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Port Jervis council approves $40,000 to finish 2023 reconciliation after Moody's notice
Summary
Finance chair said auditors paused the city's 2023 audit and Moody's notified the city it may suspend its rating; council approved a $40,000 allocation from contingency (amended for an accounting firm) to complete outstanding reconciliation items and file the 2023 AFR.
Mrs. Fuller, speaking as the finance representative to the council, told members the council had "inherited a tremendous amount of issues" in the city clerk's office and that outside accountants had been retained to help close the 2023 books.
Fuller said O'Connor Davies stopped the audit midway and issued a punch list of items the city must resolve before the audit can continue. She told the council the city had filed its 2023 AFR with New York State with help from RBT but still faced a pending 2024 AFR and that Moody's had sent a notice stating, in effect, that without reconciliation of the 2023 books Moody's could suspend the city's rating in 30 days.
To address the issue, Fuller moved for an additional $40,000 to continue or reengage accounting support; councilmembers amended the motion to allocate the funds to an accounting firm (not limited to a named vendor), and the council approved the allocation from the contingency fund on a voice vote. Council members said acting quickly was necessary to protect the city's bond rating and ongoing grant and loan eligibility.
Council did not name a specific firm at the meeting; Fuller said part of the funds would be used to have RBT file the 2024 AFR and to complete the punch list items so the audit and state reporting would not be further delayed.
