Annual Financial Audit Findings

At a glance

• What: Presentation of the Fiscal Year 2025 Annual Comprehensive Financial Report by the city's audit firm, CliftonLarsonAllen LLP, in its first year auditing Manchester.
• Where it stands: Unmodified (clean) opinion with five internal control findings and eight single audit findings. Credit ratings from Moody's and S&P were affirmed.
• Next: The Independent City Auditor will verify corrective actions in a month or two; training for officials within about a week.

October 6, 2026

• Hunt: unmodified opinion, "the best opinion available." Liabilities about $600 million, including bonds payable of about $220 million; net position deficit about $86 million (typical because of unfunded pension and retiree benefit liabilities). General fund balance about $37 million at June 30, 2025, with about $14 million unassigned, 7.2 percent of annual expenses (at least 5 percent is considered acceptable). The general fund rose about $1.5 million; revenues beat the budget by about $5 million. Enterprise funds: Water Works net position $102 million, Environmental Protection $190 million, airport $185 million. Outstanding long term debt about $589 million, with about $187 million issued in the year. Total pension liability about $260 million across three systems; retiree health liability about $38 million (the minutes also quote $34 million).
• Internal controls: five findings (three on account reconciliations, two on audit adjustments to the prior year); single audit of about $23 million in federal grants: six grants tested, eight findings. Hunt called them easy to correct and common with a new firm.
• Sapienza asked what the New Hampshire Retirement System liability means; Hunt said it is the City's share of a 30 year actuarial projection, not a check due. Terrio asked whether general obligation debt of about $305 million is excessive; Hunt said debt is "on the higher side" but judging it is outside the audit. Wickens said total debt includes the court mandated combined sewer overflow project and the airport.
• Ratings (communication from Wickens): Moody's and S&P affirmed the rating but noted high leverage; the City met Moody's that week.

Sources

• Board of Mayor and Aldermen minutes, October 6, 2026: https://manchesternh.api.civicclerk.com/v1/Meetings/GetMeetingFileStream(fileId=5366,plainText=false)

Log

2026-10-06 - Board of Mayor and Aldermen

Audit presented; ratings affirmed.