Ann Gallelli: Village Gets Clean Bill of Health from Auditor

To the Editor,

As it does every year, the Village Board reviewed the Village’s annual Audit Report from its auditor, PKF O’Connor Davies. Alan Kassay, CPA and Partner, went through his firm’s report for the fiscal year ending May 31, 2021. Mr. Kassay noted that it was a very “clean” report which is the best opinion that can be received. He noted that Manager Healy and Treasurer Tucker have made for a very smooth transition in this regard.

The audit report includes three basic components – government-wide financial statements, fund financial statements, and auditor’s notes to the financial statements.

The government-wide statements are primarily those functions supported by taxes including public safety, health, transportation, economic opportunity/development, culture and recreation, home and community services and interest. For FY 20/21, revenues from governmental activities totaled $23,720,682 with tax revenues of $14,309,365 or 60% of total revenues.

The Village has 6 individual government funds: General, Water, Debt Service, Capital Projects, Special Purpose and Sewer. The first four are considered major funds for which the Village adopts an annual budget. Within the General Fund, where most of the operating expenses are found, there are also several types of Fund Balance classifications – Nonspendable (ex. – prepaid items), Restricted (ex. – benefits, debt service, capital projects), Assigned (ex. – encumbrances such as future retirements, Water and Sewer fund), and Unassigned (ex. – residual, not otherwise designated).

At the end of the 2020/2021 fiscal year, the Village reported an Unassigned Fund Balance of $3,807,378, the amount available for discretionary uses. Mr. Kassay noted that this was within our Fund Balance policy of 17 to 22% of the total budget and left the Village in a good position for the following fiscal year. Noting that, due mostly to COVID-related circumstances, revenues were down $2.5 million and revenue predictions were hard to make, but due to our conservative budgeting the Village still performed well. The Board is now beginning budget preparation for the FY 2022/2023 budget. These annual analyses of prior budgets and financial statements provide useful information in understanding and decision-making on individual components of the budget ahead of us.

Ann Gallelli, Trustee

Village of Croton-on-Hudson

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