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Englewood Cliffs council accepts 2025 audit, auditor flags ongoing ledger and reconciliation weaknesses
Summary
The borough's auditor reported a clean (unmodified) opinion for the 2025 municipal audit but identified 14 repeat recommendations and two material weaknesses tied to general ledger maintenance and bank reconciliations; the council moved to accept the audit and corrective action plan and approved a minor budget amendment related to deferred charges.
The Englewood Cliffs Borough Council on July 8 accepted the 2025 municipal audit and the accompanying corrective action plan after a presentation by the borough's independent auditor.
The auditor told the council the 2025 audit received an unmodified opinion, a marked improvement from the previous year when the report included four qualifications. "We basically eliminated all the qualifications to the independent auditor's report," the auditor said, while noting that 14 recommendations remain open from prior years and that two process-level material weaknesses persist in general ledger maintenance and bank reconciliation preparation.
The auditor said the firm "satisfied ourselves with respect to the balances in the various funds" once reconciliations were completed and emphasized the firm's confidence that the financial statements were fairly presented. Council members asked whether the remaining recommendations could be cleared before the next audit; the auditor said administration and finance had more time now than in the prior year to act and encouraged continued remediation.
CFO remarks and council action
The borough CFO told the council two agenda items required specific action: acceptance of the audit and acceptance of the corrective action plan. The CFO also presented a minor budget amendment to reclassify $533 from a deferred charge into Social Security, a mechanical adjustment required by state budget law. "It does not have any impact on the overall budget or the tax increase," the CFO said. After brief discussion, council approved accepting the audit and adopting the amendment by roll call.
Why it matters
An unmodified audit opinion is generally viewed favorably by rating agencies and third parties. However, the council and administration still face open recommendations that relate to controls and record-keeping; the auditor urged continued action, and staff committed to addressing the ledger and reconciliation items ahead of the next review.
What's next
Administration said it will track remaining recommendations and work with the finance committee to clear repeat items. The audit and corrective action acceptance were recorded in the meeting's resolutions; council members said they expect to revisit outstanding items at future finance-committee meetings.
