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pe} a | w) KennethS. Frank, CPA R. A. MERCER & co., P.C. Raymond A. Mercer, CPA 1931-1983 Roger J. Lis, J. CPA Certified Public Accountants Kathryn A. Larracuente, CPA Christopher M. Zera, CPA 290 Center Road . West Seneca, New York 14224 Phone 716-675-4270 Fax 716-675-4272 www.ramercercpa.com INDEPENDENT AUDITORS’ REPORT To the Village Board of the Village of Gowanda, New York Adverse Opinion We have audited the accompanying financial statements of each major fund of the Village of Gowanda, New York (the “Village”), as of and for the year ended May 31, 2025, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. in our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on the Financial Statements as a Whole section of our report, the financial statements referred to above do not present fairly the financial position of the Village, as of May 31, 2025, or the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Adverse Opinion on the Financial Statements as a Whole Management has not presented government-wide financial statements to display the financial position and changes in financial position of its governmental activities. Accounting principals generally accepted in the United States of America require the presentation of government-wide financial statements. The amounts that would be reported in government-wide financial statements of the Village’s governmental activities have not been determined. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities. under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our adverse audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.