Utica City Council accepts fiscal year 2025 auditor’s report

UTICA — During the Utica City Council’s Feb. 10 meeting, the presentation of the 2025 fiscal year auditor’s report noted growth in fund balances as well as some concerns with the audit process.

Yeo & Yeo performed the annual audit of the city of Utica’s financial statements for the fiscal year ending on June 30, 2025. Alan D. Panter, a representative with Yeo & Yeo, presented a summary of the audit during the meeting.

He said there were some issues with the audit process, though it was considered an on-time audit, as it was issued Dec. 23 and due to the state on Dec. 31.

“The audit was a little bit of a challenge this year,” Panter said. “Fieldwork was scheduled in October; it got pushed back to November. There was also a single audit, so that’s when the city expends over $750,000 of federal awards (that a single audit occurs). There needs to be that federal compliance audit, which was done, although we didn’t know that we were going to do it until we got into the work. So, that was a little bit of a surprise, but we got it done.”

Panter explained more about what was a surprise.

“It was a little slow getting us the stuff that we needed. The city did provide us with 23 journal entries after the trial balance was provided. So, that’s some accounting work and some extra work on our part to handle all those journal entries. So, 23 is more than usual, so that means that the closing of the books was happening while we were doing the audit. So, that’s not an optimal situation; you’d like to see those books closed before we start the audit.”

The current general fund balance was noted at $7,170,985. General fund revenue was $9,188,928 and expenditures were $8,552,392. Assets were totaled at $9,515,594, liabilities were $1,252,159, and deferred inflows of resources were $1,092,450.

This year’s fund balance equates to 84% of annual expenditures. Last year, that percentage was at 91% with a total fund balance of $6,534,453. A minimum of 20% to 25% for cash flow and operational purposes is recommended.

“You can see that the revenues have exceeded the expenditures every year . . . so your fund balance this year is, as we talked about, 84%,” Panter said. “Back in 2021, it was about half of what it is now. So, you guys have doubled your fund balance in five years.”

For the major streets fund, total assets were noted at $2,453,663 with liabilities noted at $1,955 and the fund balance at $2,451,708. Assets for nonmajor government funds were totaled at $1,519,375 with liabilities at $42,675 and the fund balance at $1,476,700. Total government funds were noted at $13,488,632 for assets with $1,296,789 for liabilities, $1,092,450 for deferred inflows of resources, and a total balance of $11,099,393.

In terms of details related to revenue, property tax is the largest source of revenue and continues to increase as it is consistently reaching over $4 million. Also from 2021 to 2025, intergovernmental revenue has been up and down, between over $1 million and $2 million, due to grants.

For expenditures, public safety is the largest expenditure as it continues to climb over $3 million and capital outlay has seen a spike, which is also likely affected by grants.

The water and sewer fund has seen various changes over the years, though for 2025, revenues and expenses are noted at over $4 million, with expenses more than revenues, while net investment in capital assets is over $2 million and restricted and unrestricted net position is noted at under $1 million.

“So every year, until this year, the revenues have exceeded the expenses, which means you’re operating at a net, I don’t want to say profit, but you’re bringing in more than you’re sending out, but this year, there was a lot of repairs that were done,” Panter said of the water and sewer fund. “So, that’s why your expenses are higher.”

A single audit was required due to the city expending enough of the federal dollars required for the single audit. Total federal expenditures were recorded at $1,219,740, with most of it through the assistance to firefighters grant.

The audit provided the information on deficiencies for the 2025 audit related to how the books for the year were closed, and how the grants were reported. This is related to the timeframe of how the audit was conducted and how necessary information was provided or not provided.

“I know . . . one of the delays we had was during the government shutdown,” Mayor Gus Calandrino said. “We had some challenges trying to get on portals. I know Mr. (Philip) Paternoster, (Utica finance director/treasurer), was pulling his hair out during that time.”

The City Council unanimously accepted the report, and a summary is available for viewing on the city of Utica’s website by selecting the Munetrix Dashboard link, then the Open Data Documents & Links, then the Audit Reports.

For more information, visit cityofutica.org.