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Town of Bristol accepts FY2024 financial statements after auditors report unmodified opinion, note material weakness
Summary
Auditors gave the Town of Bristol an unmodified opinion on its FY2024 financial statements while noting a material weakness tied to the timeliness of close and reconciliations; council accepted the statements unanimously.
The Town of Bristol council unanimously accepted the town's fiscal year 2024 annual financial statements after CliftonLarsonAllen auditor David Hanson reported an unmodified audit opinion but identified a material weakness in internal control over financial reporting.
The auditors' report, presented Aug. 20 by David Hanson of CliftonLarsonAllen, said the audit was performed under generally accepted auditing standards and that the firm issued an unmodified opinion on the financial statements. Hanson also said the auditors reported a material weakness tied to the timeliness of the town's financial close and bank reconciliations and to several adjusting journal entries needed during the audit.
The finding matters because it is classified as a material weakness, which indicates the auditors found deficiencies that could lead to material misstatements if not addressed. Hanson said there were no instances of noncompliance with laws, regulations, contracts or grants noted in the report.
Town finance staff and councilors highlighted key drivers behind the town's results. The general fund's total fund balance ended FY2024 at about $12.4 million, an increase of roughly $2.5 million from the prior year, driven largely by $1.2 million of additional tax collections (the treasurer described these as collections of back taxes) and by capital appropriations that were budgeted but not spent in FY24.
"We collected more this year than we had in the past of back taxes," the town treasurer, Carl (surname not specified), said when explaining the increase. Carl also explained that the town budgeted $1.4 million for capital but spent roughly $700,000 in FY24 because some vehicles and capital items did not arrive until FY25.
Hanson and town staff also discussed other audit details: a single-audit review focused on ARPA-funded activity, and a misposting from prior years related to a RIB (Rhode Island Infrastructure Bank) resiliency bond that had been posted as revenue in FY23 when the loan functions as a drawdown (reimbursable) instrument rather than up-front revenue. The auditors recommended more timely bank reconciliations and a faster financial close process.
Councilors and staff noted the town's new accounting system should speed future audits by allowing auditors to pull reports directly rather than relying on manual Excel workarounds. Council members praised the work of finance staff and said the stronger fund balance would help maintain the town's bond standing: the treasurer noted the town's reserve ratio rose to roughly 15.4%, up from roughly 10% the prior year, and councilors said that supports the town's Aa+ bond rating.
Councilor Tim moved to accept the financial statements as presented; the motion was seconded by Councilor Tony and passed on a voice vote with no opposition.
The council received the auditors' recommendations and directed staff to continue implementing process improvements aimed at shortening the statement-close timeline and improving reconciliations.
The acceptance concludes the FY2024 audit presentation; staff said they will provide future reports using the new accounting system and follow up on the auditors' recommendations.
