Jamestown auditors: 2024 shows $944,000 use of fund balance, ARPA funds drive testing
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Summary
External auditors told the Jamestown City Council that fiscal 2024 ended with a $944,000 draw on the general fund and that nearly $8.5 million in federal awards (largely ARPA-related) required expanded single-audit testing; auditors noted improved audit preparedness but retained an internal-control comment on segregation of duties.
The city's external auditor presented fiscal year 2024 financial statements and single-audit findings to the Jamestown City Council, reporting a $944,000 net use of general-fund balance for the year and saying the city's unassigned fund balance fell to just under $5.0 million.
The auditor said the city's schedule of federal expenditures for 2024 totaled "just shy of 8 and a half million dollars," a level that triggered testing of three federal programs rather than the single program usually tested. The auditor tied the elevated federal award totals to ARPA stimulus spending and said 2023 had roughly $10 million of ARPA activity while 2024 was closer to $5 million, which distorts year-to-year operational comparisons.
The presentation showed that while revenues and expenditures both declined in 2024 compared with the prior year (partly because less ARPA spending occurred), the adopted 2024 budget had forecast a $589,000 use of fund balance; actuals used about $944,000. That left Jamestown's unassigned fund balance at roughly 11% of annual spending, below the Government Finance Officers Association benchmark the auditor cited of about 16.67%.
The auditor emphasized roles and responsibilities, noting that "the city's financial statements ... are the property of and the responsibility of the city" while the auditor's role is to provide an independent opinion on those statements. He clarified that an audit provides "reasonable assurance" over amounts and is not a forensic fraud investigation unless specifically commissioned as such.
On internal controls, the auditor said a prior-year comment about segregation of duties remained in the report but also highlighted improvements in audit preparedness and record availability. He stated the audit was carried out with "full cooperation" and an "unlimited scope" in accessing records. The auditor also mentioned a management letter that will outline best-practice recommendations and any upcoming accounting-standard adoptions.
The auditor flagged a carry-forward issue from 2023: several projects had been mislabeled by fiscal-year timing and that labeling error appeared again in 2024; he said the matter has been carried forward but is not expected to recur. He also reported that NYSDOT/CHIPS compliance testing of state awards (about $2.5 million) produced no fines.
The presentation closed with the auditor's expectation that the city will return to a more timely audit schedule in coming years and an offer to answer follow-up questions; council members asked for clarifications on line items and communications going forward.
The council did not take formal action on audit findings during the presentation; follow-up items include implementing management-letter recommendations and monitoring fund-balance trends during the 2025 budget process.