The city of Toccoa receives good news on its Fiscal Year 2013 audit.
Auditing firm Mauldin and Jenkins of Atlanta presented the city’s audit to commissioners during Monday’s meeting.
Mauldin and Jenkins’ Joel Black provided commissioners with the audit.
He said that the city’s overall audit report is a positive one.
“Our opinion was clean,” said Black. “That is what you hope to receive and you did.”
The audit report also looks at the city’s fund balance situation.
Black said he feels an important measure for a city’s finances is the amount of fund balance it has compared to its annual general fund expenditures.
By that measure, he said the city’s financial reserves is in good shape.
“Analysts have told me that two to three months worth of fund balance compared to expenditures is a good ratio, which is 16 to 25 percent,” said Black. “If you just took unassigned fund balance, you are at 31 percent. You are in good shape.”
Based on that, the city’s unassigned fund balance, or fund balance not designated for any purpose, could cover nearly four months of expenses.
Mauldin and Jenkins did list three things in its report Black calls “main findings.”
Black said one of those deals with the financial close and reporting process at the end of the fiscal year, where Mauldin and Jenkins required some adjustments by the city.
The second deals with adjustments required in some areas regarding the city’s capital asset accounting, which Black says is an issue for a lot of cities.
Black said the final finding involves segregation of duties to help as a matter of internal controls in the city’s accounting area. He says that is a finding that most local governments have due to limited personnel to handle all of the different duties.
Toccoa Mayor David Austin said that the report is good financial news for the city.
“We have used Mauldin and Jenkins for the last four years and they have done a great job,” said Austin. “We did have a good, clean audit. We have money in reserves above what is normal for a city our size, which is a good sign. It was a good audit. We are well pleased with it.
City officials also thanked staff for its efforts and also thanked Mauldin and Jenkins for its work.