City receives unqualified audit report


At the outset of the financial report given to the Henderson City Council at its regular Monday night meeting, Assistant Finance Director Sandra Wilkerson reminded members that the city has been going through “financial difficulties” for the last three-to-five years.

Wilkerson said that the city is doing better and showing improvement from the last year, but that its goals have not yet been met.

The assistant finance director told members that she did not advise them to lift restrictions that have been imposed even though the audit looks better.

Mike Bradford of of the accounting firm Phillips, Dorsey, Thomas, Waters & Brafford, the firm retained to perform the required yearly audit, told members that the city had revenues in fiscal 2008 of $16.5 million, about $500,000 more than had been budgeted. He noted that there was a change in the fund balance of $1.1 million, bringing the unrestricted fund balance to $2.2 million, or about 14% of the total budget.

The North Carolina Local Government Commission (LGC) requires a fund balance of no less than 8% of a municipalities budget and recommends a balance of at least 24%.

The city’s fund balance goal is 38% of its budget.

According to Bradford, the tax collection rate slid to 93.4% from 93.8% in fiscal 2007.

“You had a good year,” Bradford summarized.

On a negative note, the CPA told members that the sewer fund ended up with a $38 net gain. He told members that they “may want to consider looking at that”.

The complete audit may be accessed from the following links:

Table of Contents

Introductory Section

Financial Section

Notes to Financial Statements

Supplementary Information

Statements and Schedules

Statistical Section

Compliance Section