The annual town audit shows Seymour has slightly less cash on hand due to the recession.
The report also makes a few recommendations for how to run a better financial operation.
Audits give a picture of the town’s financial reporting and a glimpse at financial health.
Overall, Seymour’s in pretty good shape, according to First Selectman Paul Roy.
“The town is doing pretty good. We were able to spend less than the previous administration had wanted to,” Roy said.
Total expenditures were $47.3 million. Revenue was $46.7 million, less than the projected $49 million.
The audit shows actual expenditures in Seymour totaled $1.7 million lower than budgeted.
“These positive variances are the result of the town’s conservative budgeting,” the document states.
Audit report follows. Article continues after the document.
Audit Financial Statements 2009 – 2010 FY
The fund balance for fiscal year 2009 – 2010 stood at $2.9 million, down from $3.4 million.
The fund balance is like the town’s savings account, proving solvency for borrowing purposes, and it would be nearly impossible to have an improved fund balance without cutting expenses or increasing revenue, said W. Kurt Miller, a member of the Board of Selectmen who is a former chairman of the Board of Finance.
“If we continue to eat away at the fund balance it is going to be a problem,” Miller said of the report.
The fact that expenditures were lower than the budget had been allocated for is a positive sign, said former First Selectman Robert Koskelowski, who was in office for some of that budget year.
“That’s pretty good for the economic times. One thing I was very pleased about is every department spent less than they were allocated,” Koskelowski said.
Roy said the town has been keeping an eye on spending.
“In January, I ordered town departments to cut back on spending and that’s what happened,” Roy said.
Miller and Koskelowski said Friday they are considering running against Roy for the town’s top job this year.
Some of the recommendations for improvement include that purchase orders should be made before town purchases are made. The study found that invoices were sometimes dated after items were purchased, if at all.
“The purchase order system was incorrectly used,” the study by James A. George said.
The study also found that numerous cash accounts did not agree with the general ledger.
On those at points and others, Roy said they are minor issues and are already being addressed.
“The management letter pointed out issues to be corrected, and I was assured by the finance dept they are working to address those issues,” Roy said.
