(Dec. 4, 2014) Salisbury auditing firm PKS & Company gave Berlin high marks during a mayor and last Monday’s council meeting.
Accounting and Auditing Partner Michael Kleger and Manager Leslie Michalik said Berlin’s financial status was unmodified from the previous fiscal year, saying it “had no material weaknesses.”
Kleger gave the town the “highest level of assurance we can provide as auditors.”
The general fund increased from $5,189,588 in 2013 to $5,193,211 in 2014, while expenditures decreased sharply from $5,240,306 to $4,401,742 during the same span.
The majority of the general fund balance, 56 percent, came from property taxes. Intergovernmental revenues made up another 19 percent, service charges accounted for 12 percent and licenses and permits drew 3 percent.
“This represents … a very healthy fund balance,” Michalik said. “The town is in good financial position.”
Public safety was the biggest general fund expenditure in 2014, coming in at 36 percent. General government accounted for 26 percent, public works took up another 20 percent, and planning and capital outlay both drew 7 percent.
By type, 45 percent of general fund expenditures went to salaries, 18 percent went towards employee benefits and 27 percent paid for other operating costs. Capital outlay made up 7 percent and debt services accounted for another 3 percent.
Electric fund revenues were down slightly, $5,906,360 in 2013 versus $5,829,539 in 2014, although operating expenses decreased nearly $200,000 during the same period.
Water fund revenues increased slightly from $694,673 in 2013 to $708,434 in 2014, while operating expenses fell from $718,735 a year ago to $688,394 in 2014.
Stormwater had operating funds for the first year in 2014, taking in $182,419 against $295,504 in expenses, with a $300,000 transfer from the general fund evening out the balance.
The only detraction from an otherwise robust budget was the sewer fund, which saw a net decrease of $1,202,614 in 2014 versus last year. Operating revenues and expenses were comparable ($1,715,631 in revenues and $2,526,068 in expenses in 2014 against $1,531,421 in revenues and $2,524,188 in expenses in 2013), but a capital grant of nearly $1.5 million helped offset costs in fiscal year. 2013.
Berlin’s enterprise fund net position fell just over a half million dollars, but remained strong at $20, 044,312.
District 1 Councilmember Troy Purnell asked where the town missed the mark on the sewer fund.
“Obviously you’ve had some major projects going on in the sewer fund,” Michalik said. “The spray site is just finishing up, so there’s probably additional operating expenses in getting those up and running.”
Water Resources Director Jane Kreiter confirmed the town did not have any pending major improvement projects on the horizon, meaning the next fiscal year should see decreased operating expenses.
“Obviously there’s some infrastructure that needs some more [work] but it’s not immediately needed,” she said. “We’re not talking $17 million dollars.”
Michalik said the audit finished a day early thanks to Berlin’s “exceptionally organized” roster of employees.
“You’ve got a good staff,” she said.
“If you think they’re good, now wait until they get some up-to-date software,” District 4 Councilmember Dean Burrell said.
Accounting and Auditing Partner Michael Kleger and Manager Leslie Michalik said Berlin’s financial status was unmodified from the previous fiscal year, saying it “had no material weaknesses.”
Kleger gave the town the “highest level of assurance we can provide as auditors.”
The general fund increased from $5,189,588 in 2013 to $5,193,211 in 2014, while expenditures decreased sharply from $5,240,306 to $4,401,742 during the same span.
The majority of the general fund balance, 56 percent, came from property taxes. Intergovernmental revenues made up another 19 percent, service charges accounted for 12 percent and licenses and permits drew 3 percent.
“This represents … a very healthy fund balance,” Michalik said. “The town is in good financial position.”
Public safety was the biggest general fund expenditure in 2014, coming in at 36 percent. General government accounted for 26 percent, public works took up another 20 percent, and planning and capital outlay both drew 7 percent.
By type, 45 percent of general fund expenditures went to salaries, 18 percent went towards employee benefits and 27 percent paid for other operating costs. Capital outlay made up 7 percent and debt services accounted for another 3 percent.
Electric fund revenues were down slightly, $5,906,360 in 2013 versus $5,829,539 in 2014, although operating expenses decreased nearly $200,000 during the same period.
Water fund revenues increased slightly from $694,673 in 2013 to $708,434 in 2014, while operating expenses fell from $718,735 a year ago to $688,394 in 2014.
Stormwater had operating funds for the first year in 2014, taking in $182,419 against $295,504 in expenses, with a $300,000 transfer from the general fund evening out the balance.
The only detraction from an otherwise robust budget was the sewer fund, which saw a net decrease of $1,202,614 in 2014 versus last year. Operating revenues and expenses were comparable ($1,715,631 in revenues and $2,526,068 in expenses in 2014 against $1,531,421 in revenues and $2,524,188 in expenses in 2013), but a capital grant of nearly $1.5 million helped offset costs in fiscal year. 2013.
Berlin’s enterprise fund net position fell just over a half million dollars, but remained strong at $20, 044,312.
District 1 Councilmember Troy Purnell asked where the town missed the mark on the sewer fund.
“Obviously you’ve had some major projects going on in the sewer fund,” Michalik said. “The spray site is just finishing up, so there’s probably additional operating expenses in getting those up and running.”
Water Resources Director Jane Kreiter confirmed the town did not have any pending major improvement projects on the horizon, meaning the next fiscal year should see decreased operating expenses.
“Obviously there’s some infrastructure that needs some more [work] but it’s not immediately needed,” she said. “We’re not talking $17 million dollars.”
Michalik said the audit finished a day early thanks to Berlin’s “exceptionally organized” roster of employees.
“You’ve got a good staff,” she said.
“If you think they’re good, now wait until they get some up-to-date software,” District 4 Councilmember Dean Burrell said.