North Beach receives clean audit; auditor flags modest internal-control fixes

CliftonLarsonAllen presented an unmodified audit opinion for North Beach’s fiscal year ended June 30, 2025, and recommended several administrative improvements to strengthen internal controls.

“We had an unmodified clean audit opinion for the town's financial statements for the year ended 06/30/2025,” auditor Carl Hogan told the council, adding the firm identified three internal-control matters related to capital assets, accounts payable and revenue recognition.

The auditor emphasized that an unmodified opinion is the highest-level report an audit firm issues and indicates the numbers presented by management were fairly stated. Hogan also said the firm prepared a separate letter of recommendations to improve controls.

At a high level, Hogan reported that the town’s revenues outperformed budgeted amounts — in part because of state-shared revenues and investment earnings — and that the town recognized $1,100,000 of previously deferred American Rescue Plan (ARPA) funds during the year. Hogan said the town began the year with about $5.7 million in fund balance, added roughly $2.2 million during the year and closed with approximately $7.9 million in fund balance as of June 30, 2025.

Hogan noted the water fund posted a positive change in net position of about $45,000 (ending net position roughly $247,000) and the sewer fund had a positive net‑position increase of about $180,000; those figures include capital assets.

Mayor Benton and council members thanked the audit team. Benton said the town has implemented additional controls in the past 12–18 months, and that the audit validates staff efforts to increase transparency and checks and balances.

The council was told the full audit and the audit-related communications will be posted to the town’s BoardDocs site after the council formally accepts the report.