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Auditor: 2024 report has adverse opinion tied to unmeasured OPEB liability
Summary
Roberts & Greene presented Lancaster's 2024 year-end audit, reporting an adverse opinion on governmental and business-type activities solely due to an unmeasured other post-employment benefits (OPEB) liability; major funds received unmodified opinions. The firm said an actuary would be needed to measure OPEB.
Tim Greene of auditing firm Roberts & Greene reviewed Lancaster’s 2024 year-end audit with the Select Board on March 16.
Greene said the firm issued an adverse opinion on the town’s governmental and business-type activities because the town has not determined its OPEB liability; he noted the general fund and each major fund received unmodified opinions. Greene explained determining the OPEB liability would require hiring an actuary and described the trade‑off between the cost of that study and any lender concerns.
Selectman Kathy‑Jean Lavoie asked what similar communities do about OPEB; Greene said practices vary, with some communities budgeting for it and others not. Greene also said lenders had not begun pressing towns over the adverse opinion at this time. The Select Board thanked Greene for the explanation and reviewed the audit pages with him. The board did not take immediate action on commissioning an actuarial study during the meeting.
