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Port Jervis council accepts 2023 audit; auditors report net fund increase and no fraud
Summary
An independent auditor presented preliminary findings from the city's 2023 audit showing a net addition to the general fund balance of about $475,000 and an anticipated unmodified (clean) opinion; the council authorized finalization of the audit to avoid potential Moody's action.
The Port Jervis Common Council reviewed the city's draft audited financial statements for the fiscal year ended Dec. 31, 2023, and authorized staff to finalize the engagement with PFK O'Connor Davies CPAs after a presentation by the audit engagement partner.
Melissa Sott, engagement partner on the audit, told the council auditors anticipate issuing an unmodified opinion (a "clean" opinion) and said there were no identified instances of fraud or significant disagreements with management to date. She summarized fiscal-year results: total revenues of roughly $16.7 million, expenditures near budget, and an overall net addition of about $475,000 to the general fund balance for 2023. Sott attributed positive variances to higher investment earnings and mortgage tax receipts and noted timing-related differences in property-tax collections and sales-tax distribution.
Council members thanked the clerk's office and auditors for their work. Finance councilwoman Misty Fuller moved to approve the draft 2023 audited financial statements and to authorize the mayor or his designee to execute an engagement letter to finalize the audit; the motion was seconded and carried. Mayor Douglas Sickles warned the council that Moody's could begin rating actions on Aug. 1 if the audit was not completed promptly, emphasizing the need to finalize the audited statements ahead of that timetable.
The auditor also presented a five-year fund-balance history, details on functional expenditures (noting an approximately $600,000 overspend in public safety largely due to overtime and a 2023 task force), and a debt-service summary projecting average annual principal and interest payments of about $1.6 million through 2054.
The council directed staff to finalize the audit work and deliver the final audited financial statements to appropriate government authorities as required by state law.
— Reporting based on auditor presentation and council resolution recorded in the meeting transcript.
