The Financial Audit Advisory Committee held a Fiscal Year 2024 ACFR Exit Conference with CLA CPA consultants (see the report and watch the meeting video) where they reviewed:
- Financial Highlights: “the City has $1.2 billion in liabilities, which is largely unchanged from the prior year, but experienced a significant decrease in net OPEB (Other Post Employment Benefits) liability due to a change in the City’s discount rate from 3.65% (municipal funds rate) to 6.00% (investment rate of return), a much more favorable rate for the City. This is the most significant change in the City’s financial statements from 2023 to 2024 from a long-term financial view.” The accountants “considered the unassigned fund balance, which matters to bond rating agencies, the most significant figure in the financial statements. Due to the movement of the $22 million from unassigned to committed” (the Educational Stabilization Fund), the “unassigned fund balance as a percent of total revenues dropped from 15.1% to 11.3%, but this should not be a concern once explained.”
Liabilities: $1.2 billion of which Bonds payable are $300 million; Net OPEB liability is $455 million ($205 million decrease from the prior year) and Net pension liability is $296 million ($15 million decrease from the prior year)
Total expenses: $531 million, of which Education is $324 million, or 61%
Total revenues and transfers: $647 million, of which Program revenues are $161 million (including State Aid/Grants/Gifts for education: $92 million) and General revenues and transfers are $486 million (including Real estate: $426 million)
- Management Letter Recommendations: review and reconcile off-lease dog licenses; review Health insurance Fund trends for anomalies; consider implementing an automated system to track capital asset depreciation; review pricing, class size, indirect and other costs of the Newton Community Education Program; “continue the process of MUNIS general billing and move forward with integration of police details when appropriate.”
- Consideration of External Auditor Contract Renewal: After reviewing the performance and compliance of the current external auditor, Johnson Lambert LLP, it was decided that no action was necessary at this time, with the contract set to continue as per the existing terms.
Overall, there were no significant findings regarding internal controls or financial statements.
The Committee will meet on April 9, 2025, to discuss FY 24 single audit results and FY 25 audit
planning.
Present: Councilor Malakie (Chair); Councilor Lipof; Councilor Oliver; Carl Valente, Citizen
Representative; Alex Jablon, Citizen Representative; and JP Nahmias, Citizen Representative
Also present: Comptroller Stephen Curley, Deputy Comptroller Stela Zaloshnja, Accountant Jim
Piotrowski and Accountant Zack Fentross.