April 29, 2008 10:08 pm
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By Debby Woodin
dwoodin@joplinglobe.com
The city of Joplin’s net assets increased by about $19.6 million last fiscal year, a sign that the city is financially healthier than in previous years, according to a report by outside auditors.
It was the opinion of the auditor that the city’s financial statements, as prepared by the city Finance Department, were presented accurately and fairly, and were free of any material misrepresentation. The report states that all disclosures that are required by government accounting methods were made.
Auditors told the City Council at an April 7 meeting that among those employed by other cities they audit, the city’s finance director, Leslie Jones, was one of the most thorough and accurate in keeping the city’s financial statements.
The city’s outside accounting firm is Cochran, Head, Vick & Co. of Kansas City.
The audit report included tables and explanatory notes of the city’s financial statements and accounts that were prepared by the city but were not audited, the report noted.
Those tables show that Joplin’s total assets exceeded liabilities in fiscal 2007 by more than $175.6 million. Assets include streets, sewers, parks, public buildings, the airport, projects under construction, equipment and other holdings, as well as cash. Of that amount, the city had $25.4 million in unrestricted net assets available to pay its obligations and bills, according to the audit of the city’s fiscal year that ended Oct. 31, 2007.
The total assets were up from a little more than $156 million in fiscal 2006, according to the report.
“Net assets are an important measure of the city’s overall financial health,” auditors wrote. “The increases and decreases in net assets can be monitored to determine whether the city’s financial position is improving or deteriorating.”
While some of the increase in assets can be attributed to acquisitions, improvements and increases in collected taxes, some of it came from retroactive reporting of some infrastructure assets built or acquired before 2002.
The auditor told the council that the Finance Department has correctly made an effort to inventory and add infrastructure such as streets and bridges that previously had not been included in audits.
Sales taxes and motor-vehicle taxes provide the city with its largest chunk of assets. In fiscal 2007, total sales and motor-vehicle taxes collected were $30.1 million, up from $26.6 million the previous year. Property taxes amounted to a little more than $743,000.
The city collected $4.9 million in charges for services, up about $200,000 from the figure for 2006. It received $2.55 million in operating grants and contributions, and $5.8 million in capital grants and contributions.
On the expense side, the city spent more than $40 million to provide government services that include public safety such as police and fire protection, public works projects, street maintenance and construction, health services, cultural and recreational services, and social services.
Public safety was the largest expense at $14.4 million, followed by streets at $9.4 million, general government services at $4.7 million, and $3.9 million for culture and recreation.
Spending was up by about $4.8 million over the previous year’s figure, though the audit states that the city administration made efforts to cut spending where it could.
Auditor’s certification
The city’s financial statements earned a certificate of achievement for excellence in financial reporting as a result of the thoroughness and accounting methods the auditors found were used by the Finance Department, the City Council was told.
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