|By Al Owens
Meeting in regular
session last week the city council heard a report from the accounting firm of Smith,
Goolsby, Artis & Reams P.S.C, Ashland, on the annual audit for the fiscal year ending
June 30, 2003.
Staff Accountant John Spears told the council that the audit was clean and the company
found no instances of non-compliance or any problems that need to be addressed.
The audit shows that as of June 30, 2003 the city's total assets were valued at
$3,309,395. Total liabilities were $562,311. The city's equity was $2,747,084.
Spears said that total revenues for the city except for the sanitation department came
to $403,022. The sanitation department comes under the heading of a proprietary fund and
is on a separate page. Total expenditures for the city government were $606,716. The total
from other funds was $191,993, and the ending fund balance was $742,456.
The accountant turned to the proprietary funds that include the sanitation department
and the Electric Plant Board. Operating funds for these entities totaled $111,326. The
sanitation department had operating expenses of $119,993. The sanitation fund had a
beginning balance of $8,697 and an ending year balance of $2374.
Spears explained that the deposits and investments page shows how much cash the city
has in the local banks. Certain amounts are covered by the FDIC, and banks will pledge
securities for those deposits. The record shows that the city has uncollaterallized
deposits of $394,362 in First Community Bank Lewis County. The institution does not have
enough securities pledged to cover that deposit.
He said that in the years past they have but some changes in personnel have occurred
there and the person that took care of that is no longer there. Spears called it an
Mayor William T. "Bill Tom" Cooper and City Attorney E.V. Holder Jr. said
they would see that the situation was corrected the next morning.
Spears informed the council that due to new legislation that came as a backlash from
the accounting practices of the big corporations such as Enron and World Com auditors can
no longer do the compilation work with the financial statements.
That means that the city must hire someone
to come in and handle the compilation of those statements. He said that all the big cities
have already had to do this and now all the small towns must comply with the new
Holder expressed concern that the audit was dated September 30, 2003, and was not
presented to the city council until February 2, 2004.
Spears explained that the September date was the date the fieldwork was completed.
After that the information was taken to the firm's office and the report was prepared.
Holder was concerned about any questions that might later arise about matters during
Spears apologized for turning in the audit late but said one of the senior members of
their staff had become ill and his workload fell on the other workers.
Holder told the council that some firms publish the date the fieldwork was completed,
the date the report was completed and the date the report was presented to the client.
The council adopted a resolution authorizing Cooper to submit a grant application to
the Kentucky Transportation Department Cabinet for $300,000 for streetscape activities in
the Renaissance District in the Vanceburg City Limits. The grant comes under the auspices
of the Transportation Equity Act for the 21st Century.
The subject of annexation was on the agenda but was tabled until the next session
because all the paper work was not completed. Cooper said it dealt with some property an
owner wanted to have annexed to the city.
The council also authorized the mayor to purchase a truck with Area Development
District funds of $7,500. The mayor emphasized that the purchase would be made with ADD
funds and not with city funds.