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Sanford audit shows rising revenues and strong fund balance; auditors report no disagreements
Summary
Joyce and Company presented the city's fiscal year 2023'024 audit to Sanford City Council, reporting increased revenues and expenditures, a larger available fund balance well above Local Government Commission guidance, and no audit disagreements in the governance letter.
The Sanford City Council received the independent audit for the fiscal year ending June 30, 2024, on Feb. 4. Joyce and Company partner Keith Joyce presented highlights to the council and said the firm found no disagreements with management during the audit.
Joyce said the city's general fund revenues increased by roughly $7.7 million and expenditures rose by about $8.9 million compared with the prior year. He said the city's total general fund balance reached about $39.8 million at year end and the reported available fund balance was roughly $25.3 million, equal to about 53% of expenditures and transfers out — well above the Local Government Commission's 25% benchmark.
The audit presentation broke down major revenue and spending trends. Joyce said ad valorem (property) taxes made up roughly half of general fund revenue and rose about $5 million from reassessment despite a lower tax rate. Other taxes and intergovernmental revenues also increased, with grant receipts and utility sales tax among contributors. On the expenditure side, public safety accounted for about 43% of general fund spending; capital outlay and general government costs also rose, in part because of higher salaries and project spending.
Joyce told the council the available fund balance calculation removes nonspendable amounts and statutory stabilizations, and he noted the city's policy target of 30% (with a 25% floor) that the council established before the city's first bond issuance. He also said some of the increased fund balance reflects unspent ARPA funds earmarked for specific projects such as the depot and an agricultural marketplace that remain budgeted but not yet expended.
On the audit's required communications to the council, Joyce said the firm issued a governance letter with no problems reported. "There were none, that we encountered no problems at all," he said during the presentation.
Council members asked clarifying questions about what a penny of tax revenue currently equals and whether the fund balance level posed any concern. Joyce said a penny is currently about $440,000 (subject to county estimates received in April) and that he had no concerns: the city's fund balance percentage is high relative to statewide comparators and above the LGC's guidance.
The audit and the governance letter will be part of the city's official records for FY 2024.
