City gets another year of clean audits
The 2017 Cedartown audit report was presented at the Cedartown City Commission, and they once again got a clean bill of health from Mauldin and Jenkins.
While extensive, Adam Fraley and Justin Davis from the audit team laid out important details to help the commission and audience in understanding the report.
According to the audit, the City of Cedartown has government-wide assets and obligations of $52 million on the books. That include $19 million in debts overall, and $33 million in investments, properties they own, vehicles and cash on hand. The 86-page report gave the city an unmodified opinion of what they’d submitted previously as the budget and actual figures for FY 2017, and what the auditors found through their own work looking over the books as well.
“$28 million was invested in capital assets,” said Davis. “$2 million was restricted while $3 million is left unrestricted.”
The report shows that Cedartown officials invested the money back into the city while putting aside money if needed. In the end, Davis said the $33 million had been invested wisely, just as in past years.
During FY 2017 Cedartown gained more revenue than budgeted the prior year through property and sales taxes. Auditors found that Cedartown’s general revenue increased by $361,000, matching up with what the city had reported previously.
The city receives money from taxes, revenue derived from law enforcement actions like charges where fines are imposed and traffic tickets, and various fees like for building permits or business licenses.
While auditing, Davis said there was only one problem they could find in the way the city handles its finances, and one that has been on audits for many years in the past.
“We had one material weakness in internal controls and it was due to segregation of duties,” said Davis.
Planning ahead, Davis said the team wants to change the process of journal entries.
While Davis said the problem was the segregation of duties, long-term member of the City Commission Bill Fann said the primary problem belonged to the small staff.
The problem has occurred in the past and the commissioners plan to begin solving it in the upcoming year, like with promotions of staff members that could allow for the segregation of some duties. (See this week’s edition on Page A5 for more.)
Commissioners Matt Foster and Jordan Hubbard listen in as auditors from Mauldin and Jenkins provide their report on the City of Cedartown’s finances in 2017.