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Transit audit returns clean opinion; commissioners press on CARES/ARPA balances
Summary
Baker Tilly presented a clean (unmodified) audit opinion for Waukesha City transit operations and highlighted a $1.6 million reserve; commissioners sought clarification on undrawn CARES/ARPA funds, drawing processes and grant deadlines.
Jody Dobson, a principal at Baker Tilly, told the Waukesha City Transit Commission on June 18 that the firm issued an unmodified — or "clean" — opinion on the 2025 transit financial statements, saying the statements "are fair presentation in all material respects." Dobson said revenues slightly increased in 2025 while overall expenses decreased modestly, and that management has been using federal pandemic grants to allow local subsidy dollars to be set aside into a reserve account.
Commissioners pressed staff and the auditor about the status of undrawn federal pandemic funds. Transit staff said undrawn CARES/ARPA funds are tracked as "grant available" and that the cash remains with the federal government until the city requests reimbursement for qualifying expenses. Staff said $2,800,000 was available to draw as of the end of the last fiscal year and estimated the current available balance likely sits around $2,300,000–$2,400,000 after reconciling state allocations.
On timelines, staff said the transit ARPA funds carry a deadline of Sept. 30, 2029 (the end of fiscal 2029). By contrast, staff said CARES and CRRSAA funds do not have a formal sunset in the agency's paperwork, though the Federal Transit Administration has encouraged grantees to move funds along promptly.
The audit packet noted the reserve fund balance at the end of 2025 was just over $1,600,000, which transit staff said is under the city's cash management and will be used for operating contingencies and planned capital expenditures, including bus replacements. Commissioners also discussed a multi-year trend in which combined state and federal operating support fell from 59.17% in 2024 to 55.93% in 2025, a change staff described as "concerning" and driven mostly by reductions in state funding.
The commission did not need to take action on the audit presentation; the auditor and staff fielded questions and confirmed the city’s financial statements and grant tracking for the transit operation.
The commission moved on to other agenda items; the next formal step for the audit would be any required council-level acceptance or follow-up requested by the commission.
