Hopewell finance director reports improving revenues, timetable to complete delayed audits

The city’s finance director told council Tuesday that citywide revenues are trending higher year-over-year in May and provided a timetable to clear a backlog of annual comprehensive financial reports (ACFRs).

Stacy Jordan said May revenues were roughly $1.2 million (0.42%) higher for the current fiscal year compared with last year, while expenses were running higher primarily because of salary increases and some one-time payments. The general fund is projected to end the fiscal year with available cash and a projected bank balance of about $21.6 million, Jordan said.

Jordan provided a schedule for completing outstanding audits: FY2022 targeted for completion by June 30, 2025; FY2023 by Sept. 30, 2025; and FY2024 by Dec. 31, 2025. The city intends to be back on a timely schedule for FY2026. She told council that the majority of outstanding audit paperwork has been located and that outside contractors had committed to provide missing material by the end of the week.

Councilor questions focused on the composition of revenue and expense changes, accounting for school payroll and timing of capital reimbursements. Jordan explained school expenses are being integrated into the city’s financial system and that some enterprise capital outlays (for example, a new compressor for the water-renewal plant) are expected to be reimbursed to capital accounts.

What’s next: Jordan said the CSA supplemental and other work-session items will return for formal vote at a future meeting; council will continue to monitor ACFR progress and audit timeliness as a factor in bond-rating discussions.