Independent auditors issue clean report for Palatka FY2024; city debt rose as capital projects expanded

Auditors presenting the City of Palatka’s fiscal-year 2024 audit told the commission Thursday that the financial statements were in order, there were no control deficiencies to report, and the auditors had identified no instances of fraud, illegal acts, or disagreements with management.

HCT & Company’s representatives summarized year-to-year changes: total citywide revenues rose modestly and grant revenue increased; capital assets rose notably as infrastructure work continued; and long-term debt increased to about $22.9 million from $14.6 million in the prior year, reflecting capital projects. The auditors said they completed testing of revenues, expenditures and capital-asset additions and issued the required communications, noting no material adjusting entries or outstanding issues.

Commissioners and city staff thanked the finance team for completing the audit on time and for maintaining internal controls amid what staff described as a turbulent year. Staff also told commissioners they had received a proposal to perform a separate operational audit.

The audit materials will be posted as the final report and the finance director said the city has no outstanding findings, a decrease in prior-year accounting anomalies had been corrected and the city’s reserve ratio remained above recommended thresholds.