Auditors present Pelham’s financial statements

Published 9:54 am Tuesday, April 5, 2016

The city of Pelham votes to accept its audit report for fiscal year 2015 prepared by Barfield, Murphy, Shank & Smith, LLC. (File)

The city of Pelham votes to accept its audit report for fiscal year 2015 prepared by Barfield, Murphy, Shank & Smith, LLC. (File)

By JESSA PEASE / Staff Writer

PELHAM— After a presentation of the financial statements from fiscal year 2015, the city of Pelham voted to accept its audits at an April 4 meeting. The audit, which was prepared by Barfield, Murphy, Shank & Smith, revealed that the city is operating at an appropriate level.

Jenny Gray presented the report during a City Council work session. She said the audit found that the city’s net position for governmental activities, or most of the city’s basic services, increased by about $4.6 million.

During the year, the city had expenses of about $32.2 million for governmental activities and transfers of $3.6 million to business-type activities, which include Pelham’s water and sewer system, the Pelham Civic Complex and Ice Arena, Ballantrae Golf Club, Pelham Racquet Club, the garbage fund and rental fund.

The transfers to business-type activities were about $4.6 million less than the about $40.4 million generated in general and program revenues. The total cost of all the city’s programs was about $49 million.

The audit found the city’s combined assets exceeded its combined liabilities by about $43 million, according to Gray, which will “allow the city to continue to meet ongoing obligations to citizens and creditors.”

“Everything that was in here is, I think, what we expected from the processes that you went through and the questions you had to ask when you went through the audit,” City Council President Rick Hayes said of the audit. “We appreciate your time and effort. We know these aren’t easy. This is very valuable to us.”

Gray said the audit was done in two parts this year: The regular audit and the single audit. The single audit was required because the city expended more than $500,000 in federal funds.

Hayes asked the representatives from Barfield, Murphy, Shank & Smith if they were comfortable with Pelham’s current standing as far as operating. Both representatives told him the city has a favorable amount of cash, which puts them in a good position.

The City Council also:

  • Authorized Mayor Gary Waters to execute a memorandum of understanding with the Pelham Board of Education in regard to the architecture and design of the recreation center.
  • Executed an agreement with Meridian Graphics related to three editions of the Pelham City News.
  • Approved an agreement with RiverTree Systems, Inc.
  • Accepted a bid of $617,300 from Goldman Contractors, LLC for the Highlands Community Booster Pumping Station.
  • Heard the first reading of an ordinance that would establish Health Insurance Benefits for retired employees and their surviving spouses.