After presenting a copy of an audit completed for the year ending June 30 to members of the Evarts City Council on Tuesday, Certified Public Accountant Richard Scruggs said the city is “in good financial shape.”
“I’m sure you all have looked ahead for the coming year. I don’t see much change. We’ll have the same issues this year that we had in this audit here,” said Scruggs. “Coal severance money is going to decrease again. The economy is still bad and I think it’s going to get worse. You’re going to have more people leaving the city and people are another year older and retiring. You all are going to have a tough time, but I think you did an excellent job last year. You controlled the money coming in.”
Scruggs recommended the city “watch all their bills to make sure they are getting what they are supposed to be getting.”
“I think you did a good job last year,” said Scruggs.
Mayor Eddie Manning said even with a decrease in revenue for the city, he is proud the city is doing well financially. He said it has been a “tough year,” but the credit goes to city employees who are “watching their p’s and q’s.”
“Just remember to continue paying your debt down,” said Scruggs.
Scruggs also recommended council members make changes to their current budget to see if they are “going to be over or under budgeted on some things.” He added there was a reduction of $15,000 in coal severance funds compared to last year.
In his findings, Scruggs said there were two issues — one being segregation of duties. He said this finding was reported in the prior year and will continue to be a finding with a small office staff such as the city has.
“The more people you have the more control you can have,” said Scruggs.
The second finding was deficiency in compliance with ordinance due to the city’s bond covenants calling for a certain amount of funds be kept inside an individual fund for the refunding of the bonds.
Council members approved the audit completed by Scruggs.
Reach Nola Sizemore at 606-573-4510, ext. 115, email@example.com