Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Finance topic
No spam. Unsubscribe anytime.
Auditor gives Mount Desert a "clean" opinion; unassigned fund balance noted at $3.62 million
Summary
Auditor Kelly Bowden reported an unmodified (clean) opinion on the town's financial statements for the year ending June 30, 2025, and highlighted an unassigned fund balance of $3,621,830 (about 14% of expenditures), prompting discussion of reserve targets and upcoming budgets.
Kelly Bowden, who led the audit presentation, told the board the town received an unmodified opinion on its fiscal year 2025 financial statements and accompanying notes.
"You received an unmodified opinion, which is a clean opinion on the financial statements and the notes," Bowden said, and walked the board through the management's discussion and analysis, key variances and fund‑balance details. She noted an unassigned fund balance of $3,621,830, which the auditor characterized as 14% of total expenditures and compared that measure to peer towns.
Bowden pointed to a positive revenue variance of $386,498 and an unfavorable expenditure variance of $1,842, which together produced a net budget surplus before the board's voted use of $400,000 to reduce taxes. She also outlined capital project reserves and the marina fund's net position.
Board members asked clarifying questions about OPEB and long-term debt and discussed the desired reserve target. The auditor said 10% to 12% is a common recommendation but cautioned that lower reserves can pose cash‑flow risks; in this meeting the town's unassigned balance measured about 14%.
The board moved to accept the audit as presented and approved the report by voice vote.
