External auditor gives Lynn City unmodified opinion on FY2025 statements; internal-control finding cleared

Mr. Palmisano, principal at Witham, presented the commission with the FY2025 audit results and explained the audit scope and outcomes.

“We issued an unmodified opinion,” Palmisano said, noting that the unmodified opinion is the opinion the commission wants to receive. He told commissioners the single audit required by federal rules was completed on time this year and resulted in no findings; similarly, testing of internal controls produced no reportable findings for FY2025.

Palmisano described factors that affected the audit timeline — principally the timing of pension information from the city — but said the audit procedures, including testing of estimates (allowance for doubtful accounts, unbilled water, depreciation, OPEB and pension liabilities), were performed and that significant transactions were recognized in the proper period. He also summarized two recent GASB pronouncements (GASB 101 and GASB 102) and noted modest disclosure changes related to union agreements.

On procedures and independence, Palmisano said auditors provide reasonable — not absolute — assurance and perform testing on a sample basis, and the commission’s staff reviewer oversees any non-audit assistance the firm provides. He emphasized there were no disputes with management and no fraud was identified as part of the audit procedures.

Next steps: the audit reports will remain part of the commission’s public records; staff and the commission will continue routine oversight and follow-up on any action items that arise from ongoing financial management.

Representative quotes from the meeting: • “One of the key components of [the audit] is pension. Pension we rely on information from the city,” Palmisano said, explaining timing impacts on the audit schedule. • “There was no finding on internal controls this year,” he said, noting a prior-year finding related to a system crash had been addressed.