POUGHKEEPSIE – The State Comptroller’s
Office says the City of Poughkeepsie has made “some improvements”
in its financial operations.
The assessment came following a January review of the progress in implementing
recommendations after a May 2013 audit of the city’s finances.
Of the seven audit recommendations, three were fully implemented and three
were partially implemented. One was not implemented.
The initial audit said when addressing the general fund deficit, the common
council should take steps to reduce the deficit in the general fund. That
has been fully implemented.
Based on the 2013 audit, the city had a general fund operating surplus
of $813,801 and the general fund deficit was reduced by $689,995. Financial
results included one-time revenues of $1.73 million from the sale of two
properties. The city administrator said Poughkeepsie is in the process
of developing a multi-year financial plan with the assistance of an external
financial advisor to further reduce the general fund deficit.
The auditors also said the city council should require the mayor to prepare
a realistic budget based on the prior year’s actual results, for
the city council to approve and monitor throughout the year.
Corrective action was partially implemented, state officials said.
The city’s 2015 adopted budget “does not appear to be realistic,”
state officials said. The mayor’s budget “appeared to be structurally
balanced” based on the prior year’s spending plan, but the
common council added $328,000 with lawmakers balancing the spending plan
with $1 million in revenues from property sales. The mayor vetoed that,
but the council overrode it. “If the $1 million revenue is not realized,
the city could face a significant deficit in 2015,” auditors said.
The city has fully implemented a recommendation to develop a comprehensive
plan to reduce outstanding debt.
A recommendation for the council to authorize all interfund loans prior
to them being made, maintain “proper records” and ensure the
loans are repaid by the end of the fiscal year has not been implemented
auditors said.
Another recommendation, to require the mayor and finance commissioner
to prepare periodic and timely reports for the council has been fully
implemented.
A condition that the council should require the commissioner to provide
timely audited financial statements has been partially implemented.
State investigators also recommended the council should adopt financial
policies pertaining to fund balance and interfund transfers and that has
been partially implemented.
451-7577.
