May 31, 2025 — Outside Independent Audit
Comprehensive analysis of Penn Yan's financial position, debt obligations, and fiscal stability based on audited financial statements
Village of Penn Yan | Fiscal Year Ending May 31, 2025
This page summarizes the Village of Penn Yan's independently audited financial statements for the fiscal year ending May 31, 2025. The audit was performed by an outside CPA firm in accordance with auditing standards, to determine whether the Village's basic financial statements are presented fairly under U.S. governmental accounting rules (GAAP/GASB).
The audited Statement of Net Position reports the Village's combined financial position across both Governmental Activities (tax-supported operations) and Business-Type Activities (utility operations: electric, water, sewer).
Why this matters: cash and restricted cash are the most "real-world" liquidity indicators residents can understand, separate from infrastructure accounting values.
The Village reports Total Net Position ≈ $42.3 million, but a major portion of that is tied up in long-lived capital assets (infrastructure and equipment) rather than liquid reserves. The statements define key net position components like "net investment in capital assets," "restricted," and "unrestricted."
Plain-English takeaway: The Village can report a high net position while still facing cash, debt service, or rate pressure because infrastructure value is not spendable like cash.
The audited notes provide a direct breakdown of fund balances (governmental funds). At May 31, 2025:
Why this matters: General Fund unassigned balance is often the best quick indicator of near-term resiliency. A capital projects deficit can signal active capital spending and future borrowing.
The audited long-term liability schedule shows major components of structural obligations:
Plain-English takeaway: Even with a strong asset base, pension/LOSAP obligations and debt service are ongoing structural costs that can tighten future budgets.
The audited notes disclose that utility funds financially interact with the General Fund via PILOTs and rent:
Why this matters: This shows the Village's governmental and utility finances are connected; changes in utility performance or capital needs can indirectly affect broader fiscal stability.
BST's report explicitly states that required supplementary information was omitted from the published financial statements package—specifically:
The auditors note this missing information is normally considered essential context for financial reporting, though they also state their opinions on the basic financial statements are not affected by the omission.
Plain-English takeaway: The core audited statements can still be fairly presented, but the omission reduces transparency for trend analysis and year-to-year context.
The independent audit package supports a "stable but obligation-bearing" picture:
The most important civic question is not "Did the auditor sign off?" (they did on the basic statements), but whether future capital needs and long-term obligations can be absorbed without tax/rate pressure, especially if new infrastructure burdens are introduced.
Official records and audit documents this analysis is based on
Full independent audit report for FYE May 31, 2025
View DocumentVillage comprehensive annual financial report (CAFR)
View DocumentAnnual budget resolutions and amendments
View DocumentFinancial-related board resolutions and approvals
View DocumentDocuments will be linked once obtained through FOIL requests or provided by the Village
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