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State Auditor tells committee budget largely unchanged; internal service fund remains majority of financing
Summary
The State Auditor briefed the Senate Appropriations Committee that the auditor's office budget shows little change for FY26, with most spending in an internal service fund and small general- and special-fund amounts; the office noted higher contractor costs for certain county audits.
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The State Auditor told the Senate Appropriations Committee on Feb. 20 that the office’s FY26 budget shows minimal change from the prior year, with most spending carried in an internal service fund and a comparatively small general-fund allocation.
The auditor said about 90% of the office’s budget is funded through an internal service fund, roughly 8% from the general fund and a small special-fund balance (about $53,000). The office meets the governor’s budget target and described two drivers of modest cost increases: higher external audit-contract costs and pay-act obligations. The auditor explained that the contract with CLA (the firm performing the state’s financial-statement and single-audit work) replaced a prior auditor and represents a modest increase.
County sheriff audits that were formerly undertaken by a Vermont firm have moved to the larger contractor and are now somewhat more expensive; the auditor said some local firms declined to bid for the work. The auditor also noted that the office’s physical workspace was closed after 2023 flood damage and that many staff continue to work remotely under a hoteling system.
Ending: The auditor offered to provide committee members with additional printed materials and follow-up documentation, and committee members thanked the office for the briefing.

