Hastings Utility Board reviews audited financials as cash is drawn down for capital projects

The Hastings Utility Board reviewed its audited fiscal 2024 financial statements and reconciliations Wednesday, receiving an unmodified opinion from the auditors and a presentation showing lower revenues, large capital reinvestment and a substantial drawdown of cash reserves.

Auditor Marcy Luth of AMGL told the board the primary drivers of the revenue decline were about a $4.3 million drop in SPP market sales and a $2.6 million fall in gas sales; expenses declined roughly in step and the utility’s net position rose about $3.7 million despite the revenue contraction. Luth said auditors proposed six adjustments that together increased net position by $420,000 and highlighted a $450,000 correction to the posting of unbilled accounts receivable.

The audit matters mattered because the board is weighing how much cash to commit to capital work now and when to consider issuing bonds. Board member Jeanette DeWalt asked at what point the utility should bond rather than spend cash; staff said bonding decisions are evaluated in the annual budget…