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Town audit: independent firm issues unmodified opinion, restatement for sick‑leave recognition
Summary
External auditors gave the Town of Spencer an unmodified (clean) opinion on the FY2025 financial statements and on major programs in the single audit; auditors recorded a $35,491 restatement to recognize a portion of sick-leave liabilities and reported no material weaknesses or significant deficiencies.
Nick Wicker of Strickland Hardie PLLC presented the town’s fiscal year 2025 audit and told the board the firm issued an unmodified opinion on the basic financial statements and on major federal and state programs subject to single-audit rules. The auditor explained the town adopted GASB Statement No. 101 for compensated absences and that the audit included a restatement of $35,491 to record the current portion of sick-leave liabilities that had not previously been recognized.
Wicker summarized key revenue and expenditure changes: governmental revenues increased by roughly $2.45 million in FY2025 (including about $900,000 from a rural transportation grant, $275,000 for a downtown economic development grant and $500,000 from the Parks and Recreation Trust Fund), while governmental expenditures increased by about $2.19 million compared with FY2024. He also noted the town purchased a new fire truck in FY2025 for about $894,375, and the general fund’s unassigned fund balance available to appropriate was approximately $992,212 (about 19.32% of general fund expenditures).
Operational and control matters: The auditor said no material weaknesses or significant deficiencies were identified and that required communications to governance (AUC 260/265-type letters) were included in the report. The firm performed the single audit for the town’s major programs and expressed an unmodified opinion there as well.
Why it matters: A clean opinion is the standard auditors seek and indicates the financial statements fairly present the town’s financial position under generally accepted accounting principles. The restatement and note disclosures (compensated absences and depreciation estimates) will appear in the audited financial statements and help inform budget and policy discussions.
Next steps: Staff and board members discussed items in the report and asked follow-up questions; the auditor will provide the finalized audit package and provide any additional clarifications to town staff and governance as requested.
