City receives audit report

The city of Gatesville received a positive review in its annual fiscal audit and has a net position of $22.6 million for the most recent fiscal year - an increase of more than $2 million from the previous year.

That was among the good news shared by Susan LaFollett, who conducted the audit for Vail & Park, a certified professional accounting firm based in Richardson. The report was presented to the Gatesville City Council during its April 25 meeting.

The auditor's opinion was unmodified, meaning the city earned high marks for its financial standards and received a clean bill of health in the report.

"There was one significant deficiency based on the closing process but it was an upgrade from the previous year," LaFollett said. "It's going to take two or three years to resolve, but the city has made an improvement."

The city has an unassigned fund balance of $2.4 million, which is up from $2.1 million the previous year and represents a reserve of 4.3 months, LaFollett said, adding, "that's very positive. We like to see at least three to six months."

She noted that there were 18 audit adjustments, which was done from more than 30 the previous year.

Among recommended improvements are: refining the capital assets and depreciation schedule, making adjustments to accounts payable, using purchase orders for large projects and making a software change in wages payable.

"Also in fleet management you have a large number (of vehicles) handled as leases," LaFollett said. "We recommend you keep a close handle on that. Also the firemen's fund, which is small - make sure it's properly accounted for."

Mayor Gary Chumley asked if the city's software is adequate.

"It's a good tool," LaFollett said. "Very little was in place when Mike (Halsema, the city's finance director) got here. He's working to get these policies and procedures in place."