BY TIMOTHY LA ROCHE
[email protected]
CLAREMONT — A recently released citywide audit found no reporting deficiencies or significant weaknesses in Claremont financial practices.
A report released last month by Vachon, Clukay and Company PC details the findings of the latest Claremont city government audit. Certified Public Accountant Bob Vachon and lead auditor Tammy Webb presented their findings to city councilors.
The audit covered city government during a year-long period ending June 30, 2017. The report details no financial misstatements from city staff cooperating with the auditors and no significant risk for fraud.
“For the past fiscal year, for our independent auditors report we gave an unmodified opinion on all of the financial statements for all of the reporting units,” Webb said.
The city also received an unmodified opinion on its federal financial compliance audit, which covers the reporting, compliance and expenditures of federally awarded grant funds. The unmodified opinions mean that auditors essentially agreed with the financial records presented to them by city staff.
General Fund revenues during the audit period exceeded budgeted estimates by nearly $1 million. An additional $1.3 million was transferred to the General Fund after the closing of the River Road Tax Increment Finance District.
Total expenditures throughout the year were also $890,000 less than the appropriated amount, meaning that more money was budgeted than actually spent.
According to City Manager Ryan McNutt, much of the savings was the result of understaffing at the Claremont Police Department.
“On the police department side, because we were down so many officers, we had significant savings in that payroll,” McNutt said.
Throughout much of 2017, staffing was less than half at the 25-person capacity police department. In mid-June, staffing reached a low of 11 patrol officers.
“The end result is your city’s ending was approximately $1.9 million higher than you originally budgeted or anticipated,” Webb said.
Fund balance — the difference between the total city assets and its cash outflows — totaled $5,006,745.
Claremont fund balance policies during the audit year required that the city maintain five to 15 percent of its total budget as fund balance.
In January 2017, the city also increased water rates. The move upped revenues by $132,600 to $1.7 million. The net loss also decreased from $247,000 to $140,000.
A water rate study was completed in the fall of 2016, with councilors voting to increase the rate shortly thereafter.
Study findings included delayed work on water projects due to low Water Enterprise Fund revenues.
“I want to report some good news that the rate increase is working,” Webb said.
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