During a special call meeting on Wednesday, Dec. 30, the Leitchfield City Council heard and approved its audit report for the 2014-2015 fiscal year.
According to auditor Jeff Carter, CPA, with Taylor, Polson & Company, PSC, out of Glasgow, the audit report was an unmodified, clean opinion with no internal control or compliance matters reported.
Carter said that the City of Leitchfield’s net position for the 2014-2015 fiscal year was $6.7 million, down from $8.7 million the previous year due to the city’s now being required to report pension funding as a liability on their books rather than an expenditure.
The federal government now requires all cities that participate in state-sponsored retirement plans to report pension funding as a liability, according to Carter.
Carter said pension funding was previously reported as an expenditure and, as a result, did not have as much of an impact on the city’s net position.
“The main premise is to get the information to you as decision-makers,” Carter said of the new audit requirement.
The pension liabilities for the City of Leitchfield’s 2014-2015 fiscal year totaled $3.1 million, according to Carter.
Carter also reported that between the budgeted expenditures and revenue for the year and the actual expenditures and revenue for the year, Leitchfield saw a $566,000 favorable variance, partially due to the city’s earning $400,000 more revenue than was originally budgeted.
Following Carter’s presentation, the City Council voted to approve the Fiscal Year 2014-2015 audit report.
Reach Matt Lasley at 270-259-9622, ext. 2015.