Bridgeport council accepts FY2024 audited financial report after clean opinion from auditors

The Bridgeport City Council voted unanimously to accept the city's audited financial report for the fiscal year ended Sept. 30, 2024, following a presentation by the city's independent auditors.

Daniel Hungerford, an auditor with George, Morgan & Snead, told the council the firm issued a clean opinion on the city's financial statements, saying the statements are "fairly stated in accordance with generally accepted accounting principles." He reviewed major fund results and compliance work during his presentation.

Hungerford said the general fund had about $2,600,000 in unassigned fund balance, roughly 32% of general fund expenditures, and reported general fund revenues of about $7,054,000. He said property values rose about $120 million but the city reduced its maintenance and operations tax rate while still realizing about $30,000 more in property tax revenue. Sales tax receipts were reported at about $2,086,000, up roughly $87,000 from the prior year.

The auditor noted the city's general fund expenses increased by about $1,120,000, driven by new hires, payroll increases and fleet management costs, producing a net decrease in the general fund balance of about $396,000 for the year. Capital projects carried forward approximately $3,200,000, with a $2,100,000 decrease during the year primarily tied to street projects, the presentation said.

Hungerford described enterprise-fund results, saying the water and wastewater and the airport funds had negative unrestricted net position, while the electric fund had about $2,300,000 in unrestricted net position. He said operating income for the water and wastewater fund was a negative $387,000 and the airport fund a negative $77,000, and that the electric fund had an operating income of about $495,000 after rate increases and higher sales.

The auditors performed a single-audit over the city's federal awards because the city spent more than the federal audit threshold on federal programs. Hungerford said the coronavirus state and local fiscal recovery funds (the ARPA-like CSFRF program) was the major program, that the city spent about $1.4 million from that source and closed the project, and that the audit found no compliance exceptions.

Hungerford also reported about 26 audit adjustments to year-end balances but said the audit found no material weaknesses or significant deficiencies in internal control that warranted a formal finding.

Councilmember Barbara Rodriguez moved to approve the audited financial report; Councilmember Matt Van Hoose seconded. The motion passed 5-0.

The council discussion that followed focused on the presentation and the auditors' findings; staff indicated the city will continue monitoring enterprise fund positions and capital project spending as it budgets for the coming year.

Council members present for the vote included Mayor Kessel; Councilmembers Susan Kaufman, Preston Brown, Barbara Rodriguez and Matt Van Hoose.