By Michael Howlett email@example.com
February 2, 2014
The Town of Hillsville got a positive audit report from Juan J. Garcia of the certified public accounting firm of Hicok, Fern, Brown and Garcia during its Jan. 13 meeting. Garcia told town council that Hillsville had “very minor issues” due to the fine work of the town staff.
The firm’s report read “As part of obtaining reasonable assurance about whether the Town of Hillsville’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts.”
Garcia had just “two suggestions” for council. One suggestion made by Garcia, which he noted is already being implemented, was to formulate a “preapproved venders listing,” so monthly checks could be written without going through council. Garcia’s second suggestion was a “segregation of duties.” However, he added that wasn’t necessary because “the town does a good of internal controls.”
The report went on to say that the town’s financial statements “Present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Hillsville as of June 30, 2013, and the respective changes in financial position and, where applicable, cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.”
As of the fiscal year ending June 30, 2013, the town had a net position of $5,737,332, which was a decrease of $243,009 from the previous year, while governmental funds reported balances of $1,148,043, which was a decrease of $33,721. The unassigned fund balance for the General Fund was $870,296.
The town’s main source of income was general revenues, with taxes accounting for $1,993,584 of that category. Sewer income of $627,851 and water of $434,064 were the top moneymakers under business-type activities, capital grants and contributions came in at $251,728 under community development.
The key expenses for the town were water ($559,511) and sewer ($994,713), which totaled $1,554,224, and public safety at $1,051,032. Public works cost the town $713,735 and general government came in at $379,778.
Michael Howlett can be reached by calling 276-728-7311.