Payette finances receive clean bill of health

Kurt Folke, upper-left corner, of Quest CPAs addresses the Payette City Council about its audited financial statements on Monday. While the statements comply with state guidelines, some funds could be better according to Folke.

PAYETTE — It being a new year, the city of Payette is off to a good start in the finance department. This is according to Kurt Folke, a certified public accountant with Quest CPAs, who presented his findings on the city’s audited financial statements for fiscal year 2019-20 to the Payette City Council during its regular meeting on Monday.

The audit covered financial statements running through Sept. 30. Following are excerpts from the report.

Total current assets

• Governmental activities: $1,795,484

• Business-type activities: $7,849,282

• Total primary government: $9,644,766

Total assets and deferred outflows of resources

• Governmental activities: $10,314,013

• Business-type activities: $15,220,312

• Total primary government: $25,534,325

Total liabilities

• Governmental activities: $2,097,612

• Business-type activities: $1,455,675

• Total primary government: $3,553,287

Program revenues (total primary government)

• Expenses: $6,657,654

• Charges for services: $3,061,490

• Operating grants and contributions: $17,311

• Capital grants and contributions: $4,300

• Net (expense) revenue: ($3,574,553)

Total Governmental Fund Balances: $1,643,847

According to the report, amounts noted for governmental activities in the statement of net position are different because: 

• Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds [$7,658,782]. 

• Certain receivables are not available to pay for current period expenditures and therefore are deferred in the funds [$151,637]. 

• Certain liabilities, including accrued interest, are not due and payable in the current period and therefore are not reported in the funds [($1,091,659)]. 

• Net pension asset and liability and related pension source deferred outflow and deferred inflow of resources, are not due and payable in the current period and therefore are not reported in the funds [($146,206)]. 

Net Position of Governmental Activities:  $8,216,401

In terms of special revenue funds, the city’s revolving loan fund balance was $72,226, down $20,617 over 2018-19. However, its health insurance fund was at $150,973, which was up $22,706 from the year prior. Capital project funds were also up $133,015 over 2019-20, for a total of $525,466. The sidewalk fund was at $2,956, with no such funds available the prior year.

The city’s general fund reserve was $720,156. Folke observed that this and several other operating reserves would last for just over three and a half months in an emergency situation, and recommended to the council that this reserve be increased to approximately $1.2 million, and others similarly adjusted to allow a six-month buffer.

“[The general] fund is primarily financed by property taxes,” noted Folke, who added that such are taxes are collected in January and July. “You want to make sure you have enough in that fund in order to bridge [the gap in between collections].”

However, in the report, Folke said he found no items to be out of compliance with Idaho Code.

“The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards,” it read.

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