City receives clean bill of financial health

The city of Fort Scott has received a clean audit regarding the city's finances for 2013.

Terry Sercer, of Diehl, Banwart and Bolton CPAs, appeared before the Fort Scott City Commissioners Tuesday to inform them of the firm's recent examination of the city's financial statements and that the city has received a clean audit for 2013. There were no violations of state or federal statutes found during the audit, Sercer said.

"The audit was completed about mid-May," Sercer said. "It's a clean opinion for the city."

Sercer said the financial statements included in the audit report "presents fairly" the financial activities of the city last year.

"It's what's called an unqualified opinion," he said. "The city should be credited for that. That doesn't happen with a lot of cities."

An "unqualified opinion," Sercer said, is the highest level of an opinion the CPA firm can issue for a city.

Sercer said the audit report shows funds in the city's general fund the last couple of months and the report indicates the city has about $1 million in that fund, which he said is a "good, healthy balance."

"The major funds all have healthy balances for operating expenses," he said. "Now the city has a lot going on in 2014 and some balances may go down, but these are good to start with."

Sercer also explained the reason for a letter sent by the firm to commissioners regarding the audit. The letter basically explains that the firm had no problems working with city management during the audit process, he said.

City Manager Dave Martin commended Director of Finance Jon Garrison for his work with the city budget and finances.

"Jon is doing a great job managing finances," he said.

Following Sercer's report, commissioners approved the 2013 audit report.

In other business Tuesday:

*Commissioners approved the consent agenda, which included appropriation ordinances totaling $656,120, and a $60,120 pay request from Home Center Construction, Inc., for repairs at the wastewater treatment facility.

* Approved publication of the 2015 city budget which reflects no increase in the mill levy. Garrison gave commissioners a rundown of the proposed budget and also said a budget work session is scheduled to take place from 5 to 6 p.m. Tuesday, Aug. 5, just prior to the commission's regular meeting in which commissioners will consider final approval of the budget. The published budget sets the maximum expenditures for city funds. Garrison said Aug. 15 is the deadline for the commission to make a decision regarding the budget. A public hearing on the proposed budget will also need to take place.

* Commissioners conducted a brief executive session that included commissioners, City Attorney Bob Farmer and Director of Economic Development Heather Griffith. Farmer said the reason for the closed session was for consultation with an attorney for the body or agency which would be deemed privileged in the attorney-client relationship. Commissioners took no action following the session.

More details on other commission business Tuesday, as well as details on the city's planned 2015 budget, will appear in a future edition of the Tribune.