FOR IMMEDIATE RELEASE
January 23, 2017
Contact: Katie Vane
802.734.0617
Mayor’s Statement on City of Burlington Fiscal Year 2016 Audit
Confirms All 12 Material Weaknesses Identified in 2012 Have Been Addressed; Unassigned Fund Balance Has Exceeded Target
Burlington, VT – At the City Council meeting on Monday, January 23, 2017, Council will be asked to accept and approve the Fiscal Year 2016 (FY16) audit and management letter. These documents represent significant financial progress for the City in two respects:
- First, the deficiencies identified by the City’s auditor in 2012 have been almost entirely addressed, with a decrease from 27 findings to two, and from 12 material weaknesses to zero.
- Second, the FY16 audit also confirms that, as of the end of FY16, the City has approximately $6.5 million in its General Fund unassigned fund balance. This exceeds the target of 10 percent of the City’s FY16 total operating expenditures (or approximately $5.8 million) by $700,000.
City Council approved the Fund Balance Policy establishing an unassigned fund balance target in 2015 with the intent to achieve a minimum positive unassigned fund balance from the previous year’s General Fund operating expenditures. The unassigned fund balance allows the City to mitigate negative revenue implications of federal or state budget actions, mitigate economic downturns, fund disaster or emergency costs, provide funds for cash flow timing discrepancies, and fund non-recurring expenses identified as necessary by City Council.
Mayor Miro Weinberger released the following statement regarding the FY16 audit:
“Tonight’s audit and management letter are another significant milestone on the City’s road to financial recovery. These documents confirm that the City has addressed nearly all of the findings from the 2012 audit and met our ambitious, recently developed Fund Balance goals. This progress could not have been possible without the sustained focus of the City Council, the hard work of the CAO’s Office, and the strong commitment of the people of Burlington to restoring our good financial name.”
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