The city of Glasgow received a clean bill of financial health from auditors for the fiscal year ending June 30.
Belinda Coulter of local accounting firm Taylor, Polson & Co. presented copies of the 93-page audit booklet to the Glasgow City Council on Monday. No significant problems were found, according to the audit report.
Glasgow Mayor Rhonda Riherd Trautman said during the meeting that the audit report shows the city is on the right economic path.
“The audit reflects the results of our efforts to cut expenses and operate the city more efficiently. The audit also shows that we have achieved a balanced budget in the general fund for the second year in a row, while more importantly not cutting services to the citizens or benefits to our employees,” Trautman said. “The city of Glasgow is in a good financial position and we will continue to take the necessary steps to assure that the tax dollars are not wasted. We are fortunate that our local economy has improved.”
This audit did not include the financial statements of Glasgow Water Co. or the Glasgow Electric Plant Board.
“Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for [GWC and EPB], is based solely on the reports of the other auditors,” the audit report says.
In her remarks to the council, Coulter pointed out the “Management’s Discussion and Analysis” section because it highlights some of the most important portions of the report, such as:
• As of June 30, assets for the total primary government – not counting GWC, EPB and the Glasgow Municipal Airport – exceeded liabilities by $49,334,095, which is considered the net position.
• The net position decreased by $1,278,516, or 2.5 percent.
• The fund balances in the governmental funds, which are the amounts left in each fund at the end of the budget period and can be seen as a measure of financial resources, decreased $399,067 to a total of $16,691,467. Of that, $2,825,176 is “unassigned and available for spending at the city’s discretion.”
The section also notes that “the increase in general fund balance exceeded budget estimates by $2,253,805, since revenues exceeded budget by $830,728, and expenditures were less than budget by $1,552,654. Transfers to other funds from the general fund exceeded budget by $129,577.”
The general fund is only one of 15 primary government funds.
The city’s capital assets, after accumulated depreciation, total $32,821,957. These include land, land improvements, buildings and improvements, equipment and furnishings and vehicles.
Two misstatements that were found and corrected were pointed out in a separate letter to the council’s finance committee: A transfer of $1,085,332 to the Glasgow-Barren County Industrial Development and Economic Authority that has been earmarked to help Western Kentucky University add to its Glasgow campus, and a cumulative total of $490,000 in loans that were forgiven as part of the Glasgow Economic Development Loan program.
Both transactions occurred after the end of the fiscal year, so the city listed them in this year’s budget. But according to government-accepted accounting standards, they needed to be listed on the FY 2013 financial statements, Coulter said later.
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