City Audit for FY 2025 Finalized on Time

The completion of the 2025 municipal audit on time is welcome news before the Mayor and Common Council begin preparing a budget for the year that begins on July 1st. — John McNamara

Independent auditors delivered New Britain’s financial statements for the year ending June 30, 2025 to city officials and the state Office of Policy and Management ahead of a December 31st deadline after several years of the reports being filed late.

Material weaknesses and noncompliance found in prior years have been corrected, according to the CliftonLarsonAllen (CLA), the city’s auditing firm. Auditors found one remaining deficiency in “internal control over financial reporting” that was attributed to “a shortage in staffing.” Recommended in CLA’s Single Audit Report is a formal financial close process “to ensure each fund’s year-end balances are analyzed timely and corrected appropriately.”

Municipalities are expected to complete annual audits by December 31, six months after the close of the fiscal year. Last year’s audit came on March 31.

The audit examined the municipal budget of $269.5 million that set a property tax rate of 39.59 mills for the July 1, 2024-June 30, 2025 year. The tax collection rate “remained steady” at 96.33%.

The Financial Statements for Fiscal Year 2025 show general fund revenue increases of $11.1 million from a 1.31 mill rate increase adding $2.8 million, $4 million in additional earnings from interest income, $2.9 million in reimbursements for completed state-funded projects and a $1.4 million increase in police special duty funds from delinquent payments that were received in 2025.

Overall revenues for 2025 totaled $455.8 million including property taxes accounting for 34%, 51% from state and federal grants and external contributions and the balance from other sources.

The audit reported $295.7 million of long-term debt in bonds and outstanding notes, a decrease from $307.6 million in the previous year. The city’s long-term indebtedness for all government activities based on the city’s net position totals $626.374 million. As of last June 30th, fund balances increased to $40.56 million with $14 million in assigned and $26.5 million in unassigned balances.

In their management discussion, auditors discussed the current municipal budget set at $273,493,952, $3.8 million more than 2025. The mill rate dropped this year to 39.18 that was attributed to “a slight increase in property values and the use of $6.7 million in tax stabilization funding.”

The budget process for the 2027 fiscal year begins this month when the Board of Finance and Taxation receives estimates from the Board of Education and city departments.

This post originally published at http://nbpoliticus.com