Nome's utility is five years behind on audits and borrowing costs more

The Nome Joint Utility System has not completed an audit since 2021, and the delay is probably costing ratepayers money. The utility manager told the board Tuesday that interest rates on the utility's annual fuel loan are likely higher because of the unfinished books, though going after tax-exempt financing again brought them back down.

Board member Karl Emmons said the cost "falls directly on us," and moved to take up the audits and the budget in open session rather than behind closed doors, saying the community was curious and the board should discuss it publicly. The board agreed.

"I mean, it's been 5 years, guys. Let's have it. You know, we don't even have a budget now," Emmons said.

The gap is visible outside the utility. The City of Nome's fiscal 2024 audited financial statements excluded NJUS entirely.

The 2021 audit is finished and the outside accountant is ready to present it. The 2022 audit needs finalizing. The accountant's written update said the 2023 audit still awaits a final trial balance and expense documentation, and that little paperwork has come in for 2024. Management blamed staffing gaps, saying the short-handed utility made sure bills and employees were paid while staff sorted out general ledger entries.

"We started out with an estimate from BDO that our audits would all be done in the first part of July. Now we'll be lucky to get them by the first of the year," Emmons said. He argued the board should hire the work out: "There's a whole bunch of people out there that are in the accounting business. We could hire somebody to put a budget together."

The manager said a budget does not require finished audits and promised one by the end of the week. Last year's fuel loan is paid off, and this year's tax-exempt financing, in discussion with the bank since about May, has not closed.

The board chair said a 2022 audit is not enough in 2026, and that fixing the pattern falls on the board.