The Bethlehem Finance Committee received the city’s 2024 audit presentation and was told the independent auditors issued an unmodified opinion on the financial statements.
Jennifer Krueva Kibbe, the audit partner who led the engagement, told the committee the auditors gave an unmodified opinion, which is the best opinion that the city can receive and that the financial statements are materially accurate under generally accepted accounting principles. She said the city expended more than $750,000 in federal awards in 2024, requiring a single-audit of major federal programs.
The auditors reviewed three major federal programs in 2024: ARPA (Coronavirus State and Local Fiscal Recovery Funds); a Highland Conservation grant tied to a property purchase for a rail-trail connection; and an economic development grant to the Bethlehem Food Co-op. Krueva Kibbe reported no material issues or findings for those programs under uniform guidance.
On financial highlights, the auditors said the city’s governmental activities showed a change in net position of $20,000,000 for 2024 and that total revenues rose by about $5,000,000, driven in part by grants and increased real-estate tax and interest income. Business-type activities (water, sewer, golf, stormwater) produced net income of about $15,200,000, the presentation said. The General Fund showed a $1,000,000 decrease for the year and a reported year-end balance of $58,900,000, with $44,400,000 presented as unassigned and a $253,000 restricted balance for community development; the presenter said 14.2 was assigned for future capital expenses but did not specify the units in the presentation.
Krueva Kibbe told the committee there were no government-auditing-standard findings and no significant proposed adjustments that were material to the financial statements. The auditors did, however, include two management-letter recommendations as best practices: (1) review procedures supporting sewer-administration charges to ensure the amounts are substantiated and allowable, and (2) strengthen documentation and signatures evidencing review of procurement card (P-card) statements.
Joe Vlasic, the city’s director of financial services, thanked the audit team and described the audit as an ongoing, year-long effort by many departments. Committee members pressed administration on how the recommendations will be implemented; officials described a phased reduction of the sewer transfer over multiple years and said a P-card review committee has been formed, with a goal of a new process in place by January 1, 2026 (presentation date given as January 0, 2026 in the transcript). The item was presented for information and no formal action was taken on the audit itself.