Auditor issues unmodified opinion on South Burlington FY25 finances; ARPA accounting adjusted

RHR Smith presented the city’s FY25 audit to the council on Feb. 2 and delivered an unmodified (clean) opinion on the financial statements and the single‑audit testing for federal programs. Audit manager John Boulet highlighted a roughly $4 million increase in general‑fund cash compared with the prior year and an overall governmental fund balance increase of roughly $5.6 million over the prior year.

Auditors explained an accounting reclassification that shifted approximately $3.5–$4.3 million in ARPA fund balance into a deferred‑revenue line to better smooth recognition of that federal funding as it is spent in subsequent years. The audit found no material weaknesses or significant deficiencies and no findings for the major federal program tested (highway planning and construction). Debt activity noted in the report included water‑sewer bond proceeds that will be reflected in enterprise‑fund statements and amortized over future years. John Boulet told the council that the increases in fund balance reflect a strong fiscal year and appropriate budget management.

Councilors asked clarifying questions about the makeup of the other governmental funds and specific items such as open‑space and TIF balances; finance director Martha and the auditor pointed to the fund‑breakout pages in the audit for more detail. The council accepted the audit presentation and thanked staff for a clean report.