Auditor General issues informational report providing 5-year financial trend data for Rhode Island’s 39 municipalities for audited fiscal years 2019 through 2023

STATE HOUSE – In conjunction with its responsibilities under Rhode Island General Laws to monitor certain aspects of municipal finances, the Office of the Auditor General has issued a report to highlight municipality fiscal trends over a 5-year period. The report issued by Auditor General David A. Bergantino and released today by the Joint Committee on Legislative Services includes summarized audited financial data for each Rhode Island municipality for fiscal years 2019 through 2023 (when available). The objective of the report is to detail certain key financial benchmarks over time and highlight positive and negative trends observed in the data. By highlighting negative trends, decision-makers can be made aware of potential fiscal problems and implement corrective actions in a timely manner.

The financial data reported serves to provide information to aid municipal decision-makers in evaluating some important financial considerations, including but not limited to the following:

1) Does the city/town have timely and reliable audited financial data available to make decisions?

2) What do the financial results for the general and school funds indicate about the reasonableness of, or the ability to comply with the adopted budget?

3) Is the municipality maintaining sufficient general fund reserves based on the risk landscape for the city or town?

4) How does the municipality’s funding of education compare to its peers?

5) Are increases in debt requiring more budgetary resources over time?

6) How have bond rating agencies viewed the municipality in recent years?

7) Is the city/town currently funding pension and OPEB benefits in a manner that will ensure that resources will be available to meet those future commitments to employees?

8) Are pension and OPEB benefits requiring more municipal resources over time leaving less resources for other government services?

The report includes an executive summary, which provides an introduction, observations, and recommendations for consideration. The report includes 2-3 pages summarizing important financial trend data for each of Rhode Island’s 39 municipalities with highlights summarized for each. In addition, the report includes appendices detailing specific financial benchmarks with municipality results, ranked in order, for comparison purposes.

The summarized financial information included in the report is designed to be an aid for decision-makers (i.e., General Assembly, City/Town Council Members, School Committee Members, and municipality and school management) in carrying out their governance responsibilities.

The full report is available at the Auditor General’s website, Municipality Financial Data Trend Report, Fiscal Years 2019-2023.