The city of Toccoa receives its Fiscal Year 2012 audit report.
Joel Black from the city’s auditing firm, Mauldin and Jenkins of Atlanta, presented the report at Monday’s regular city commission meeting.
Black said that the city received a clean audit opinion for the Fiscal Year ending June 30, 2012.
“Our opinion was unqualified, or clean, which says that those financial statements are materially correct,” said Black. “It is what you would hope to receive and it is good.”
Black said that the city worked well with his firm during the audit process and he says the firm appreciates the cooperation of the city’s staff.
According to Black, the city also worked to correct a number of findings in last year’s audit and as a result, those were not reported in this year’s audit report.
Mauldin and Jenkins did report four findings in this year’s audit.
Black said that he feels the most significant finding was to improve accounting for the city’s capital assets. Other findings involved Fiscal Year-end financial close and reporting controls, which Black says involved only two small items; budgeting of the Flood Grant Special Revenue Fund; and segregation of duties, which Black says is a finding that most governments have due simply to not having enough staff to fully segregate duties.
Black also talked about the city’s fund balance situation.
He said that the city of Toccoa is in good shape regarding its total unreserved fund balance reserve when compared to total general fund expenditures.
“If you had to pick one ratio, this is what most industry analysts would tell you to pick and that is taking your fund balance, in particular, unassigned fund balance, and comparing it to your annual expenditures to see what kind of reserve, in essence, you would have,” said Black. “Most people would say that a good, strong fund balance would be two to three months worth of expenditures, which would be 16 to 25 percent. You can see that the city’s (ratio) has significantly grown over the last five years to now being 32 percent,” said Black.
Toccoa Finance Director Cathy Loudermilk noted during the financial report later in the meeting that the increase in that number comes mainly from the city’s Commission Reserve Account, which had about $1.86 million in it as of November 30.
City commissioners thanked Mauldin and Jenkins for its work on the audit and city staff for their efforts as well.