News
When
is healthy too healthy?
Gray Town Audit is in
By Elizabeth Prata
Gray-Town Auditor Greg Chabot delivered the official
audit and presented his findings to the Council and
audience Tuesday night. Chabot is from Runyon Kersteen
Ouellette and he said that after scrutinizing the
Town's books it received an unqualified opinion and
had no material weaknesses in its internal controls.
The 2004 cash and investments increased from 2003
by almost a million dollars. "The increase was
primarily the result of an excess of revenues and
other financing sources over expenditures of $1,085,478."
Part of that, Chabot said, is that the town is doing
better in its collecting. Its collection rate is up
to 95.74%, the highest in five years.
The tax commitment has gone from 5,436 in 1999 to
8,642 in 2004.
The Undesignated Fund Balance had grown again, and
is up to 34.5% of the budget. The Town created an
UFB Policy that recommends to itself that the town
keep up to 16% of extra money on hand.
"The Town's fund balance policy calls for a target
amount of unreserved and undesignated balance equivalent
to two months of operational expenses, amounts held
in receivables and the Crisis fund, the Auditor stated
in his report." The current balance is twice
more than their own recommendation.
Chabot said noted this, saying, "You can see
you are well over by any objective measure. You have
a healthy balance. The question is, when is healthy
too healthy?" Chabot said that having such a
high balance is nice for creditors to see when and
if the Town goes for a bond. It is also a great cushion
for unforeseen circumstances. However, there was no
indication from Council or Manager during discussions
on this topic or on the tax cap impacts that the extra
funds would be used in the event that the tax cap
passes, though. The UFB has about 4 million dollars
in it.
The full audit is available at town office, as are
summaries to read, complete with graphs.
Tax commitment has gone from 5,436 in 1999 to 8,642
in 2004.
The
Undesignated Fund Balance is about $4 million and
represents 34.5% of budget.
