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 six years since, the city has now completed eight audits, with the most recent being the one for Fiscal Year 2022, which was accepted at a June 30 special-called meeting of Hattiesburg City Council. The audit was compiled by Topp WcWhorter Harvey, a Hattiesburg financial firm hired by the city, and is the third completed within the first 17 months of Barker’s first administrative term.
“First, I’m glad that we completed an audit on time yet again,” Barker said. “There were no new findings, and one of the old findings rolled off.
“As we continue our software transition with our accounting systems, we’ll see more of those audits from years ago roll off as well. It takes a lot of manpower to produce an audit for an organization that’s as large as the City of Hattiesburg, and I’m very grateful to our comptroller Lisa Hansen, city clerk Kermas Eaton, (chief administrative officer) Ann Jones and (interim chief financial officer) Malcolm Berch.”
In addition to no new findings on the audit, the city also received an unmodified opinion, which is the best opinion an agency can receive on an audit. The audit also shows the city’s continued growth in property and overall tax receipts; internet sales tax receipts were up 90.42 percent over 2021, totaling approximately $3.78 million.
Overall, the city had a positive change in net position of approximately $19.3 million.
“That’s just the position Hattiesburg occupies in the economy,” Barker said. “When the Legislature passed that Infrastructure Modernization Act, that created a tax diversion off the Internet sales tax.
“It was phased over four years, and this current year produced the most revenue for the city to date. That money is put into infrastructure, and I think the tax revenues are signs of a thriving economy.”
The eight audits and receipt dates are as follows:
- 2015 audit received in December 2017
- 2016 audit received in July 2018
- 2017 audit received in November 2018
- 2018 audit received in June 2019
- 2019 audit received in June 2020
- 2020 audit received in May 2021
- 2021 audit received in June 2022
- 2022 audit received in June 2023.
Audits for fiscal years 2018, 2019, 2020, 2021 and 2022 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.”
