Hideout auditor issues unmodified opinion; audit flags a general-fund overspend

Gilbert & Stewart CPAs presented the independent financial audit for Hideout for the fiscal year ended June 30, 2024, and issued an unmodified (clean) opinion on the town’s financial statements. The auditor told council that Pelorus prepared the town’s financial statements and that auditors relied on records provided by town staff.

The auditors reported a single state-compliance finding: a budgetary compliance exception in the general fund. The general-government expenditures line was over the final amended budget by about $51,000 in the audited year (the audit packet showed an original general-government budget that was later amended). The auditors noted that budget amendments and reporting practices around a municipal account (impact-fee usage and internal reporting) should be clarified to avoid future instances where expenditures exceed the final adopted budget.

Auditors also reviewed the town’s annual fraud-risk assessment and reported progress on several checklist items; the town’s self-assessment score was in the low-risk range with some opportunities to document formal internal-audit functions and committee oversight to gain additional points on the state’s fraud-risk tool.

Council members asked for follow-up on the budget presentation and whether the one finding represented a reporting timing issue or a substantive overspend. Staff said they were working on reporting refinements and would follow up with a recommended change in how certain funds are presented for budget purposes.

The auditors also reviewed long-term financial trends and reported that combined net position increased year-over-year by about $657,162 in the auditor’s presentation, a net-position improvement across governmental and business-type activities as reported in the statements.