of $2,410,000 with a positive cash flow of $2,180,000. Wood also noted more than $2.5 million was spent on sewer capital construction in the period and that Arlington schools appear in the financial statements as a blended component unit (they are included but not audited by the firm).
Board members asked how to interpret close budgeting from year to year. Wood said municipalities that carry multi‑year grants on their budgets can appear far over or under budget; Arlington’s narrower variance, he said, suggests staff track expenditures and amendments closely. "That close shows that they're on top of what the expenditures are going to be," Wood said.
Mayor and aldermen thanked the auditors and staff for the report. The presentation ended with an invitation for questions and no material internal control weaknesses were reported by the auditors.
What happens next: the audit remains a part of the town record and informs budget planning and bond/credit considerations. Staff and the board will use the audit figures as they prepare future budgets and capital planning.
