When Mayor Toby Barker took office in 2017, he and his administration identified several goals for Hattiesburg’s financial recovery – including restoring the city’s bond rating, which had been suspended after two late audits from the previous administration.
In the five years since, the city has completed six audits, with the most recent being the one for Fiscal Year 2021, which was accepted at a June 30 special-called meeting of Hattiesburg City Council. The audit was compiled by Topp McWhorter Harvey, a Hattiesburg financial firm hired by the city.
“We’re glad that we continue to deliver on-time audits for the City of Hattiesburg,” Mayor Toby Barker said. “That was an issue when we first took office, and in five years we’ve completed seven audits.
“We’re pleased with the new findings.”
The results of the audit were presented to council members by Ann Jones – who serves as chief administrative officer for the City of Hattiesburg – along with Jabe Mills of TMH and Malcolm Berch, interim chief financial officer for the city.
Total assets for the city include $262 million for governmental activities and $165 million for business-type activities. The Hattiesburg Convention Commission, which is listed as a component unit, is included on the audit for $26 million.
Deferred outflows of resources for governmental activities are $7.1 million and $996,000 for business-type activities, while total liabilities include $154 million for governmental activities and $91 million for business-type activities.
The audit did show some internal weaknesses for the city, in particular issues with the city’s software system. However, officials have been working on that issue since last year – when it also showed up on that audit – and Mills said that problem should be off the books in time for the next audit.
“That should resolve most of these issues,” he said. “There were no new findings issued in this year’s audit report.”
The following is a list of audits that have been completed since 2017, with three of those having been brought into compliance within a span of 17 months:
- The 2015 audit was received in December 2017;
- The 2016 audit was received in July 2018;
- The 2017 audit was received in November 2018;
- The 2018 audit was received in June 2019;
- The 2019 audit was received in June 2020;
- The 2020 audit was received in May 2021; and
- The 2021 audit was received in June 2022.
Audits for fiscal years 2018, 2019, 2020 and 2021 were completed on time.
In December 2018, officials learned Hattiesburg’s bond rating – which had been suspending in 2017 because of the late completion of the city’s Fiscal Year 2015 audit – had been restored to an initial Aa3 by credit rating firm Moody’s Investor’s Services. In July 2020, the city learned the bond rating – which allows the city to borrow funds at a competitive rate, as well as apply for grants for certain projects in the city – had been renewed.
“The lack of timely audits led to us being (ineligible) for grant opportunities, and it led to our Moody’s rating being declined,” Barker said. “Catching up on audits allowed us to get our Moody’s rating back and to get off suspension for federal and state grants.
“There’s always an urgency to deliver an on-time audit before the end of June every year. We got a good one this year.”
