City auditor gives Paducah a clean opinion on 2023-24 finances; officials note multiyear surplus

David Hampton, a partner with Kemper CPA Group, told the Paducah Board of Commissioners on Jan. 13 that the city's annual comprehensive financial statements for the fiscal year ending June 30, 2024, received an unmodified (clean) opinion.

The audit, Hampton said, found the financial statements to be "fairly presented in all material respects," and the auditors reported no instances of noncompliance required to be disclosed under governmental auditing standards or under the Uniform Guidance for federal awards. Hampton said the firm applied limited procedures to management's discussion and analysis and supplemental schedules but did not audit those sections.

The clean opinion matters because it signals to residents, lenders and grantors that the city's financial statements conform to accounting standards. "We've determined these statements are fairly presented in all material respect," Hampton said during the presentation.

Nut graf: The audit presentation confirmed Paducah has recorded several consecutive budget surpluses, information commissioners said they are using to set aside funds for capital projects and to buffer for unplanned events.

City staff and commissioners discussed the city's recent run of surpluses. A city finance staff member identified in the meeting as John said fiscal 2024 was "not as strong perhaps as 23" for the general fund but noted the city still recorded a surplus. He added the commission has used set-aside surplus funds in the current budget to cover capital projects: "In fact, the year we're in right now, we were able to use 8 and a half $1,000,000 of our surplus funds that we put aside in the current budget to address some of those capital projects," John said.

Hampton walked the commission through the report structure and required sections, including the single-audit report required when an entity expends more than $750,000 in federal awards. "In our opinion, the city has complied in all material respects with the types of compliance that could have a direct or material effect on each of its major federal programs," he said.

Commissioners thanked the finance staff for their work preparing materials and responding to auditor requests. Mayor Bray and other commissioners emphasized the value of audited financial statements in validating use of taxpayer funds and noted the surplus provides flexibility to respond to emergencies or invest in capital needs.

Ending: Hampton offered to answer follow-up questions after the meeting and said the management discussion and analysis included in the report provides comparative year-to-year financial information on pages 14 through 29 of the city's report.