Morenci receives good audit report 12.01.2010

Posted in 2010 December

By DAVID GREEN

Morenci city council heard nothing but positive news from the annual audit presented Nov. 22.

CPA Philip Rubley told council that, as of June 30, 2010, city finances were in the best shape in many years.

“It’s probably the best position I’ve seen the city in in a long, long time,” he said. “This is a very good report.”

Revenue dropped, but expenses also went down in nearly every category. Expenses were held to within $6,000 of the previous year, Rubley said. He added that this was the closest he’s ever seen the city in regard to anticipated and actual spending.

The city’s general fund stood with a fund equity of $267,212, boosted by an excess of $112,342 from the past fiscal years.

“That’s the good news of the night,” Rubley said. “The last two years you’ve taken your fund equity position—which I thought was compromised and in jeopardy—and brought it up to a strong position.”

The auditor recommends savings equal to three months of operating expenses to cover unexpected financial challenges, and the city is close to that.

Rubley told council this is the closest he’s ever seen proposed expenditures match up with actual spending, through almost every category. Revenue dropped by about $14,000, but less money was expected and budgeted accordingly.

The budget called for a year-end fund balance of $219,000, but ended $47,296 better.

“This is really very good,” Rubley said.

But did you do the things that you needed to do with the resources available? That’s the key to success, he said. It’s easy to have an excess if needs are not taken care of.

STREETS—The local street fund generally never has enough money, Rubley said, but Morenci’s look strong. The major street fund is also in a strong position.

FIRE—The department benefitted from $92,530 in grants and shows an equity of $28,012 for equipment purchases.

EMS—There have been problems in that fund, but it’s really improved substantially and appears to be on track.

The key is to successfully collect receipts from third parties. The administration needs to keep on top of the issue.

At the end of the fiscal year, the EMS showed an excess of $97,542, based on what was billed.

“This is the best position I’ve seen since it started,” Rubley said.

It’s very good, he said, with caution.

UTILITIES—Utility funds often show a deficit, he said, but there’s an equity of $109,000.

“These costs are under control and your revenue stream is good,” Rubley said. “I think you’re sitting in very good shape. To be in the positive is extraordinary.”

Rubley also praised the city’s accounting system as operating well.

Morenci mayor Keith Pennington welcomed the good news, but he reminded council that it’s for the past year. New expenses are coming and some revenue streams might go down, so council will need to remain cautious  and vigilant despite the healthy fund equity.

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