Ebensburg

Pennsylvania

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2023 & 2022 Audit Report

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Ebensburg Municipal Authority Financial Statements (2023 & 2022)

This document contains the Independent Auditor’s Report and Notes to Financial Statements for the Ebensburg Municipal Authority (the Authority), a component unit of Ebensburg Borough, Pennsylvania. The financial statements cover the years ended December 31, 2023, and 2022.

Independent Auditor’s Report

  • Auditor: Wessel & Company, Accountants & Advisors (Johnstown, PA).
  • Opinion: The financial statements present fairly the financial position of the Authority in accordance with accounting principles generally accepted in the United States of America (GAAP).
  • Scope: The audit covered business-type activities and related notes.

Key Financial & Operational Details

  • Operating Agreement: In December 2017, the Authority entered a five-year agreement with the Borough of Ebensburg. The Borough manages day-to-day operations of sewer and water systems and employs Borough personnel for routine procedures.
    • Compensation: The Authority compensates the Borough $201,000 annually for administrative management services, payable quarterly.
  • Loan Amendment: In April 2022, the Authority amended its Operating Agreement to increase annual lease payments prior to principal and interest payments on a 2022 PENNVEST water construction loan. As of the report date, this increase had not yet occurred.
  • Debt Service Payments: The Borough remits principal and interest costs to the Authority for all Municipal Authority loans.
    • 2023 Payments: $1,240,919
    • 2022 Payments: $1,167,645
  • Project Support: The Borough also made payments to support the Waste Water Project and other expenses.
    • 2023 Payments: $26,492
    • 2022 Payments: $161,018

Governance & Legal Matters

  • Board Appointments: Under the Pennsylvania Municipal Authorities’ Act, the Borough appoints all members of the Authority board. However, the Authority retains powers regarding rates, regulations, and major policies.
  • Litigation: The Authority is involved in various disputes and grievances in the normal course of operations. Management believes any outcome would not have a material effect on the Authority’s financial position.
  • Subsequent Events: Events were considered through March 15, 2024. The Authority is not aware of any subsequent events requiring recognition or disclosure in the financial statements.
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