The city of Covington has been issued an unqualified 'clean' opinion for its 2007 audit. The city ended the fiscal year in December with a fund balance $24.4 million.
In a presentation on the results of the audit at the city council's Monday meeting, Wade Sansbury, with the certified public accountant firm Mauldin & Jenkins, which conducted the audit, said he wanted to "tip my hat off to you" the city council for the city's "good financial situation."
"2007 was a very good year for the city," Sansbury said, adding that most of the city's financial success was as a result of the sale of Covington Cable.
According to the audit report, city assets exceeded liabilities at year end by $141.2 million. Of that amount, $60.2 million may be used to meet the city's ongoing obligations. The city's total net assets increased by $24.2 million as a result of increases in both governmental and business-type activities. The increase was largely the result of the city's sale of its cable system.
The reported year end government funding balance of $24.4 million was an increase of $15.9 million from last year. The increase was again mostly the result of the sale of the cable system and transfers from city enterprise funds. As of December, approximately 99 percent of the $24.4 million was available for spending at the city's discretion.
The city's revenues for FY2007 totaled $110.9 million. Of that amount, approximately 22 percent were generated by governmental activities and 78 percent were generated from business-type activities.
It should be noted that in the eight months that have passed since the close of FY2007, the city's fund balance is likely to have changed.
In other city council news:
The city council approved the writing of a letter by Mayor Kim Carter in support of a city application for a Northeast Georgia Regional Development Center grant. If awarded, the Georgia Initiative for Community Housing Grant would provide the city with three years of technical assistance from the RDC in the city's efforts to rehabilitate some of its older and lower-income housing.
The council approved a low bid from Consolidated Disposal Systems, Inc. in the amount of $186,300 for a 2008 Front Loader Sanitation Truck for the city's sanitation department.
The low bid for a 2008 midsize truck for the Water Reclamation Department in the amount of $19,864 was approved from Covington Ford-Mercury Inc.