Accounting firm OK’s statements in annual audit.
By SHEA JOHNSON
Posted Mar. 9, 2015 at 5:46 PM
VICTORVILLE — The accounting firm hired to audit the city’s financial statements recently offered a clean bill of health for fiscal year 2014, also noting vast improvements to how the city tracks its finances.
“I’d be remiss if I did not acknowledge the tremendous improvement we’ve seen of your accounting processes over the last three fiscal years,” said Ken Al-Imam, with Irvine-based Mayer Hoffman McCann P.C.
Al-Imam, who didn’t clarify what improvements were seen, presented the City Council last week with the firm’s findings after auditing the city’s annual financial report covering July 1, 2013 through June 30, 2014.
The firm concluded that there was a low risk of significant material misstatement within the report.
Summarizing major figures to the dais, Al-Imam said that general fund revenues exceeded expenses by about $185,000 in fiscal year 2014, although that was a much lower number than the prior year, when revenues outpaced expenses by roughly $3.5 million.
The general fund’s end performance in fiscal year 2013, however, was significantly skewed by portions of a $54 million settlement received from engineering firm Carter & Burgess for the failed Foxborough power plant, he said.
The city reported about $49.8 million in general fund revenues for fiscal year 2014, against roughly $49.6 million in expenses. In fiscal year 2013, the city reported $49.4 million in revenues, compared to $45.8 million in expenses.
Al-Imam attributed the extra outflow in fiscal year 2014 to more dollars being spent on public safety and public works projects.
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