External auditor gives Sullivan County a clean opinion, warns of fiscal pressures and nursing home deficit

Drescher Malecki, the county——s external auditor, issued an unmodified opinion on Sullivan County—s financial statements for the year ended Dec. 31, 2024, and told the Sullivan County Legislature on Monday that the county faces several near-term fiscal pressures, including a flattening in sales-tax growth and the tapering of federal pandemic-era funding.

The clean audit means "we believe that the financial statements of Sullivan County for the year ended 12/31/2024 are fairly stated and can be relied upon," Matt Montalvo, partner at Drescher Malecki, told legislators. He said the audit found no material weaknesses or reportable findings and that the firm will send a management letter with recommended best practices.

Montalvo said the county posted a general fund surplus of about $8 million in 2024 and a total fund balance of roughly $95 million, but cautioned those cushions are likely to be tested in coming years. "Sales tax, which is your biggest non-property revenue source, is running flat and may start to decrease," he said. He added that much of the uptick in federal revenue resulted from stimulus and ARPA funds that are now waning.

Why it matters: sales tax and federal aid have been the top drivers of the county's recent surpluses;…