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Town audit shows healthy reserves; auditors give 'clean' opinion
Summary
Independent auditors CBIZ reported an unmodified opinion on North Kingstown's FY2025 financial statements, noting a combined governmental funds increase of $15 million and an unassigned general-fund balance of about $21.6 million (roughly 20% of the operating budget). The council formally accepted the audit.
CBIZ managing director Kyle Connors told the North Kingstown Town Council that the firm issued a clean — unmodified — opinion on the town's FY2025 financial statements, meaning they found no material misstatements.
"If you read through our financial statements, you read that we issued a clean financial or clean opinion," Connors said during the council meeting. He reported governmental funds ending fund balances of $58,000,000, an increase of $15,000,000 from the previous year, and an unassigned general-fund balance of $21,600,000, approximately 20% of the town's operating budget.
Connors and Audit Committee Chair Jeff Wadovic both emphasized revenue drivers and one-time timing items. Connors said property-tax collections were unusually strong at 99.1% and that interest and departmental revenues were above budget. He also noted that some increases reflect restricted bond proceeds or grant funds rather than newly earned operating revenue. Wadovic pointed council members to the auditor's 10-year historical tables as useful context for budgeting.
During questions, Connors clarified the $15 million increase covers all governmental funds — including school department funds, ARPA balances and capital proceeds — and therefore does not imply those dollars are freely available for the town's general-purpose spending. The auditors reported ARPA spending of $3.3 million in FY2025 with roughly $1 million remaining as of June 30, 2025; CBIZ said they selected ARPA for single-audit testing and found no federal compliance exceptions for the sampled items.
The council moved to receive and accept the audit; the motion was seconded, and the ayes carried. The council also agreed to review the full report appendix, including the 10-year financial tables, as budget deliberations continue.
What's next: the town manager and finance director said they will incorporate the audit's context into upcoming budget work and public budget hearings scheduled for March and April.
