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External audit: Prospect posts $529,897 increase to fund balances; clean opinion, minor recommendations
Summary
LBMC partner Bill Meyer presented a clean audit opinion at Prospect’s Feb. 26 special meeting, reporting $4.4 million in revenues, $3.9 million in expenditures and a $529,897 net increase in fund balances. The audit included routine internal control notes and showed reserves set aside for pension liabilities and capital projects.
Bill Meyer, partner at LBMC, presented Prospect’s annual financial audit at the Feb. 26 special meeting, delivering a clean opinion and walking council members through the key figures and required disclosures.
Meyer said the audit opinion is clean and noted that governmental financial statements must follow Governmental Accounting Standards Board requirements. On the fund‑accounting basis that the city uses for budgeting, the statements show $4,400,000 in revenues and $3,900,000 in expenditures, producing a net increase to fund balances of $529,897.
The audit disclosed required pension and other post‑employment benefit liabilities tied to the state plan; Meyer said 17 pages of the notes are dedicated to pension disclosures. The report also included a clean internal‑control opinion, with a short list of internal‑control recommendations on pages 55–56 that repeated prior‑year observations.
City finance staff reported investments of about $3.8 million with the Kentucky League of Cities pooled program, approximately $24,000 in checking, and a restricted reserve of roughly $1.2 million for the state pension shortfall. The city’s unrestricted balance was reported at about $2.6 million. Mayor and staff reported investment income of roughly $125,000 per year from reserves; January interest to date was reported at just under $106,000.
Meyer and council members noted the city incurred more than $200,000 in cleanup costs after an April tornado, and that litigation by LDG Development remains pending; motions for summary judgment are under consideration with a possible trial date in July if the court denies the motions.
Meyer closed by offering to answer follow‑up questions and by confirming the audit was issued under LBMC with a partner who had a conflict present at today’s meeting. Council members thanked Meyer for the report.
