town of portsmouth presentation 2013
TRANSCRIPT
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Town of Portsmouth
2013 Financial Statements
April 25, 2014
Presented byJames Wilkinson
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Introduction
Presentation will review the Town’s 2013 Audit Results
Feel free to ask questions at any time
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Town General Fund
Total Fund Balance increased by $706,365
Budgeted change was zero
Unassigned Fund Balance = $5,098,694
Unassigned Fund Balance represents roughly 10% of Operating Budget
Current level is on low-end, but within Town’s fund balance policy target of 8-15% of budgeted expenditures
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Fund Balance: last 14 years
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Results of Operations
Revenues were above budget by $408,798
Property taxes $407,605 above what was anticipated
Tax collection percentages:
• 96.99% collection of current year assessment (93% PY, Budgeted at 96% in current year)
• 100.6% collection of current and prior assessments outstanding when compared to current assessment
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Tax Collections: Percent of current levy
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Results of Operations (continued)
Expenditures were $77,421 above appropriated amounts
Net transfers to other funds under budget by $457,077
Significant unfavorable results in these areas:
• General government
• Public Safety (due to change in reporting of details)
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Net Bonded Debt per capita
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School Department
Unrestricted fund ended year with fund balance of $3,980,737, with $3,922,963 committed for educational purposes
Fund balance is accumulation of all prior year balances, less current year deficit of $328,869
School grant/restricted funds recognized $1,110,330 in activity
Revenues were $22,516 below anticipated amounts
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School Department (continued)
Expenditures were $1,278,899 below appropriations
Transfer to other funds of $1,500,000 – Capital Project Fund
Current year decrease in fund balance of $328,869 recognized
School Lunch Fund recognized net loss of $28,064
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Wind Turbine
Revenues amounted to just $55,120 (down from $324,197 in prior year due to mechanical failure)
Operating expenses were $71,358 (no depreciation recognized due to lack of operation)
Interest expense was $28,344 for the fiscal year
Advances from general fund of $237,355 utilized to fund operations (fund owes general fund and school fund total of $492,297 at year-end)
$199,714 of revenue bond principal retired during year
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Transfer Station
Revenues amounted to $554,501, down from prior year revenue of $582,454
Expenses were $513,140, down from prior year amount of $522,237
Operating income of $41,361
Fund has net assets of $138,716 – with $59,138 of that invested in capital assets used in operations and $42,216 reserved for recycling
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Town Pension Plan
Funded status has varied: 80.1% funded as of 1/1/2000 60.6% funded as of 7/1/2010 61.5% funded as of 7/1/2011 52.7% funded as of 7/1/2012
(significant decrease in expected rate of return on investments reflected – 6.75%, prior rate used was 8%)
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Town Pension Plan (continued)
Funded status has varied (continued): 52.1% funded as of 7/1/2013
• $3.75 million unfunded actuarial accrued liability at 7/1/2013
All actuarially required contributions have been made
Continue taking steps to manage cost of future benefits
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Other Post-Employment Benefits Town plan ended year with accumulated balance
of $402,179 available for benefits Based on latest actuarial data available, combined
unfunded liability is in excess of $17.4 million Combined actuarially determined contribution was
approximately $1,841, 000 while actual contributions aggregated $1,284,000 (69.7% of required contribution)
While full funding of benefits is highly recommended, it is not currently required by law or accounting standards
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Observations and Recommendations
A-133 Single Audit is in progress and all observations, findings and related recommendations will be presented at completion.
Delays in audit process due to personnel turnover. Significant efforts required to close Town accounting records and prepare annual financial statements.
We received complete cooperation from management and staff while conducting the audit.
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Questions?
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Thank You.