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Milton audit returns clean opinion; town told to address water‑sewer reserve shortfall
Summary
An independent auditor told Milton commissioners the town's financial statements received an unqualified (clean) opinion but flagged water‑sewer operating and unrestricted cash issues; officials were told to prepare a response to Local Government Commission performance indicators.
Auditor Tony Brewer told the Milton Town Board on Nov. 8 that the town's fiscal 2022 financial statements received an "unqualified or clean opinion," meaning the audit fairly represents the town's books and records as of June 30, 2022.
Brewer said the audit binder includes management discussion and analysis and new performance indicators regulators now require. He highlighted that the town's General Fund unassigned fund balance is about 133% of current‑year expenditures — "if you did not collect a dime in the General Fund, you could stay open a year and four months," he said — and that a $31,000 county grant accounted for most of a $36,865 year‑over‑year revenue increase.
The auditor also pointed to strains in the Water and Sewer Fund: total revenue decreased by about $2,512 while expenditures increased roughly $15,157, largely for repair and maintenance tied to system age. Brewer noted Milton's unrestricted cash for the water‑sewer fund was 12.69% at year‑end, below the Local Government Commission's minimum guidance of 16 percent and therefore an item the governing body must address in a required response.
Brewer explained a recent change in reporting: the LGC will not issue unit letters, and auditors must report financial performance indicators and require a governing‑body response when indicators of concern appear. He said the board must develop and submit a signed response within 60 days addressing any significant deficiencies, material weaknesses or other audit findings.
Finance Officer Sharon Williams provided staff numbers through October 2022, saying General Fund revenues were at 18% and expenditures at 24% of the fiscal year target (33%). She reported bank balances (General Fund roughly $14,418 at Oct. 31; Water/Sewer about $32,529 at end of October) and noted one customer overuse claim for which the board deferred approval until a plumber's invoice confirms repairs.
The audit presentation did not include any formal vote to accept the audit in the minutes beyond the presentation; the auditor invited follow‑up questions and said his door is open for commissioners seeking clarification.
The board will need to follow up on the water‑sewer cash position and prepare the LGC response on performance indicators as described by the auditor.
