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Independent auditors give Grand Island a clean opinion; general fund balance declines
Summary
EFPR Group told the Grand Island Town Board it issued an unmodified opinion on the town's 2024 financial statements, noting a drop in certain revenues and a decrease in the general fund balance largely driven by reduced federal aid.
John Costello of EFPR Group told the Grand Island Town Board that EFPR completed its audit of the town's financial statements for the year ended Dec. 31, 2024, and issued an unmodified (clean) opinion on July 18, 2025. He said the audit found no instances of noncompliance that must be reported under Government Auditing Standards and that auditors received full access to requested records.
The audit shows the townwide net position of $33,900,000, an increase of $1,600,000 (4.9%) from the prior year. Total townwide revenue was $27,100,000, a decrease of $2,600,000 (8.8%), which Costello attributed primarily to a drop in donated infrastructure. Total costs of town programs rose to $25,500,000, up $1,800,000 (7.7%), driven by higher contractual, payroll and employee benefit costs. Property tax revenue rose by $152,000 (3.1%) and remained within the town's tax cap.
At the fund level, EFPR reported the general fund balance at $8,700,000, down $543,000 (5.9%). General fund revenue was $9,900,000, a slight decline from the prior year that the auditors said primarily reflected decreased federal aid (including ARPA-related funding). General fund expenditures were $10,300,000, an increase of $972,000 (10.4%), with increases in personnel services ($319,000), contractual services ($393,000) and employee benefits ($189,000).
Other fund highlights included an increase of $114,000 in the highway fund balance and $141,000 in the water district; the sewer district decreased by $500,000. The capital projects fund deficit grew by $494,000; auditors said that deficit stems from short-term liabilities in the form of bond anticipation notes used to finance assessable improvement projects. Costello said management's cooperation was "excellent" and that the engagement letter dated Jan. 22, 2025, describes the respective responsibilities and independence requirements.
During questions from board members about sales tax, Costello said there was "no material decrease in sales tax revenue" and reiterated that the reduced federal aid was a major driving factor behind year-over-year revenue declines. He closed by inviting board members to contact him or the town's finance contact with follow-up questions.
