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Warr Acres council accepts 2024 audit, auditors flag ARPA compliance and leave accruals
Summary
The council unanimously accepted the city's 2024 financial audit and single-audit report, which carried unmodified opinions but identified significant deficiencies related to ARPA documentation, late filings and $318,000 of accrued leave exceeding policy. Council approved a plan to address findings and directed staff follow-up.
Warr Acres — The Warr Acres City Council voted unanimously to accept the city's 2024 annual financial audit and accompanying single-audit report on federal awards, the council was told Tuesday.
Arlich CPA Keny Darte told the council the firm issued unmodified (clean) opinions on both the financial statements and the single audit performed under Uniform Guidance because the city's federal expenditures for the year exceeded the audit threshold. The auditor said the city's net position decreased by about $361,000 for the year ending Dec. 31, 2024, and highlighted roughly $961,322 in federal awards tested during the audit.
The auditors identified three significant deficiencies the council must address: (1) multiple employees had accrued vacation and compensatory time in excess of policy limits, totaling about $318,000; (2) documentation for public notice related to ARPA-funded project selection was incomplete for compliance testing; and (3) the single-audit filing to the state and federal clearinghouse was late, triggering a required finding. Darte said management provided written responses to each finding and auditors will review progress during next year's audit.
Mayor Childs and city staff said the administration has already implemented a time-off and overtime directive intended to enforce accrual limits, and that the budget adopted for the current year contained funds to resume step raises that had been paused previously. City staff and the auditor agreed the next audit will examine whether management's corrective actions are complete.
The council accepted the audit after a short discussion and thanked the auditor for the presentation. The vote to accept the 2024 audit was unanimous.
What happens next: staff will implement and document corrective actions on the auditors' findings, particularly the leave-accrual monitoring and ARPA recordkeeping; the auditors will review progress in the next audit cycle.
