Finance committee: cash position stable but income-tax receipts trail; auditors to begin GAAP testing

Summary

The finance committee reviewed year-to-date reports showing a $22.7 million cash position at the end of January and healthy enterprise funds, but the finance director warned income-tax receipts are at 15% of forecast versus an expected 17%. External auditors will begin GAAP-conversion testing the week of March 30 and members discussed adding bank-reconciliation controls.

The Fostoria Finance Committee met to review year-to-date financial reports and internal controls on March 9. Steve, the finance director, told the committee the city's cash position at the end of January was $22.7 million, with the general fund cash balance reported at $11.3 million and an unencumbered general fund balance of $9.1 million after $2.2 million in purchase orders were issued.

"Our ending cash balance at the end of January was 22.7 million," Steve said, adding that the water, sewer and storm enterprise funds are "healthy" and that the water fund has an unencumbered balance of $1.6 million and the sewer fund $979,000. He cautioned that purchase-order activity in the first quarter can make unencumbered balances appear lower until encumbrances clear.

Steve also flagged revenue timing issues. "The only item that caught my eye...is the income tax revenue. It should be at 17% of our annual forecast…

Finance committee: cash position stable but income-tax receipts trail; auditors to begin GAAP testing

Summary

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