The Penn Yan Village Board held a special meeting shortly before Thanksgiving to review the 2024–2025 fiscal year audit, with representatives from BST & Co. reporting an unmodified, or clean, opinion on all audited financial statements and confirming the village’s strong financial standing.
Brendan Kennedy and Jeremy DeBarr of BST presented the findings to the board, noting that the audit was conducted in accordance with Generally Accepted Accounting Principles (GAAP) and Government Auditing Standards. The audit covered seven opinion units, including governmental and business-type activities, as well as the general, water, sewer, and electric funds.
Because the village received more than $750,000 in federal and state aid, a Single Audit was required. BST confirmed that an unmodified opinion was also issued for compliance with those funding requirements. Kennedy said this level of review won’t necessarily be required every year, but Clerk/Treasurer Holly Easling indicated it is expected to continue due to the number of grants being administered.
General and capital fund updates show strong fiscal health
The audit showed a surplus in the General Fund, where revenues and other financing sources exceeded expenditures by $691,000. The unassigned fund balance totaled $3 million, or 52.74% of annual expenditures. Easling stated that a portion of the surplus was used in the 2025–2026 budget and any additional funds would be considered for long-term projects and reserves. Kennedy confirmed the General Fund appears to be in strong financial condition.
In the Capital Projects Fund, a deficit was attributed to $1.18 million in outstanding Bond Anticipation Notes (BANs), which are expected to be refinanced or repaid long-term. Major expenditures included:
- $190,000 for a Village Hall generator
- $190,000 for Downtown Revitalization Initiative (DRI) streetscape improvements
- $188,000 for DRI pedestrian enhancements
- $416,000 for DRI parks and trails
Easling clarified that these capital projects are reimbursed through grants or financed by debt service.
Utility funds also report surpluses, infrastructure investments
The Water Fund recorded a $1.37 million increase in net position, with $970,000 invested in capital assets and $176,000 in debt principal payments. Easling noted that interest rates on outstanding bonds have risen to 4%, which Kennedy confirmed is higher than in previous years.
Similarly, the Sewer Fund also reported a $1.37 million increase in net position. The report cited $1.09 million in federal revenue to support infrastructure improvements, including the UV disinfection project and sanitary sewer slip lining. The fund invested $2.55 million in capital assets, with $252,000 in debt principal payments. Most outstanding debt is held through Environmental Facilities Corporation loans at 0% interest.
The Electric Fund showed a $395,000 surplus, supported by increased rates that took effect in July 2024. The fund also issued $1.5 million in new BANs and reported total outstanding BANs of $3.09 million with 4% interest. Easling was recognized for conducting the required rate study in-house, avoiding the typical $30,000 outsourcing cost. Trustee Teresa Hoban emphasized the savings this represented for the village. Trustee Norm Koek inquired about the frequency of rate reassessment, and Kennedy recommended reviewing rates every five years, or sooner if needed based on operating and capital needs.
No changes in accounting policies and no audit concerns reported
BST reported no changes in accounting policies, no significant unusual transactions, and no difficulties in working with village management. Kennedy and DeBarr praised the cooperation received from staff during the audit process.
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