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Cochran council hears clean audit showing $1.92 million fund increase driven by ARPA funds
Summary
The City of Cochran received a clean FY2023–24 audit reporting a $1,924,818 net increase in fund balance largely attributed to ARPA dollars; council members pressed auditors on uncollectible utility accounts and expenditure accounting for capital purchases.
The Cochran City Council received a clean FY2023–24 audit report at its Jan. 14 regular meeting that showed a $1,924,818 net change in fund balance, a figure the auditor said was driven in large part by federal ARPA funds.
Greg Chapman of Nichols Cauley Accounting Firm presented the audit, telling the council the firm issued an unmodified opinion and submitted its report on time to the Department of Law. Chapman outlined capital investments recorded in the year: about $931,000 for public safety and public works, roughly $615,000 for infrastructure, and $57,000 for water and gas equipment.
Council members used the presentation to press for clarification on several items. Council Member Shane Savant questioned how the fire-truck expenditure had been accounted for; Council Member Carla Coley raised concerns about revenue-recognition risks. Chapman and staff also discussed uncollectible utility accounts, which were characterized in the audit discussion as exceeding $1 million, and explained the sampling methodology used during the review.
The audit presentation concluded with officials saying the city received full management cooperation and the auditors maintained independence throughout the engagement. No disagreements on accounting matters were reported.
Next steps: the council received the report and did not vote to change the audit; any follow-up requested by council members will be handled by staff before the next meeting.
