No problems with Fayetteville’s audit, firm says

By JOHN MUNFORD
jmunford@TheCitizenNews.com

The city of Fayetteville has again received a “clean” audit from the accounting firm who evaluated its financial data for the fiscal year ending July 31, 2003.

This year, the presentation of the audit differed because of new accounting standards required by law, said Miller Edwards of the Macon accounting firm Mauldin and Jenkins. Edwards made a brief presentation to the city council Thursday night about the audit, and he encouraged council members to call him with any questions they might have after reading over the information he provided.

“We have no findings,” Edwards said, adding that “nothing alarming” was discovered in the audit review conducted by the firm.

One of the major changes in the city’s budget will evolve over the next several years as the city is allowed to tally streets along with curbs and gutters as fixed assets. That’s a part of the new law that will allow the city’s estimated assets to grow, Edwards explained.

Mayor Ken Steele cracked, “So there’s not much of a market for curbs and gutters?”

Edwards said the audit breaks down the city’s expenses into two basic categories: governmental and “business-type.” The governmental expenses account for most of the city’s activities, including public safety, public works and other general government activities. The “business-type” category reflects activities the city charges user fees for such as water and sewer operations, Edwards said.

The audit also features a new section called “Management’s Discussion and Analysis” which can provide interesting insight into the city’s financal status, Edwards added.

According to the audit, tax revenues accounted for 73.2 percent of the city’s total revenues for the year, while charges for services, grants, contributions, fines and forfeitures provided 26.8 percent of the city’s revenues. While the city collected $7.5 million in revenues for its general fund, property taxes accounted for just $1.354 million of the revenues. The city also collected $2.02 million in sales taxes.