The Town of Orchard City is in overall good financial condition and all of the town's budget funds, except one, increased during 2012, according to auditor Pete Blair.
He gave his annual report to the town trustees at the regularly scheduled board meeting on July 10. Blair is also the financial auditor for Surface Creek's other municipality, Cedaredge, and for the county. Both of those local governments chose to have their 2012 audit reports delivered during work sessions.
Blair told the Orchard City trustees, "You are financially better off this year (2012) than you were last year (2011)."
In the light of losses suffered by a local municipal government due to lack of adequate accounting controls, the Orchard City audit report includes a disclaimer: "We did not design our review of the town's financial policies to detect all control weaknesses or irregularities that may exist within the town's operations. Consequently, we do not express an opinion on your internal control structure."
Nevertheless, the town's government has responded to a felt need for installing more stringent financial controls. The two members of the trustee finance committee now review every check in the town's register every month, and then report on their findings to the full board at each regular meeting.
Orchard City maintains six different budget funds. As an indication of overall health of the town's position, the balances in those six funds at the end of 2012 can be compared with those at the end of 2011. The only one of the six that did not post an increase was the Conservation Trust fund (composed of Colorado Lottery distributions). It declined from $60,629 in 2011, to $26,822 at the end of 2012.
The town's other funds did better. With a total of just over $5 million "in the bank," said Blair, his audit report showed individual fund balances as follows:
• General fund; $1.75 million in 2011, to $1.94 million in 2012.
• Water fund; $1.68 million 2011, to $1.87 million in 2012.
• Water capital construction fund; $646,812 in 2011, to $785,497 in 2012.
• Road maintenance fund; $303,680 in 2011, to $367,246 in 2012.
• Park and recreation fund; $94,621 in 2012, to $104,768 in 2012.
Mayor Don Suppes explained that a major part of the reason for the fund balance increases in spite of the sour economic situation was the the cancellation of a number of capital projects that had been budgeted, and savings realized by soem personnel changes.blog comments powered by Disqus