Town auditor gives Goshen a clean opinion, flags water fund deficit

Justin Wood, the auditor who conducted Goshen’s 2025 audit for the firm identified in the packet, told the Town Board the firm issued an unmodified opinion on the town’s financial statements for the year ending Dec. 31, 2025. "In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, each major fund and fiduciary fund of the town of Goshen as of 12/31/2025," Wood said.

Wood walked the board through key fund results in the audit. He said the town’s combined general funds showed a healthy fund-balance ratio compared with the 2026 budget — roughly 32 percent of the following year’s budget for total fund balance and about 30 percent for available fund balance — and that the two general funds produced a net surplus in 2025. The sewer fund produced a large surplus of $359,000 and a total fund balance of about $933,000; Wood noted that while the percentage (about 243% of the following year’s budget) appears strong, a single major capital failure could quickly reduce that cushion.

At the same time, Wood told the board the water fund is carrying a structural deficit caused by "unseen repairs" and that the deficit must be addressed over time. The management letter included no internal-control findings, Wood noted, and praised the budget officer’s handling of a recent transition.

Board members asked clarifying questions about a $17 million actuarial liability for other post-employment benefits (OPEB). Wood repeated that the $17 million figure represents the present value of projected retiree health insurance payments over roughly 30 years and that the town can only budget and fund the next 12 months of health-insurance obligations — actuarial liabilities are disclosure items rather than cash reserves the town can pre-fund.

The board thanked Wood for the presentation and moved on to the public hearing on the comprehensive plan later in the agenda.