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Auditors report clean draft opinion for Peekskill—s FY2023 but fund balance fell by $3.37M
Summary
City auditors told the Peekskill Common Council they are prepared to issue an unmodified (clean) opinion on the draft FY2023 financial statements and reported no material weaknesses; the presentation showed a small budgetary surplus ($346,199) but an overall decrease in the city—s fund balance of about $3,370,000.
The city—s auditors told the Common Council on Monday they are prepared to issue an unmodified opinion on Peekskill—s draft FY2023 financial statements and found no material weaknesses in internal controls.
Jeff Shaver of O—Connor Davies, the auditors on the engagement, said the firm was prepared to render "an unmodified opinion" on the draft statements, meaning the statements and disclosures are complete and fairly stated. He added the auditors did not identify fraud or significant difficulties with management during the audit.
The auditors walked the council through the major numbers. Revenues were reported at about $45.02 million versus a final budget of $45.12 million; expenditures were $48.707 million against a final budget of $48.885 million. The auditors highlighted a $346,199 budgetary surplus for the fiscal year, but explained that after using assigned balances and other adjustments the city—s fund balance declined by roughly $3,370,000 (from $17,836,000 at the start of the year to $14,465,000 at year end).
Shaver and his colleague recommended the council, staff and departments continue to monitor collections of delinquent real property taxes and consider routine in rem sales as a revenue collection tool. They also noted a positive variance in sales tax distributions that offset other shortfalls but underscored the city—s reliance on volatile revenues such as sales tax and transfer taxes.
City staff and councilors asked questions about the use and timing of remaining federal ARPA funds; auditors advised council to file required paperwork promptly to avoid expiration of roughly $2 million in unallocated ARPA funds.
The auditors said they will finalize the audit report and deliver the formal auditor—s report to those charged with governance once final review steps and any last adjustments are complete.
