City audit reports $2.5M cash loss in 2013
by Neil McGahee
Jan 17, 2014 | 2210 views | 0 0 comments | 10 10 recommendations | email to a friend | print
Despite a $2.5 million cash loss, Certified Public Accountant Lloyd Williamson was upbeat as he presented the 2013 audit to the Cartersville City Council Thursday night.

“First off, we delivered an unqualified opinion, which means that nothing seriously wrong was found with any of the city’s financial statements,” Williamson said.

However the city lost $2.5 million in cash from its general fund.

“The change in the net position of the general fund was $2,543,000 over the past year,” he said. “Now that sounds bad but it’s not necessarily so. The general fund is not going to retire. You still have $1.4 million in the fund and you collected more than $33 million in revenue in 2013.”

Williamson noted that general fund expenditures decreased by nearly $2 million although they were still much higher than revenues.

Other revenues, notably the water and sewer and the electric funds, declined by almost $2.5 million while the gas fund recorded a $2 million increase.

Williamson said capitol projects received $4,361,241 mainly from SPLOST funds but spent more than $12 million, leaving $3.6 million in cash at year’s end. The city retirement fund increased by $3.8 million to $32,038,899 at year’s end.

Williamson said the sometimes confusing numbers shouldn’t be any cause for concern; despite the numbers, every department’s expenditures remained under budget.

The November financial report presented by Finance Director Tom Rhinehart showed general fund revenues increased by more than $500,000 over the 2012 amount, while expenses increased by more than $350,000 due to increased personnel and operating expenses.

Broken down by fund:

• Water and sewer fund revenues increased by more than $12,000 and expenses decreased by $46,221.

• Gas fund revenues increased by more than $600,000, but that was offset by $1.4 million in expenses.

• Electric fund revenues increased by more than $70,000 but that was offset by $277,719 in expenses.

• Stormwater fund revenues increased by almost $60,000 along with a $265,000 decrease in expenses.

• The solid waste fund revenues increased by more than $19,500 while expenses decreased by nearly $60,000.

• Fiber optics fund revenues increased by more than $50,000 while expenses decreased by $34,257.

In other business, the council voted to send two fire ordinance revisions to a second reading in February, signed a quit-claim deed for an abandoned alley, and awarded bids for restocking inventory at the distribution and collection center and purchase of a main boom for a backhoe.

Cartersville City Council will meet again Thursday, Feb. 6, at 7 p.m. at city hall.