Independent auditor gives South Berwick a clean opinion for fiscal year ending June 30, 2024

An independent auditor told the South Berwick Town Council the town's financial statements received an unmodified (clean) opinion for the year ended June 30, 2024, meaning the statements are materially correct in accordance with generally accepted accounting principles. Auditor: the financial statements are materially correct.

The auditor said fieldwork began in late September, draft reports were circulated in November and final reports issued earlier in December. The presentation to the council highlighted that the town's total government-wide net position rose about $1.7 million and unrestricted net position increased about $400,000. At the fund level, the general fund's fund balance grew about $700,000; however, the auditor noted the town assigned $1.3 million of that balance to a town-hall renovation vote taken after the fiscal year end, which reduced the undesignated general fund balance by about $1.3 million.

Why it matters: a clean audit opinion is the strongest standard for municipal financial reporting and signals to residents, bond markets and grantors that the town's financial statements present fairly. The auditor said general fund revenues came in above budget, expenditures were below budget and the town finished the year with a roughly $640,000 surplus versus a planned use of $850,000.

The auditor said no material weaknesses or significant deficiencies in internal control were identified. The report included one advisory (management) comment: procurement and purchasing policy language could be updated to better align with federal procurement standards. The auditor offered to provide example language and said the town's recent engagement of a firm to review personnel policies could be a natural time to update procurement language.

Council members asked about timing of the $1.3 million appropriation for the town-hall renovation; the auditor explained the vote occurred after the June 30 fiscal year end but before the audit report issuance, so it was reflected as a subsequent event in the financial statements.

Other details shared in the presentation: government-wide current assets rose by roughly $1.5 million, long-term liabilities fell by about $500,000, and the town's other governmental funds (including the new transit TIF) increased fund balances by a net of about $700,000. The auditor described the favorable general fund swing as roughly $1.5 million compared with budget assumptions.

Council members and staff thanked the auditor and town finance staff for the work. The presentation concluded with the auditor offering to provide further examples and technical language to help the town update procurement policy language.