BERLIN – The town again received a clean opinion following its annual audit.
Staff from PKS and Co. told officials in a presentation at this week’s council meeting there were no issues to report following the annual financial check.
“I’m happy to report our opinion on the town’s financial statements is unmodified,” said Michael Kleger of PKS.
According to Leslie Michalik of PKS, the town’s general fund in FY 2016 increased $875,000 over the previous year. She said the balance at the end of the year, slightly more than $8 million with $1.8 million designated, meant that the town had $6,571,000 to carry forward.
“This represents 18 months of average operating expenses,” she said, adding that the town had had a pretty strong fund balance for the past six years.
She said the town’s largest source of general fund revenues was property taxes. Revenues in FY2016 increased $360,000, or 7 percent.
As for expenses, aside from capital outlay the largest area of expense for Berlin is public safety. Michalik said the town spent $1.9 million, or 24 percent, on public safety. General government expenses accounted for 18 percent of expenditures while public works costs equated to 12 percent.
She pointed out that capital outlay was dominated by the town’s $2.5 million purchase of the former Tyson property. Other capital expenses included a few new vehicles, accounting software and sidewalk repairs.
Michalik said the town’s four utility funds — water, electric, sewer and stormwater — had a net position of roughly $19 million. There was a deficit of $585,000 but she said that was attributable to the sewer fund.
“The sewer fund has pretty consistently been operating at a loss,” she said.
Kleger explained that that was primarily because of depreciation expenses.
“Depreciation went up when we upgraded the plant,” Mayor Gee Williams pointed out.
Kleger said when it came to internal controls, his company’s review of the town’s financial practices revealed no problems.
“I’m happy to report there were no material weaknesses or compliance issues,” he said.
