Auditor reports Perry’s 2023–24 finances show solid reserves despite storm costs

Powell Jones CPA presented the City of Perry’s fiscal year 2023–24 financial audit at the July 22 council meeting, reporting positive operating results, multi-fund reserves and no reportable compliance failures for major federal programs. The auditor, Caleb Cardwell of Powell Jones CPA, led council through the independent audit report and summarized notable figures: governmental funds showed $6.0 million in cash and total assets of about $9.16 million; unassigned fund balance in governmental funds was approximately $2.48 million (about one year of governmental fund expenditures). Proprietary (utility) funds held roughly $6.9 million in cash and $32.7 million in capital assets, producing total assets of about $42.7 million and unrestricted net position of $7.8 million—again about one year of operating expenses, Cardwell said. Key findings: Cardwell said the firm issued an unmodified opinion “in all material respects” on the city’s financial statements and found no material noncompliance in the single-audit procedures for the city’s major federal programs. The auditor noted that federal awards expenditures exceeded the single-audit threshold and that the drinking-water SRF loan/forgiveness program was selected as a major program for testing. Budget and operating results: The presentation showed governmental funds spent roughly $9.58 million against $8.00 million in revenues, a deficit partly addressed by net transfers and other financing sources, producing a year-end net decrease in fund balances of about $397,000 overall, with the general fund up $288,000 after transfers. Proprietary funds (utilities) recorded operating revenues of about $8.2 million and operating expenses near $7.35 million, producing a net increase in net position to about $33.9 million. Context and next steps: Cardwell thanked city finance staff for their work switching accounting systems and managing storm-related costs. The audit report includes notes and schedules (debt, pension and OPEB disclosures) and the auditor recommended council and staff review the notes for details on debt terms and pension actuarial assumptions. Council accepted the presentation and had no further questions.