City of Poughkeepsie Releases Audited Financial Statements for 2018 General Fund, Deficit Declined by More than $6 Million over Three Years
City of Poughkeepsie officials today released audited financial statements for 2018 reflecting a sharp decline in the City’s General Fund deficit, from approximately $13.2 million at the end of 2015 to approximately $7.1 million at the end of 2018. Auditors also found the City’s General Fund cash position has improved by $1.8 million since the end of 2017. The audit was conducted by RBT CPAs, LLP.
Mayor Rob Rolison said, “This is the third consecutive year the City has out-performed when it comes to the important function of managing to our revenue and expense projections. The City’s Deficit Reduction Plan is a three-pronged approach toward rebuilding our fund balance by unwinding inter-fund receivables and payables, limiting non-essential borrowings, and crafting realistic budgets each year.”
Auditors found that the City’s receivables, funds it is owed by others, increased year-over-year, and recommended that the City complete a comprehensive inventory of all its assets to ensure they are not being understated on its balance sheet.
City Administrator Marc Nelson said, “When Moody’s Investors Service removed the City’s negative outlook in July, 2017, they said that further bond rating increases could result from a declining deficit and improving liquidity. We’ve checked those boxes and many more. The City has established reserve accounts for snow removal emergencies, employee benefits and judgment and claims, it has reduced its self-insured retention from $1 million to $500,000, closed its transit fund which had operated at a deficit for years, and built a multi-year record of successful and timely collective bargaining outcomes.”
Finance Commissioner William Brady said: “In addition to the very favorable audit findings, the City’s debt-service costs drop by more than $1 million next year. It would not be overstating things to say that we are witnessing one of the most remarkable turnarounds in a local government’s financial condition. Being a part of this work is the high-water point in my long career in public service.”
Read the full Audited Financial Statements Here:
About RBT CPAs, LLP
RBT CPAs, LLP has offices located at 11 Racquet Road, Newburgh, NY; 2678 South Road, Poughkeepsie, NY; and 51 Sullivan Street, Wurtsboro, NY. RBT provides accounting, auditing, tax and business consulting services to clients in the greater Hudson Valley, as well as in other areas of New York State, Connecticut and New Jersey.