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Auditor issues unmodified opinion for Garrett Parkbut records ARPA revenue adjustment
Summary
Auditor Frank Posega reported an unmodified opinion on Garrett Parkfinancial statements for FY2025, found no fraud or material internal-control weaknesses, and noted one material audit adjustment to record ARPA funds as revenue when expended; GASB 101 adoption requires valuing accrued sick leave.
Frank Posega, principal at Zelenkofske Axelrod LLC, told the Garrett Park Town Council that auditors issued an unmodified opinion on the townFY2025 financial statements and found no instances of fraud or material weaknesses in internal control.
"We expressed an unmodified opinion on the financial statements," Posega said during the Dec. 8 presentation. He also reported one material audit adjustment to record revenue related to American Rescue Plan Act (ARPA) funds that had been expended.
Posega explained that the town adopted GASB Statement No. 101 (Compensated Absences), which requires assigning a value to accrued but unused sick leave even though the town does not pay out unused sick leave upon separation. He noted that required disclosures and supplementary information, including management's discussion and analysis and notes to the financial statements, appear in the audit report.
Mayor Keller asked about an "unearned revenue" figure in the report; Posega said the town received ARPA monies up front and that ARPA funds are recognized as revenue when expended. Posega told the council the state encourages inclusion of certain budgetary footnotes even where they are not required.
The auditor presented the standard audit deliverables (auditorreport, MD&A, government-wide and fund financial statements, and notes) and invited follow-up questions.
Next steps: the audit was presented to the council for review and will be retained as part of the town record; Posega invited officials to contact the firm with follow-up questions.
