Audit shows North Beach finished FY2024 with $700,000 increase in general fund, auditor says

The town’s independent auditor presented highlights from the FY2024 audit on July 17, saying the financial statements were fairly presented and the town ended the year in stronger fiscal position than budgeted.

Carl Hogan, who delivered the audit summary, pointed the council to the opinion paragraph in the audit and said the audit contained no modifications. Hogan said revenues came in about $400,000 higher than budgeted—largely because local income taxes exceeded expectations—and investment earnings were about $165,000 above plan. Real property tax receipts were lower than budgeted by about $300,000 due to accounting rules that defer recognition when collections occur more than 60 days after year-end. Expenditures were roughly $400,000 under budget, producing a net positive change in the general fund of about $700,000. Hogan said the general fund began the year at about $4.9 million and ended near $5.7 million.

"If you're not going to read all 40 pages of the audit report, I encourage everybody to read pages 4 to 11," Hogan said, referring to management’s discussion and analysis that explains results in layman’s terms.

Mayor Benton urged residents to review materials posted online at northbeachmd.org/boarddocs and thanked staff for the town’s direction. He and Hogan discussed the budgetary comparison schedule, which Hogan described as a useful "report card" showing budgeted amounts, actuals and variances.

The audit also includes required supplementary information—schedules the auditor said are not opinioned but provide important context on management’s discussion and other financial details. Hogan said the full audit report is available on the town’s website for residents who want more detail.

Town officials did not propose any formal actions tied to the audit during the meeting; they encouraged council members and residents to review the full report and bring follow-up questions to staff or the auditor.