City’s gas fund down from last year due to warmer weather

By Stephanie Johns
Staff Writer

Madison’s assets exceeded its liabilities by almost $30.8 million while the city’s assets increased by almost $240,000, according to the audit report titled City of Madison, Georgia Management’s Discussion and Analysis.

The city’s actual total revenues for FY2012 stood at more than $3.7 million while actual total expenditures stood at almost $4.4 million, a difference of more than $635,000.
During their recent meeting, members of the Madison Audit Committee heard the audit report for Madison for FY2012, which ran July 1, 2011 through June 30, 2012.

Wayne Tamplin, a partner at Treadwell, Tamplin & Co., said that the city has had another good operating year.

“It’s a good report,” he said.
Treadwell, Tamplin & Co. Audit Manager Carrie Wilkins, CPA, said that the city’s liquidity ratios have improved over the last year, up to 9.39 from 6.91.

Wilkins later said that “liquidity ratios” pertain to the amount of money available to pay off liabilities.
As to the city’s fund balance-to-expenditure ratio, Wilkins said that is down to 23 from 27.

The city’s gas fund is down somewhat from previous years, also. This is due to the warmer winter last year. The gas fund’s income stood at more than $151,000 for the year, a loss of more than $148,000.
Ex-officio member City Manager David Nunn agreed that the “abnormally warm” winter negatively impacted the city’s gas fund. He noted that the city has added some chicken farms, which should positively impact that fund.

Wilkins noted that the city spent money on additions to its gas system which will result in more volume. For FY2012, though, that means a negative $344,312 for that fund in its cash flows category.
As for the city’s water and sewer fund, Wilkins said that this is one of the first years that Madison will show a loss in that fund.

When it comes to accounts receivable turnover for the water and sewer fund, 12 is ideal. For FY2012, Madison had an 8.50, which Wilkins said is not as good as it has been but it is not a “significant decrease.”

She added that the city’s debt service coverage for that fund has remained consistent at 1.92 for the second year.

Wilkins noted that the city’s charges for services decreased from almost $6.5 million in FY2011 to about $5.8 million in FY2012.

As to capital asset additions, these include several expenses, including $150,000 for seven acres on the corner of College Drive and North Main Street. They spent almost $150,000 of Special Purpose Local Option Sales Tax (SPLOST) money to expand the Public Safety Building. They also spent more than $85,000 on a John Deere 5101 E Tractor with a mower.

Nunn told those present that the Madison City Council has named City Accountant Karen Guinn as an ex-officio member of the committee. He added that Guinn has received CFO status through the state.
Committee members voted to share the audit report with Madison Mayor Bruce Gilbert and Madison Councilmen at their January meeting.

Printed in the January 3, 2013 edition