During its regular meeting on Tuesday, May 21, the Daleville City Council received the results of its annual audit performed by Carr Riggs & Ingram.
CPA Keith Hundley presented the council with an “unmodified opinion” for its FY18 audit.
The city’s statement of net position, which includes the city's debts and assets, shows the long-term financial health of Daleville and is " a complete financial picture of the city."
The city's total assets equaled $22.4 million, while its total liabilities equaled $9.5 million. The city's total deferred outflow of resources totaled $423,000, and its total deferred inflow of resources totaled $933,000.
The city's net position equaled $12.4 million.
The statement of activities shows total expenses, which includes the city government, water board and rescue squad activities, equaled $5.9 million. Charges for services equaled $2.6 million, operating grants and contributions equaled $11,000, and capital grants and contributions equaled $156,000.
The total general revenues and transfers, according to the statement of activity, equaled $3.6 million. The change in net position was an increase of $393,000.
The balance sheet of governmental funds shows the "near-term" financial positions and operations of the city, according to Hundley. This portion of the audit does not include capital assets.
The total assets for governmental funds equaled $4.9 million, and the total liabilities equaled $230,000. The total deferred inflow of resources for property taxes totaled $317,000. The total fund balances for governmental funds equaled $4.4 million.
For the 2018 fiscal year, the governmental fund statement showed $4.9 million in total revenues and $6 million in total expenditures. The city had a negative net change in the government funds balance at $613,000.
“You still have $4.35 million in your fund balance for your governmental funds, so again, even though we had a loss, we still had a good, strong balance sheet,” Hundley said.
For the city’s statement of net position for proprietary funds for the water and sewer and the rescue squad funds, total assets equaled $9.2 million, while its total liabilities equaled $2.2 million. The city's total deferred outflow of resources totaled $5,000, and its total deferred inflow of resources totaled $109,000.
The net position equaled $6.8 million.
The city’s statement of change in net position for proprietary funds shows total operating revenues equaled $1.4 million and total operating expenses equaled $1.39 million, making operating income equal $13,000.
Total no-operating revenues (expenses) equaled $80,000, and transfers out equaled $82,000.
The change in net position was a decrease of $149,000.
Hundley told the council that two discoveries were made, which have been addressed by the city. The first discovery concerned the city’s rescue squad.
“We test this every year,” Hundley said. “I think this year we had some personnel issues, change or turnover creating issues.”
In the audit, the condition states that auditors “noted that 5 of 38 runs tested were not billed in a timely manner resulting in revenue not being collected by the city.”
“We made the city aware of this, and the individual in charge of that, I believe, filed those and got those billed,” he said. “I believe, from talking to the mayor earlier, there’s been some things put in place going forward.”
The second discovery noted several “exceptions” of the recreation department revenue in the audit, which mentioned “of the 25 daily cashout reports reviewed, two did not have dual signatures as required,” “six occurrences of discounted athletic registrations,” “one occurrence of a gym rental that was discounted $150,” “three occurrences of field rentals that were discounted a total of $430,” “multiple requests were made for an approved fee schedule but none was provided” and “there are no written policies and procedures regarding the financial operations of the recreation department.”
“We’ve made some recommendations and also provided some information to the clerk to help with… putting some controls in place,” Hundley said, calling both discoveries “easily fixable.”