City's 2018 Financials Receive High Praises
from Audit firm PB&H
The City of Richmond’s Commission heard this week that the prior year’s financials earned an unmodified or clean opinion, the highest level of assurance that can be given to a city. PB&H Audit partner, John Manning, shared the results of the audit for the 2018 fiscal year ended September 30, 2018, with high praise for the City’s financial position. This was PB&H’s first year to perform the audit for the City of Richmond, which typically introduces a few growing pains, but he said none occurred. The Firm performed 15 fraud interviews, a standard practice, with zero findings. The cash handling departments were reviewed as well with no discrepancies noted. Mr. Manning added, “The City staff does an excellent job of putting [the financial statements] all together.”
As well, the General Fund balance was $5.93 million which would be operating reserve available to meet emergency needs or unforeseen items necessary to provide for citizens, which exceeds the Government Finance Officers Association ‘Best Practice’ of 90 days. Unlike a standard business, a municipality is encouraged to have a 90 day Fund Balance at any given time which allows a city to meet the needs of its citizens during catastrophic events (like a hurricane, or more recently, the Deer Park ITC tank fires). In the City of Richmond’s case, the reserve provides a stronger security net to the residents of Richmond for a period of 134 days should a public calamity occur.
The City also engaged a single audit this year which required additional audit procedures be performed in conjunction with the normal testing during the annual financial audit. The same results of no findings were identified. A single audit is required when an entity spends more than $750,000 in total Federal funds. Had it not been for Hurricane Harvey, the City would not have had to add the additional audit testing and subsequent report that follows; however, the City again passed with glowing results.
The City of Richmond ended fiscal year 2018 with a clean opinion for both audits, which means a very strong ‘bill of health’ once again!