Auditor: Norwich posts clean FY25 audit with $2.1 million general‑fund increase

CliftonLarsonAllen told the Norwich City Council on Feb. 2 that the city's fiscal‑year 2025 financial statements received an unmodified, or "clean," opinion and that state and federal single audits tested produced no compliance findings.

Melinda, a principal with CliftonLarsonAllen, said the audit found no internal‑control or compliance deficiencies tied to the financial statements or to the major federal and state award programs the firm tested. "There was an unmodified opinion on the financial statements. This is a clean opinion," she said.

The audit highlighted several headline figures: government‑wide capital assets of about $152,800,000; long‑term debt near $227,200,000; and a city net position of roughly $46,600,000, the bulk of which reflects net investment in capital assets. On the fund level, the general fund showed a net increase of about $2,100,000 for fiscal 2025, driven by higher-than‑budgeted tax collections, investment earnings and savings from vacant positions. The general fund's unassigned balance was reported at about $22,300,000, roughly 14.5% of the fiscal 25 general fund budget.

CliftonLarsonAllen also reviewed business‑type activities, reporting a strong year for Norwich Public Utilities with a roughly $24,600,000 surplus and increased grant receipts. Pension and OPEB results showed mixed funding: the city employee pension plan was about 99.5% funded while the volunteer fire plan was about 56% funded; the OPEB net liability was reported at about $38,500,000 and 58.8% funded.

The auditors noted the city implemented GASB 101 (compensated absences) during the year; the change had an immaterial effect and required no restatement. Auditors identified areas requiring additional testing or professional judgment — notably actuarial estimates used to calculate net pension and OPEB liabilities, claims and judgments, and alternative investments not priced in active markets — but did not report formal findings.

Council members thanked CLA for the presentation and asked follow‑up questions about the surplus and the implications of new accounting standards. CliftonLarsonAllen recommended routine extra testing on significant estimates and offered to connect the city with cybersecurity and AI seminar resources to help the council and staff better understand emerging operational risks.

The council did not take formal action on the audit presentation; the report will be part of the city's record and posted materials.