Martin Starnes and Associates, CPAs, P.A., an independent accounting firm, performed the audit for the Town of Elkin for the most recent fiscal year ending June 30, 2012.
According to Matt Braswell, an accountant with Martin Starnes and Associates, the Town received an unqualified opinion on its financial statements, which is the best opinion that can be given in an independent audit.
Matt discussed some of the financial highlights for fiscal year 2012 for the Board of Commissioners on Tuesday night, including information on property taxes, fund balance and current year revenues and expenditures.
The assets of the Town of Elkin exceeded its liabilities at the close of the fiscal year by $10,519,665. The Town’s net assets decreased by $7,365,147 for the fiscal year ending June 30, 2012. However, the largest portion (73%) reflects the Town’s investment in capital assets (land, buildings, machinery, or equipment) less any related debt still outstanding that was issued to acquire items. Net assets may serve, over time, as a critical indicator to determine a municipality’s financial condition.
According to the audit, the Town uses capital assets to provide services to citizens noting that these assets are not available for future spending.
As of the close of the current fiscal year, the Town of Elkin’s governmental funds reported combined ending fun balances of $2,522,481, with a net decrease of $327,924. Approximately 46.6% of this total amount, or $1,174,811, is non-spendable or restricted.
At the end of the current fiscal year, the available fund balance for the General Fund was $1,817,842, or 38%, of total General Fund expenditures and transfers out for the fiscal year.
The Town of Elkin’s total debt decreased by $174,899 (6%) during the current fiscal year, per the audit.
“Our actual results were better than we budgeted,” said Assistant Town Manager/Finance Director John Holcomb.
The Town has undergone a successful debt refinancing strategy that has resulted in consolidated savings of $488,918 with $59,506 being achieved this year. The refinances were of Town Hall, the Public Works facility, the Booster Pump Station, and for debt associated with Waste Treatment Improvements.
According to the audit, the accounting policies of the Town of Elkin conform to generally accepted accounting principles as applicable to governments.
Holcomb indicated to The Tribune that the Town is working on getting the audit online for residents to view and have access to it.