Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance Audit topic
No spam. Unsubscribe anytime.
Auditors give Purcellville a clean opinion; council hears ARPA-supported water-fund results
Summary
Independent auditors issued an unmodified (clean) opinion on Purcellville's FY2025 financial statements; the town's general fund ended the year with roughly $12.2 million, while the water enterprise showed an $860,000 operating loss that was offset on the overall statements by roughly $3.7 million in ARPA revenue recognition.
Robinson, Farmer, Cox & Associates presented the town of Purcellville's fiscal year 2025 financial statements and an unmodified audit opinion to the council on Dec. 9.
Michael Lupton, the firm's auditor, told the council the audit found the financial statements to be "materially correct in accordance with generally accepted accounting principles" and reported no significant deficiencies in internal controls. Lupton said the general fund had an ending fund balance of about $12.2 million as of June 30, 2025, with $11.5 million unassigned. He said unassigned fund balance represented roughly 81% of general fund revenues, well above the town policy minimum of $3 million or 30% of general revenues.
Lupton also outlined the enterprise funds. "We saw an operating loss of $860,000 in the water fund," he said, and reported operating income of about $377,000 in the sewer fund. He added that the water fund's overall results were materially affected by federal American Rescue Plan Act (ARPA) revenues recognized in fiscal 2025. "That $3.7 million of ARPA funds recognized in the fiscal year significantly influenced the water fund figure," Lupton said. Without recognition of those ARPA revenues, Lupton said the water fund would have been in a loss position on the financial statements.
Council members asked clarifying questions about the enterprise fund calculations, the town's policy for fund-balance targets and the timing of the audit report's issuance. Lupton said the town's audit report issuance was delayed this year because the federal compliance supplement arrived late, but the auditors had completed their procedures and would issue the report in the coming days.
No formal action was required of the council at the presentation; Lupton closed by thanking staff and wishing the council happy holidays.
