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External auditors report unmodified opinion expected; county fund balance declined by about $8 million in fiscal year
Summary
External auditors told the Cayuga County Legislature they expect to issue a clean audit opinion but cautioned that the county used about $8 million of fund balance in the last year and that expenditures have been increasing faster than revenues.
Luke Malecki, engagement partner from the county’s external audit firm, and Amy (presenter surname not provided) briefed the Cayuga County Legislature on the status and results of the county audit. Malecki said auditors expect an unmodified (clean) opinion on the financial statements once outstanding foster‑care case files and a few component‑unit items are finalized, likely by September.
The auditors reported that heading into January 2024 the county’s total fund balance stood at about $42.1 million; during the fiscal year the county used approximately $8.0 million of that fund balance, leaving an ending fund balance of around $34.1 million. Total county expenditures for the year were reported at roughly $179.4 million. The auditors emphasized a multiyear trend in which revenues have grown more slowly than expenditures: average revenue growth over the recent three years was cited at about 4.3% while expenditures rose at about 7.4% annually over the same period.
Malecki highlighted that the county’s unassigned (available) fund balance is now about 14.3% of annual spending—well below the Government Finance Officers Association (GFOA) best‑practice target of roughly 17% (two months of spending). The auditors said that ongoing reliance on fund balance to cover operating gaps is not sustainable if the trend continues.
Auditors described several nonrecurring items that affected fiscal 2024 figures, including one‑time transfers to capital projects, ARPA‑related timing and unexpected mental‑health costs. They also noted increases in social‑service spending, foster care and Medicaid‑related costs as drivers of expenditure growth.
When asked about fiscal‑stress reporting, Malecki said the New York State Office of the State Comptroller (OSC) uses the county’s annual financial report (AFR) numbers to compute a fiscal‑stress score and that dipping into an unassigned deficit could trigger closer monitoring.
No formal county action was taken at the meeting; the auditors said they would finish remaining items and issue final reports when the outstanding foster‑care records are available.
