Town of Lexington receives clean audit and reports $27.1 million net-position increase for fiscal year 2024

Kendra Vandross, CPA of the Brittingham Group, told the Lexington Town Council on Feb. 3 that the firm issued an unmodified (clean) opinion on the town’s 2024 annual financial report and found no internal-control findings.

Vandross said the town’s net position increased to about $198 million at June 30, 2024, an increase of approximately $27.1 million from 2023. She attributed the change primarily to higher water and sewer revenues, unrestricted investment earnings, business license receipts and operating and capital grants and contributions.

Council members asked for additional detail on the increase. A council member suggested that a roughly $15 million state grant might account for a portion of the change; Vandross and town staff said the increase was a combination of factors and noted that developer-donated water and sewer infrastructure assets recorded by the town also raise net position when accepted.

Vandross said the audit was an unlimited-scope engagement with full access to the town’s books and records and that the town has received the Government Finance Officers Association Certificate of Achievement in Financial Reporting for 20 consecutive years for its comprehensive annual financial report.

No audit findings were reported under the independent-auditor review of internal control over financial reporting or compliance for major programs. Council members requested a more detailed breakout of the $27.1 million increase, and the auditor’s office and staff agreed to provide that analysis in follow-up materials.