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South Burlington Council accepts FY24 audit showing $1.3 million surplus, clean opinion
Summary
City auditors RHR Smith presented the FY24 financial statements and single-audit results; the council accepted the audit, which reported a $1.3 million surplus, an unmodified (clean) opinion and no material weaknesses or single-audit findings.
South Burlington City Council voted Feb. 6, 2025, to accept the city’s audited financial statements for fiscal year 2024 after a presentation by auditors from RHR Smith & Company. Auditor John Boulay, the audit manager on the engagement, told the council the previously reported surplus "stayed at 1.3" (million) and the firm issued an unmodified — commonly called a clean — opinion.
Boulay summarized the audit’s key points: the general fund and capital funds were largely consistent with prior years, enterprise funds (recreation, water, water pollution control and stormwater) showed modest fund-balance increases, and the financial statement notes disclose a Tax Increment Financing (TIF) bond with proceeds recorded in the TIF fund. He told the council the audit found no material weaknesses, no significant deficiencies and no questioned costs in the single-audit testing of federal funds. "That number has not changed. It stayed at 1.3," Boulay said when describing the surplus.
Heather Hunter, audit director on the engagement, and Boulay said the auditors tested the city's coronavirus state and local fiscal recovery funds (ARPA/CSLFRF) as part of the single-audit procedures. Hunter said the city received an unmodified opinion and the audit produced no management letter comments requiring corrective action. "I would also congratulate the city on an on modified or a clean opinion," Hunter said; the auditors noted no disagreements with management.
City Finance Director Martha (last name not specified in the transcript) briefed councilors on fund-balance details and highlighted an "aviation fund" balance resulting from aviation-fuel sales. She said the aviation fund held about $878,000 at year end and noted those funds can be used for airport improvements.
Councilors asked routine questions about outstanding checks, internal controls and how the new financial system under development will affect next year’s audit. Boulay said the finance team cooperated closely during field work and that reconciliation and controls were strong. He noted an earlier outstanding-check comment was removed after staff explained outreach and follow-up procedures.
Councilor Mike moved to accept the audit and the motion was seconded; the council approved the audit in open session with an affirmative voice vote (the roll call indicated four affirmative votes after one councilor had left the meeting). "All credit to Martha and her team," one councilor said after the vote.
The council’s acceptance completes the formal audit-review step for FY24. City staff and auditors said follow-up items will be handled through normal budget and finance oversight as needed.
