Friday, November 30, 2018

No news is good news rinse repeat




Goochland County supervisors held a special called meeting on Monday, November 27 to approve the certified annual financial report (CAFR) for fiscal 2018, which ended on June 30. For the second consecutive year, Goochland’s finances were pronounced sound as external auditor PBMares reported no material findings, a clean audit.

A recent state requirement that CAFRs be approved before the end of November precipitated the meeting. Mike Garber, PBMares partner who oversees the Goochland audit, said that many jurisdictions in the Commonwealth fail to meet this deadline.

The clean FY 2018 audit is especially important because it removes Goochland from the high risk category, where it landed as a result of  total disregard for sound accounting practices that resulted in a 2010 CAFR with 40 material misstatements. In 2011, the county treasurer was convicted of embezzling public finds and served time prison.

Earning a clean audit requires strict adherence to internal controls and scrupulous attention to proper handling of all financial transactions by every member of county and school staff and all Constitutional officers. Even for a small and relatively uncomplicated jurisdiction like Goochland, this requires much effort by many people every day.

Goochland County Administrator John Budesky commended Director of Financial Services Barbara Horlacher and everyone who made the clean CAFR possible for their hard work.

Garber congratulated all of Goochland’s management team on its recently earned AAA Moody’s bond rating. “You had your hands full a few years ago and really turned things around,” he said.

(Goochland County, which once had a bond rating worse than that of Detroit, now holds one higher than New York’s Westchester County, alleged to be the wealthiest county in the nation. It’s not how much money you have, it’s how it is managed that is important.)

Last year, the supervisors decided to extend the contract of PBMares, which had audited county books for several years. Sound accounting practices dictate that the audit team that prepares the CAFR change periodically. Lat year, the county  explored retraining another firm, but renewed its contract with PBMares, which is large enough to provide “fresh eyes” on the county books. This year’s new to Goochland audit team was headed by Kennon Johnson. Garber acted as “the face of the firm”  presenting the 2018 CAFR.

As in past years, the 2018 CAFR has been posted in its entirety on the county website http://goochlandva.us/ under the financial services tab. Aside from the facts and figures, there is much interesting information about the county and it is well worth perusing. Information about unfunded pension liabilities and other post- employment benefits (OPEB) is included for an accurate picture of county finances.

Horlacher also presented FY 18 year end results. Fund balance as of June 30, 2018 was $36,237,328. Of that, $1,890,095 is unspendable; $22,520 is restricted; $1,815,700 is assigned; and $14,083,500 is unassigned.

First quarter FY2019 projections are projected to exceed operating revenues by approximately $3.3 million. Ratios of debt service to general fund expenditures and other policies are well below policy thresholds established  to ensure fiscal stability.

Turn back funds (money budgeted but not used) of $97,157 from FY 18 were appropriated for the FY 19 school budget for a variety of purposes.

The supervisors also amended the FY 19 budget by appropriating an additional $10,000 to the Clerk of the Court budget for training and other educational costs. The money will come from the Clerk’s nonreverting local fund comprised of land recordation fees.

Please take a look at the CAFR. It’s your tax money and you should know how it is spent.










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