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Auditor gives Hamden a clean FY25 opinion, flags falling fund balance
Summary
Hamden’s FY25 audit returned an unmodified (clean) opinion; auditor Kelly Bowden reported an unassigned general fund balance of $3,289,332 (14% of expenditures), noted a downward trend and recommended maintaining 14–16% to avoid cash-flow risks.
An independent auditor told the Hamden Town Council on June 1 that the town’s FY25 financial statements received an unmodified (clean) opinion and showed generally favorable variances, but that the unassigned fund balance has declined.
Kelly Bowden, the auditor who performs the town’s audit work, said the unassigned fund balance is $3,289,332, equal to about 14% of budgeted expenditures, down from 23% in 2023 and 19% in 2024 (figures are as of June 30, 2025). "We think 14 to 16% is a better percentage," Bowden said, warning that lower reserves increase the risk of cash-flow issues and the possible need for tax anticipation notes.
Bowden walked the council through fund balance composition, noting total fund balances near $13.99 million when reserves, grants and encumbrances are included and pointing to a net decrease in the unassigned fund balance mainly because the town budgeted a $2,000,000 fund balance use to reduce taxes. She also reviewed enterprise funds: the sewer fund reported net income and has a positive unrestricted position.
Councilors asked what reserve percentage the auditor would suggest; Bowden reiterated 14–16% to preserve operating flexibility. The auditor offered to provide additional detail to councilors and to post explanatory materials with the minutes.
Next steps: the audit report will remain part of the public record; councilors can request further analysis ahead of budget discussions scheduled for June.
