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Colmar Manor receives clean 2024 audit; auditors recommend tighter tax write-off and PayPal controls
Summary
The towns auditor delivered an unmodified (clean) opinion on Colmar Manors fiscal 2024 financial statements, reporting assets of about $3.5 million and a net position near $1.7 million while recommending a formal policy for uncollected personal property taxes, standardized PayPal procedures, and improved segregation of duties.
The Town of Colmar Manor received a clean (unmodified) audit opinion for the fiscal year ended June 30, 2024, the towns outside auditor told the council during its regular meeting.
Eva Webb, audit partner at LSWG, told the council the financial statements "present fairly, in all material respects." Webb said the town reported roughly $3.5 million in total assets at June 30, 2024, and a net position of about $1.7 million, down from the prior year largely because the town is spending previously recognized ARPA funds. At the fund level the auditor reported total assets of about $1.335 million, liabilities near $107,000, and a fund balance around $1.179 million.
The audit presentation showed total program expenses for the year near $2.56 million, revenues from charges for services of about $192,000 and contributions and grants near $251,000. Webb said fund-level revenues totaled about $1.793 million and total expenditures were about $2.392 million; the auditor attributed an approximate $746,000 change in net position to the use of ARPA funds recognized earlier as revenue.
Webb flagged several management-letter recommendations for the council's attention. She recommended adopting a formal policy governing when the town can write off uncollected personal property taxes and clarifying the allowance account for these receivables. She also urged the town to ensure PayPal receipts follow the same cash-disbursement controls as regular receipts. Finally, Webb advised reducing segregation-of-duty risk by ensuring people who have full accounting-system access are not sole authorized check signers, and suggested using two council members or the town manager as check signers to mitigate that risk.
Council members asked follow-up questions seeking practical steps on PayPal procedures and what segregation of duties would look like in the towns small staff structure. Webb said the firm could work with staff to update policies and suggested specific signer arrangements to lower risk.
The auditor also pointed the council to a new accounting pronouncement affecting compensated absences that may require a future policy change. Webb said the notes to the financial statements and the management letter provide additional detail on these items.
The town did not take formal action on audit recommendations during the meeting; Webb said auditors would work with management if the council requested assistance in implementing policy changes.
