Port Jervis auditors report $1.3 million increase to general fund; council approves 2024 audit draft

Melissa Zott, engagement partner for PKF O'Connor Davies, told the Port Jervis Common Council on April 13 that the city ended 2024 with a stronger-than-expected general fund balance, rising by about $1.3 million to nearly $5.1 million.

Zott said the audit draft will be issued with an unmodified opinion and that the firm found no instances of fraud to report. She walked the council through revenue and expenditure variances that produced the improvement: revenues were about $17.6 million compared with a budgeted $17.3 million, while expenditures were roughly $16.3 million—creating budgetary savings in areas including general government support and employee benefits.

"You ended the year at almost 5,100,000," Zott said, summarizing the fund-balance result. She noted line-item details the council should watch going forward: sales tax receipts trailed budget by roughly $514,000 while real-property tax collections were about $436,000 above expectations; police-related fee reimbursements also helped, and some capital-project transfers budgeted in 2024 were not spent.

The council subsequently approved a resolution directing the mayor or designee to execute an engagement letter with PKF O'Connor Davies to prepare and deliver the final audited financial statement for the fiscal year ending 2024. Finance staff also presented a summary of the city's debt-service schedule and five-year fund-balance history, and Zott emphasized the need to maintain tone-at-the-top controls and periodic review of internal financial controls.

Council action: the Common Council voted to approve the draft 2024 audited financial statements and authorized the administration to finalize and file the report with the appropriate authorities.

What happens next: PKF O'Connor Davies will finalize the audit report and the city will deliver the final statements to state and other required authorities.