Lake Clarke Shores audit returns unmodified opinion as reserves grow

An independent auditor told the Lake Clarke Shores Town Council on Tuesday that the town and its community redevelopment agency received an unmodified (clean) opinion on their fiscal-year 2025 financial statements.

David Kaplipsky, a partner at Ground Associates, said the firm was engaged through the RFP process and that its review of the town’s and CRA’s books produced the best possible audit opinion. "We were able to issue an unmodified opinion on the financial statements," Kaplipsky said during the council meeting. He also said the audit showed the town's liquidity remains strong.

Council members used the presentation to congratulate town staff and ask clarifying questions about wording in the report. Kaplipsky explained that a line in the management report noting that "the town has not met one or more of the financial emergency conditions described in section 218" is boilerplate intended to state that the town does not meet statutory emergency criteria, not that the town is in a financial emergency. He said the firm will look to clarify that language in future reports.

Council members noted measures of fiscal health cited by staff during the meeting: the general fund balance, months of reserves, and multi‑year reductions in the millage rate. In the presentation and subsequent discussion, staff and council highlighted that the town's reserves had grown and that the general fund position had improved amid capital spending, including a recently completed bridge project.

The auditor also reported a clean compliance opinion on state reporting requirements. Council members thanked the finance staff and the town’s financial consultant for the preparation and cooperation that supported the audit.

The council received the audit presentation and had no formal action tied to the item beyond public acknowledgement and questions. The auditor invited follow-up questions and offered to return with clarifying language in next year’s report.