By Myrna Trauntvein
Times-News Correspondent
Financially speaking, Nephi is in good shape and even
though the community-owned natural gas system continues to
have a negative balance, the number in red is less each
year.
Kedric Black and Kim Peterson of Peterson &
Associates, P.C., certified public accountants and the
city's financial auditors, attended city council meeting to
review the annual audit with council members.
Several small printing errors occurred in the prepared
audit document. Those errors were picked up as Blair
Painter, city recorder, and Randy McKnight, city
administrator, reviewed the draft document preparatory to
the meeting with the council.
"The negative cash amount in the gas department is
getting less each year," said Black.
The negative number does not jeopardize the total budget
for the city because it is understood and other monies fill
the void. Bonds on the system, borrowed to make construction
possible, will be paid in 2011 and the problem will be
solved. Until that time, said Black, the money issue becomes
less of a problem each year.
"In the final totals, all funds were positive," said
Black.
Total assets for the community were $20,480,253.
City management did shine in the general planning and
execution of budget money allocated, apportioned and
managed. The city did receive what auditors term a "clean
opinion," Black said.
The current portion of bonds payable has gone down
significantly, he said. In 2001, the current portion of
bonds payable was $275,000 as compared to $465,000 in
2000.
The capital lease payable reduced from $3,785,947 to
$3,431,792.
"Revenues for the city come from taxes, licenses and
permits, intergovernmental revenues, charges for services,
fines and forfeitures, interest income, contributions from
other funds, and other miscellaneous money," said Black.
Revenues of 2001 were $2,603,632 as compared to 2000 when
they were $2,247,245.
The taxes category of revenues includes not only general
property taxes of $185,000 but sales and use taxes, highway
taxes, franchise taxes and in lieu of tax money.
One note of interest is that building permits brought in
$52,989 which was $8,989 more than was anticipated in the
budget when it was set last year.
It would be wise for the city to develop a computer
networking system, he said. Such a system would allow
financial information to be more readily exchanged, compared
and checked.
One note the accounting firm made in their management
letter, said Black, suggested that even though the library
and golf course had only collected extremely small amounts
of cash collected from patrons, they needed to bank those
monies within three days of receipt.
"The accounts of the city are organized on the basis of
funds and account groups, each of which is considered a
separate accounting entity," he said. "The operations of
each fund are accounted for with a separate set of
self-balancing accounts that comprise its assets,
liabilities, fund equity, revenues, and expenditures or
expenses, as appropriate."
Governmental funds are used to account for the city's
general activities, The general fund is the operating fund
of the city used for all financial resources except those
required, by law, to be accounted for in another fund.
Special revenue funds, said Black, are used to account
for resources legally restricted to expenditures of
specified operating purposes for the acquisition of
short-lived fixed assets such as furniture.
Capital project funds are used for the acquisition or
construction of major capital improvements.
Black said the city currently has one capital project
fund with 19 projects: drainage and flood, street
improvement, street rehabilitation, library grants, airport
master plan, recreation improvements, public works building,
cemetery projects, urban forestry, downtown projects, city
hall projects, animal shelter, police grants, fire
equipment, golf course expansion, inter-park trail, parks
and cemetery equipment, new equipment, and city park
restrooms.
Proprietary funds are used by the city to include
enterprise funds, fiduciary funds, nonexpendable trust
funds, agency funds and account groups.
"Enterprise funds are used to account for operations that
re financed and operated in a manner similar to private
business enterprises," said Black. "The city maintains four
enterprise funds: water and sewer, electric, solid waste
collection, and natural gas."
Non-expendable trust funds are those funds held for a
time by the city but which cannot be spent by the city. For
example, the bail money paid to city court to allow a person
charged with a crime to be out of jail is one of these
funds. The money is held but not spent until the courts
determine the guilt or innocence of the suspect and until
the judge determines if any of the bail money should go to
the courts or should be returned to the suspect.
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