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Auditors issue clean opinion on Madison’s fiscal 2024 statements; town posts strong fund balances
Summary
External auditors Mahoney Sable gave Madison unmodified (clean) opinions on fiscal 2024 financial statements and major federal and state programs, reported favorable budget variances and combined ending fund balances of roughly $70.2 million, and noted pension and OPEB liabilities requiring future attention.
External auditors reported clean audit results for Madison’s fiscal year 2024 and highlighted strong fund balances and manageable pension funding levels at the board’s Feb. 19 meeting.
Mike Van Denter, a partner at Mahoney Sable who led the engagement, told the Board of Finance that the firm issued unmodified opinions on the town’s financial statements and on compliance for major federal and state programs, including ARPA-related funds. "An unmodified opinion is expressed when we've concluded that the financial statements have been prepared in all material respects in accordance with accounting principles generally accepted in the United States of America," Van Denter said.
Auditors performed federal and state single audits given the town’s level of grant activity and reported no deficiencies in grant compliance. They also performed agreed-upon procedures on school year reports filed with the Connecticut Department of Education.
On the town’s fiscal picture, auditors said the final budget included additional appropriations that planned a use of fund balance of about $2.9 million, but actual operations produced an increase in fund balance of about $4.1 million and an overall favorable budgetary variance of roughly $7 million driven by revenue surpluses and lower-than-budgeted expenditures.
Combined ending fund balances were reported at approximately $70.2 million, up roughly $22.2 million from the prior year; the general fund had about $25.9 million (with $24.2 million unassigned, or roughly 2.9 months of operating appropriations). The capital projects fund showed an ending balance of about $40.7 million, attributed largely to debt issuance to fund ongoing school projects.
Auditors also reviewed long-term liabilities. The town reported net pension liabilities (approximately $10.3 million for the town plans, $6.8 million for the police plan and $73,000 for the fire plan) with funding ratios in the mid-to-high ranges; OPEB liabilities totaled about $13.4 million and were 0% funded because the town has not established a trust for retiree healthcare benefits. Auditors recommended the board consider actuarial consultation about establishing funding trusts.
Board members thanked the audit team and asked clarifying questions about pension funding and OPEB options; auditors said they found no uncorrected misstatements, no disagreements with management, and no reportable internal-control deficiencies.
