By Pamela Permar-Shierling
Yesterday, Sept. 2, during the Brunswick City Commission work session city auditors Mauldin & Jenkins presented their Financial and Compliance Audit for the City of Brunswick for the fiscal year ending June 20, 2025.
CPA Kirk Arich told the commission the audit reflects an unmodified or clean opinion which, he said, means that the financial statements are fairly presented in all material respects in accordance with GAAP (Generally Accepted Accounting Principles).
The city’s fiscal year financials show a $3.7 million net revenues over expenses.
The city’s assets have increased since 2022 while their liabilities have decreased.
The city ended FY 2025 with a $12.7 million fund balance; $12 million of that is unassigned. The general fund balance decreased by $4.2 million. However the expenses were known and included in the budget.
The city has 6.3 months of operating expenses in the unassigned fund balance. According to Arich four to six months of operating fund balance is recommended for coastal communities.
There were two findings: one was the year end close out and audit readiness needed an extension and the audit was not filed on time for the second year in a row.
The second finding was in the area of federal grants. A subcontractor did not file on a timely basis the required certified payroll information that the CDBG-DR grant requires.
Not audit findings but recommended improvements include a fund balance policy which management has drafted.
