Luzerne County 2023 audit released, shows $1.63 million surplus in general fund operating budget

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Luzerne County ended 2023 with a $1.63 million general fund operating budget surplus, according to a review of the audit released Friday.

That means the county spent $1.63 million less than it brought in last year.

County Budget/Finance Division Head Mary Roselle said the surplus partly stemmed from positions not filled due to continued challenges with recruitment and retention in some departments.

However, that is not the only contributor, Roselle said.

The budget/finance division has stepped up efforts to manage cash accounts and make sure the county is earning the maximum interest possible, she said.

“Departments are also working together to ensure they are using available funding as efficiently as possible as well as controlling expenses,” Roselle said.

Roselle said her initial assessment of the audit was positive.

A full presentation is scheduled at council’s July 23 meeting. Prepared by Baker Tilly, the audit was completed two days before the June 30 county home rule charter deadline.

Oversight of county budget/finance changed during the 2023 focus year of this audit. Roselle started serving as interim budget/finance division head when Brian Swetz left the position in August. Roselle was appointed the permanent division head in November.

Pension fund

The county ended 2023 with a net pension liability of $108.7 million, which was an improvement from the $115.8 million reported in the previous annual audit.

At the end of 2023, the employee pension fund held approximately $299.4 million in assets for future benefit payments and was 73.8% funded. The audit notes this funded status increased 4.9% since the end of 2022.

Some other pension notes from the audit:

• Employees contributed $4.4 million toward their pensions in 2023, a slight increase from $4.3 million the prior year.

• The fund issued $23.95 million in payments to pension members in 2023, which was an increase from the $22.77 million paid the previous year.

Debt

At the end of 2023, the county’s net general obligation debt was approximately $151.19 million, compared to $172 million the preceding year, the audit said.

The county will free up approximately $26 million annually after the debt is repaid in 2030.

As in last year’s audit, Baker Tilly addressed the county’s economic condition and outlook.

“Management knows that the path to a stable future includes changes to major expenditure outlays, primarily debt service, which constitutes more than 20% of the general fund expenditure budget,” it said.

It noted the county’s Standard and Poor’s credit rating was elevated from A- to an A rating with a stable outlook in February 2023.

County Manager Romilda Crocamo, who has served as the county’s top overseer since May 2023, thanked the budget/finance division for its work keeping county finances on track, saying the report “provides valuable insights into the financial health of our organization.”

“On behalf of the Luzerne County administration, I would like to extend my heartfelt congratulations to Mary Roselle and her team on the successful completion of the recent audit report,” Crocamo said. “The accomplishments of Ms. Roselle and her staff are a reflection of her team’s professionalism, teamwork and unwavering dedication to serving the residents of Luzerne County.”

The audit is evidence that years of hard work by council and the administration have paid off and the county is “trending in the right direction,” she said. It also “serves as a testament to the staff’s exceptional skills and expertise in navigating the challenges that come with ensuring financial transparency and accountability.”

“We understand that the road to success is not always smooth, and challenges are an integral part of any journey. However, with an unwavering determination and commitment to excellence, we will overcome these obstacles and achieve positive outcomes,” Crocamo said.

“I am proud to be a part of our organization and look forward to witnessing the continued success and growth of Luzerne County by working side by side with County Council,” she added.

Reach Jennifer Learn-Andes at 570-991-6388 or on Twitter @TLJenLearnAndes.