Independent auditor issues clean opinion; council and public press for clearer financial reporting
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Summary
Mays & Associates reported an unmodified audit opinion for FY2025 and highlighted a large net‑position increase driven by capital additions and actuarial changes. That clean opinion did not quiet public concerns: several residents asked for clearer detail on legal costs, credit‑card journal entries and other line items. The auditor said no forensic audit was indicated.
An external audit partner reported a clean (unmodified) opinion on the town’s FY2025 financial statements at the March 4 council meeting — the highest level of assurance an auditor can provide — but the presentation sparked detailed questions about the management discussion and where certain costs are recorded.
Audit findings and key numbers: Whitney Crockett of Mays & Associates told the council the basic financial statements for the fiscal year ending June 30, 2025, received an unmodified audit opinion. She summarized headline figures cited in the auditor slides: total assets rose from about $18.4M to $20.6M (an increase of roughly $2.2M, largely capital additions); net position increased by about $3.4M (a 258.1% change year over year), driven in part by changes in pension and OPEB actuarial figures; and the general fund’s unassigned fund balance was approximately $3.5M (about 2.9 months of expenditure, above GFOA best practice).
Public and council scrutiny: council members and several members of the public pressed both management and the auditor on apparent inconsistencies in the management discussion and analysis pages (the mayor pointed to a table that displayed a sign reversal) and sought more transparent breakout of large expense categories — especially legal costs. Auditor Crockett confirmed the audit opinion and said the firm’s scope is not forensic; she said the audit did not produce internal‑control findings and that she saw no indicators that would prompt a forensic engagement.
Midyear budget update: Finance Director Michael presented a midyear budget review after the audit. Using data through Jan. 31, he projected FY revenues slightly above budget by about $164,000 and general‑fund expenses under budget by about $408,000, producing a midyear net savings projection near $480,000. Michael described assumptions and drivers: increases in property‑tax receipts, variable sales tax and utility user‑tax timing, and actuarial changes that reduced pension/OPEB liabilities. He also noted that some capital projects were delayed and that staffing and litigation lines warranted monitoring.
Public reaction: speakers from the public urged greater numeric detail (general ledger entries and journal entries for credit‑card charges), raised questions about the presentation and sufficiency of the auditor’s scope, and asked whether the council should seek a forensic review; the auditor and staff said their reviews found no indication that a forensic audit was warranted. Several commenters also asked the council to publish more readily accessible line‑item details about legal fees and other large expenditures.
Representative quote: “I’m pleased to report to you tonight that the financial‑statement audit opinion was unmodified,” Whitney Crockett said, while later adding that she had requested management edits to correct a confusing table in the MD&A.
What’s next: staff said corrected MD&A text would be posted and that the council will receive clarifying follow‑up on line‑item questions and legal‑expense categorization. The council discussed an RFP for future audit work and how to make monthly/quarterly financial reporting more transparent going forward.