County audit gets clean bill of health
Lee County Government’s annual financial audit, released this past week, includes a clean fiscal bill of health and shows the county is well positioned to handle the upcoming economic challenges of reduced revenues, according to a press release from the county.
The audit, performed by KPMG, a “big four” international accounting firm, is for the period ending September 30, 2008 (the end of the county’s fiscal year).
KPMG issued an unqualified, or clean, opinion of the county’s financial position and financial statements based on generally accepted accounting principles. Additionally, KPMG’s annual management letter contained no recommendations for improvements in internal controls, the release said.
The Comprehensive Annual Financial Report can be viewed at http://www.leeclerk.org/CAFR/LeeCountyFY08CAFR.pdf.
The report shows total fund balances for the county including the general, library, mstu, capital improvement, and business unit funds (utilities, solid waste, tolls) decreased from $924 million in 2007 to $900 million in 2008, the press release stated.
The fund balance of the general fund the county’s most discretionary monies increased from $249 million to $275 million, with the designated portion decreasing from $125 million to $111 million, and the undesignated portion increasing from $124 million to $164 million.
The primary reasons for the increase in undesignated reserves was due to the county’s contraction in workforce (200 positions have been deleted and the county is holding another 150 vacant), reduction in operating expenses, and higher than expected return of revenues by constitutional officers, according to the release.
In 2008, the county took the following measures to reduce expenses, according to the press release.
Reduced positions through layoffs, an early-out program, and attrition/vacancies.
Froze salaries.
Eliminated certain post-retirement benefits for new employees.
Reduced operational expenses across the board.
The $164 million of undesignated reserves will help the county manage a projected $100 plus million reduction in revenues in the upcoming fiscal year budget (2009-10), according to the release.