Audit gives Waukesha transit a clean opinion; reserve fund reported at just over $1.6 million

Jody Dobson, a principal at Baker Tilly, told the Waukesha Transit Commission that the firm issued an unmodified (clean) audit opinion on the transit operation’s 2025 financial statements, meaning the statements fairly present the system’s financial position in all material respects.

Dobson said revenues were “very consistent” between 2024 and 2025, with a slight increase in 2025, while expenses fell modestly, driven by small decreases in labor, benefits and purchased transportation. She said management intentionally drew down federal COVID-era grant funds and used the local subsidy savings to build a reserve; “the reserve fund at the end of 2025 was just over 1.6 million,” Dobson said.

Commissioners asked where undrawn CARES/ARPA funds reside. A staff member and Dobson explained that undrawn grant balances are retained by the federal grantor and are drawn down by requesting reimbursement against qualifying expenses. Staff reported $2.8 million remained to draw as of the end of last year and estimated current availability at about $2.3–$2.4 million.

On timing, staff said ARPA funds tied to transit carry a spending deadline that ends on Sept. 30, 2029. Dobson emphasized that the audit and the single-audit procedures for federal grants identified no issues for transit this year.

Why it matters: the clean opinion signals accepted financial reporting and internal controls for the transit operation, while the reserve balance and remaining federal grant availability give the commission flexibility for capital purchases and to smooth future operating budgets if fuel or other costs spike.