During a recent government meeting, officials discussed critical financial assessments and corrective action plans aimed at improving the city's fiscal health. The meeting highlighted the current ratio of the city's assets to liabilities, revealing a concerning figure of 0.04, significantly below the target of 1. This indicates that the city has only 4% of the assets needed to cover its current liabilities, suggesting a pressing need for increased funding to meet financial obligations.

The meeting also addressed the status of pension funds, noting that the police pension plan is currently funded at 71%, down from 73%, primarily due to changes in discount rate assumptions. In contrast, the Allentown pension plan saw a slight improvement, rising to 39% funded, although this remains below the well-funded benchmark of 70%.

A significant focus was placed on the city's audit results, which revealed that $26 million in federal grants were expended, with an unmodified opinion on compliance. However, repeat findings from previous audits were noted, particularly concerning internal controls and grant management. The city has filed a corrective action plan to address these issues, which include improving vendor approval processes and ensuring timely bank reconciliations.

The corrective action plan, presented by finance officials, emphasized the need for better segregation of duties within payroll and procurement processes. The city has made strides in hiring key personnel to enhance financial oversight and accountability, with a commitment to resolving outstanding issues by the end of 2024.

Officials expressed optimism about the progress made thus far, acknowledging the challenges posed by previous administrative shortcomings. The meeting concluded with a commitment to transparency and ongoing improvements in financial management practices, aiming to restore public trust and ensure compliance with regulatory standards.