Erie redevelopment authority audit receives unmodified opinion; audited 2025 financials accepted

The Erie Redevelopment Authority voted to accept its audited 2025 financial statements after the authority’s auditor reported an unmodified opinion and no internal control deficiencies, the board said at its virtual meeting on June 11, 2026.

George Dervich, principal at Zelinkovski Axel Rod (ZA), told the board the authority was receiving “an unmodified opinion,” meaning the firm concluded the financial statements were materially correct. Dervich said total net position was about $8.8 million, an increase of roughly $309,000 from the prior year, and that total revenues were about $4.3 million — down about $8.3 million from the prior year, a decline Dervich attributed to recognizing less American Rescue Plan Act (ARPA) funding in the current year and to a $5 million loan receivable that was recognized in the prior year.

The auditor also summarized results of the single audit of federal programs: total federal expenditures were about $2.7 million and the ARPA program was the major program tested. “The results of the audit is that the authority is receiving again an unmodified opinion over compliance and we have no internal control deficiencies to report,” Dervich said.

During his presentation, Dervich noted a reporting change recorded in Note 13: furniture purchased in prior years had not previously been added to capital additions and was added in this year’s statements, producing a small increase in net position; the transcript lists the recorded amount unclearly as “40,81.” The board was told that capital assets will now be presented on the statement of net position going forward.

Board members congratulated the finance staff for the audit outcome and asked whether the auditors had any informal suggestions to improve internal processes. Dervich said that, given current staffing and business-office processes, ZA had no internal control suggestions to report.

A board member asked whether the Erie Land Bank audit — for which redevelopment authority staff provide shared support — had any issues. Aaron, the authority’s executive director, said the land bank audit had been submitted and accepted by the Erie Land Bank board and that he would forward that audit to the redevelopment authority; the auditor confirmed the land bank audit also received an unmodified opinion.

The board moved to accept the audited financial statements; the motion carried.

Next steps: the board accepted the 2025 audited financial statements and staff will circulate the land bank audit to the board. The authority did not identify any required corrective actions in the meeting minutes.