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Auditor says Middletown LDC received 'adverse opinion' over unconsolidated LLCs
Summary
RBT told the Middletown Local Development Corporation that auditors issued an adverse opinion because three LLCs were not consolidated into the LDC’s financial statements; the presenter said the finding did not change the LDC’s reported net position of about $22 million.
The RBT presenter told the City of Middletown Local Development Corporation that the audit resulted in what the auditor described as "an adverse opinion" because three LLCs were not consolidated into the LDC’s financial statements for GAAP purposes. The presenter said this consolidation omission was the reason for the adverse opinion and added that it "had nothing to do with the LDC's numbers."
RBT gave figures from the financials: cash of $6,252, loans and related-party balances of $26,500,000, $3,800,000 due back to the city, and a net position near $22,000,000. The presenter said activity was very limited and expressed hope the consolidation issue would be resolved next year. The presenter also noted $6,183 in interest income on the report.
The presenter concluded by advising members that the presentation explains the technical basis for the opinion and that remediation would depend on incorporating the three LLCs into the consolidated statements in a subsequent filing. The committee thanked the presenter and had no follow-up questions during the meeting.
