The Ocean City Mayor and City Council held a work session on Tuesday, October 28, 2025, beginning at 1:00 PM. The agenda included a closed session from 12:00 to 1:00 PM, public comments, and several new business items: acknowledgement of the Police Commission report, presentation of the independent auditor opinion for FY2025, annual comprehensive financial report, State Highway Administration fall update, and two contract approvals for fire hydrant assessments and softball field lighting.
You've got everybody trying to cross the Route 90 bridge. And the line goes back. I've seen it go back to the car wash up on seventy-fourth Street. And if I'm sitting in in that line waiting to, and I've been there for a half hour, and I'm sitting in front of the fire station and the fire alarm goes off and the fire truck wants out. Do I want to give up my place in line so the fire truck can get out? Well, of course, if you're a good citizen, you'd say yes, I'll get in get out of line and go back to the beginning of the line and wait another half hour to go home. But if I'm most people, I'd say, hey, they can wait till the traffic moves a little bit and makes room for them. So to avoid problems with that, I think a no no stopping, no standing zone would be uh helpful. Thank you. Anyone else today? All right, seeing none, we'll move on to new business. Item A, we have an acknowledgement overstanding committee report. We had the police commission meeting on October 15th. Questions about that? Seeing none, we'll move on. Item B, we have an independent audit opinion of the fiscal year 2025 annual financial statements presented by Chris Lehman. Welcome. Thanks for having me. Good afternoon, everyone. Um I have a brief presentation that I'll share that goes over the uh results of our recent uh fiscal year 2025 financial statement audit um for the town. So if we start on slide uh three with scope of services, probably done one. All right, there we go. Okay. Um we've completed the audit of the June 30, 2025 financial statements. In addition, because the uh town has expended more than 750,000 of federal expenditures, there's also what's termed a uniform guidance single audit that's required. That's a uh federally mandated compliance audit. In addition, the state of Maryland requires a uh standalone report that reports uh the revenue and expenditures related to the convention center. The state of Maryland also requires the uniform financial report to be submitted along with the annual financial statements, and that's currently due at the end of this month. Uh once we've finished up the single audit, there's also a data collection form that's required uh to be submitted that we will complete. So those are the um uh deliverables that we've either completed or in the process of completing for the audit. Next slide. Thank you. So we've issued a clean or unmodified opinion on the financial statements, and that says that the financial statements are reasonably free of material misstatement, and that would be the best opinion we could give under professional standards. We discovered no fraud uh through our audit. Our audit isn't a forensic audit, but we are required to have a healthy skepticism of fraud that it could be that it could happen at any time by anyone. We discovered no material weaknesses in the internal controls, and I'll have a slide that highlights the significant controls that we relied on for the audit. We've also received the full cooperation and management, so any records that we requested. Questions that we asked, we obtain obtained uh adequate support and adequate answers to all of our questions. We are in the process of still finishing up the single audit. Uh we have no findings to report to date, and we're still well within the deadline for the single audit. That's due uh March 31st of next year, so there's plenty of time, and we're well within that window. And then lastly, we had no audit entries that we proposed, so that just uh speaks to the quality of the records that we were uh provided for audit. This slide here just shows the key phases of the audit. Um we have the planning phase where we meet with management prior to the audit, understand any changes or significant transactions that we need to be aware of for the audit. Our preliminary testing, we come out and test transactions and understand processes that impact the financial statements, and our final field work phase, we come after management has closed the books and we audit those year-end numbers, and then we review lastly the draft of the report, and we issue our opinion at the conclusion of the audit. Next slide. And then this is uh just a different way to look at our audit process. Really, the audits designed to be a funnel of how we filter out, really, we're filtering out financial statement risk through each process. We're at the end of the process, we can uh give that unmodified opinion once all the financial statement risk has been addressed. Any questions so far?