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Auditors report clean opinions for Madison; audit shows fund balances, pension and OPEB liabilities
Summary
Mahoney Sable presented the townaudit for fiscal 2025, issuing unmodified opinions on the financial statements and federal/state programs (including ARPA), reporting combined ending fund balances of about $37.2M and noting pension and OPEB liabilities requiring ongoing funding decisions.
Mahoney Sable partners presented the town's fiscal-year 2025 audit to the Board of Finance on Jan. 21, reporting unmodified (clean) opinions on the townfinancial statements and on major federal and state programs.
"We did issue unmodified clean opinions on the town's financial statements," partner Mike Van Divvenur told the board, adding that the firm also issued clean opinions on the town's compliance with major federal programs, including the Coronavirus State and Local Fiscal Recovery Funds (ARPA).
The auditors summarized key financial highlights: combined ending fund balances of roughly $37.2 million (a decrease driven by capital projects), an unassigned general fund balance of about $23.8 million (covering just under three months of expenditures), and a capital projects unassigned deficit that the auditors said will be eliminated through bond issuance and school construction reimbursements.
Auditors also noted pension and OPEB figures: the town pension had a net liability of about $9.2 million (approximately 75% funded), the police plan about $6.2 million (71% funded), and an OPEB liability of about $11.6 million that is currently 0% funded because no trust has been established. Van Divvenur recommended attention to actuarial assumptions, discount rates and making annual required contributions.
The auditors said they found no significant deficiencies or material weaknesses and filed reports by the statutory deadline; they also described application of new accounting guidance on compensated absences, which reduced beginning net position by roughly $2 million.
Next steps: the board discussed the pension and OPEB funding posture and asked staff to continue monitoring actuarial valuations and funding options during the next budget cycle.
