Lake City Report -
April 1, 2011
2010 Independent City
Audit - Done
Columbia
County, FL (Posted April 02, 2011 06:10 am )
by City Manager Wendell Johnson and
staff
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.
