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Evansville bond bank reports $11.5 million in net assets; auditor issues clean opinion with minor control items
Summary
The Evansville Local Public Improvement Bond Bank approved its financial report after receiving a presentation showing roughly $11.5 million in unrestricted net assets and higher investment income; auditors issued a clean 2023 opinion while noting several control deficiencies and $9,055 in adjusting entries.
The Evansville Local Public Improvement Bond Bank approved its financial report after hearing September 30 financials that show roughly $4.9 million in cash and cash equivalents, about $3.25 million in certificates of deposit and approximately $11.5 million in unrestricted net assets.
Cody Holtman, the bond bank's accountant and internal auditor, told the board the bank had about $319,000 in current notes receivable, just under $100,000 in interest receivable, and year-to-date revenue near $300,000. Holtman said operating cash was negative about $100,000 year to date and that investing activity showed a net movement of roughly $155,000 out of cash into certificates of deposit.
Auditor Ashley Schultz, vice president on the engagement, presented the 2023 audit and said the firm issued a clean opinion. Schultz noted management had elected not to include a management's discussion and analysis (MD&A) in the financial statements. The audit identified several internal control deficiencies tied to the prior-year trial-balance conversion to accrual accounting, incomplete accruals for interest and audit fees, and an item related to the Fifth and Main bond anticipation note that could reflect about $34,000 of overstatement. Adjusting journal entries proposed by the auditors had a net effect of $9,055.
Board members asked questions about the sources of higher investment income and the composition of cash equivalents; Holtman said money-market investments in Trust Indiana and the Hoosier Fund were paying about 5.2%–5.4% at the time of the meeting, contributing to stronger investment returns.
The board moved and approved the financial report by voice. The auditor's letters, including the audit committee letter describing adjusting journal entries and the management letter outlining control deficiencies, were also presented and accepted.
Next steps noted by the board included continued conversion to accrual accounting for internal reporting and monitoring of loan receivables and interest accruals identified by auditors. The bank scheduled its next regular meeting for December 18 at 10:30 a.m.
