By James Massey
Von Ormy City Administrator
On November 7, 2012 in accordance with the requirements set forth by the Governmental Accounting Standards Board, Wayne Beyer & Co. presented Von Ormy’s Fiscal Year 2011 audit to City Council. As the City Administrator, I am responsible for carrying out a number of duties for the City of Von Ormy, none more important than ensuring its financial health. In the interim, citizens and the City Council are kept abreast of the City’s financial condition on a quarterly basis; however it is the City Audit, an independent accountant’s review of the City’s financial holdings and transactions that confirm the strength of the City’s financial standing at the end of the previous fiscal year. By our independent reviews account, Fiscal Year 2011 was a banner year for the City of Von Ormy and resulted in the highest possible review scoring.
Reviewing aggregate numbers, the City of Von Ormy increased its total net assets by $131,345 over the previous audit which, serving as the City’s first, accounted for two fiscal years. Such an increase is staggering. With total assets amounting to over $309,000, only 15% need be reserved as an assigned or dedicated reserve with an additional 10% serving as the City’s unassigned reserves. Such stipulations allow roughly $230,000 of the City’s liquid assets to be used for maintenance and operation and project appropriations. The greatest factor contributing to the increase in City assets was the efficiency with which the government has operated. Though budgeted for total general fund expenditures in the amount of $276,850 (adjusted), the City spent only $200,539 during FY11; a savings of $76,211 which, combined with higher than anticipated revenue (chiefly $47,391 from sales tax receipts) forged a surplus of $100,171.
Having noted that the City is in an enviably position financially, I would be remiss not to mention that we were not perfect in all areas. Beyer & Co. pointed out a few deficiencies during the audit, several of which have already been addressed. The City has had a depository contract with Texas Community bank since 2010 despite the findings of Beyer & Co. which stated otherwise. While the City did not have a certified investment officer for FY11, the current City Administrator has received the requisite training and is credentialed by GTOT as the certified investment officer for fiscal years 2012 and 2013. Regarding the City’s use of accounting software, the auditor has pointed out several ways in which our current can and will be improved by implementing standard practices in accordance with GAAP and GASB tenants. Likewise, the issue of missing invoices may be addressed with improved accounting and reconciliation practices. The remaining deficiencies are difficult to overcome due to the City’s limited number of Full Time Equivalent personnel. Though a personnel policy is being drafted at the time of this writing, segregation of duties is nearly impossible to achieve as the entire administration is made up of only 2 staff members.
Overall, the City of Von Ormy’s FY11 audit bears witness to the fact that the City has been an efficient and resourceful steward of public funds focusing on the provision of core municipal services. This audit should be viewed as a harbinger of great things to come for this community as many of the same principles and measures have been continued throughout FY12. Financially secure, we can rest assure that the City is moving in the right direction.
James Massey has a Master’s Degree in Public Administration from St. Mary’s University and has been City Administrator of Von Ormy since 2011.
No comments:
Post a Comment