Auditor issues clean opinion on Utica's FY2024 financial statements, flags late bank reconciliations

Alan Panter, a partner at auditing firm Yo and Yo, told the Utica City Council on Jan. 14 that the FY2024 financial statements received an "unmodified or clean opinion," the highest standard auditors can issue. Panter said the audit was completed and issued Dec. 18, 2024, and that the general fund ended the year with roughly $6.5 million in total fund balance, about 91% of annual expenditures.

Panter reviewed trends shown in the audit presentation: a modest 2% increase in total revenues (driven in part by improved investment income and the closeout transfer of a senior housing fund), higher expenditures reflecting public works work and a transfer for a sewer relining project, and a strengthened water and sewer enterprise fund that moved from an unrestricted deficit to a positive unrestricted net position in FY2024.

Panter said the audit included one management letter comment: the city's bank reconciliations had fallen behind, in part because the deputy treasurer position became vacant and June reconciliations were not received by auditors until late November. He also noted a change in accounting standards requiring capitalization of library books; the city implemented that retroactively.

Council voted unanimously to receive and file the audited financial statements. The council and staff thanked auditors and staff for the work; Panter identified Phil Paternoster and Lori Cook and their teams for assistance during the audit.

Panter summarized his assessment: "We're giving what's called an unmodified or clean opinion. That is the best opinion you can get." He recommended continuing attention to internal controls and bank reconciliation timeliness.

The council directed staff to file the audit in the official record and to follow up on the management-letter item.