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Lake City Report - April 1, 2011
2010 Independent City Audit - Done

From City Manager Wendell Johnson

2010 Independent Auditor’s Report

Good news this week on the Annual Audit. Purvis Gray & Company provided the Staff our brief this week signifying the completion of the FY 2010 audit.

The audit covered in all material respects, the financial position of the City’s governmental activities, the business-type activities, the respective changes in financial position and cash flows for the year ending September 30, 2010. Some favorable details of the audit include:

  • The City resolved prior year issues with Fixed Assets and the inventory was updated during 2010.
  • The City resolved a prior year issue with the elimination of the “weather normalization adjustment” (WNA) from the Gas Rate Ordinance.  The management issue was that the City previously did not apply the WNA adjustment to the natural gas billing rates as required by ordinance.  Although this was not resolved during the FY 10 budget year, it was corrected in February 2011 with implementation of the new gas rate ordinance.
  • The City’s new water/sewer rates which went into effect during June 2010 have produced the revenue flows as predicted by the Water/Sewer Rate Study 2010.   This means the debt services needs for funding the new $18 million Kicklighter WWTP will be adequately covered.
  • The City’s General Fund Revenues increased by $163,842 from FY 2009.
  • Based on the audit, only one issue was noted as a management letter comment that the City must adjust in the form of annual contribution to the General Employees’ Retirement Plan.  The annual contribution from the City into this fund must be increased to eliminate underfunding.   The adjustment was made during the current budget year and will continue for FY 12.

Thanks to all Department Directors and especially to the Finance Staff for a job well done. The Audit will be presented to the City Council no later than May 9, 2011.

The City Staff Report is available in pdf format here.

This work by the Columbia County Observer is licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.

 
 

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Read the City Manager's 2010 Budget and Administrative Report • here.

 

City Staff Report
 • Week ending April 1, 2011