Auditor gives twp. high marks

Oxford Township’s finances got a clean bill of health plus some glowing compliments from the auditor last week.
‘Overall, I don’t have anything alarming to report, which I’m happy to tell you,? said auditor Rana Emmons, a certified public accountant and partner with the Plymouth-based firm Post, Smythe, Lutz and Ziel. ‘You did receive the highest opinion level possible in an audit, which is the unqualified opinion.?
An unqualified opinion is issued by an auditor when the financial statements presented give a true and fair view of a company or municipality’s condition, position and operations.
Emmons gave township officials a summary report of her firm’s audit of the 2010 fiscal year that ended Dec. 31.
Her assessment of the township’s financial management was most definitely a positive one.
‘Overall, you did increase the township’s net assets by approximately $635,000,? said Emmons, noting this is calculated by adding up all the township’s assets, including things like the municipal water system, then subtracting all the local government’s debt.
Included in those increased net assets were the 7 acres of land that the parks and recreation department purchased for $212,000 and added to Seymour Lake Park along with the new fire engine purchased for $500,000.
Speaking of debt, Emmons indicated the township lowered its debt load last year by refunding approximately $5.5 million in bond debt related to the fire department and public library. This move resulted in a ‘net present value savings? of about $464,000 between now and when the debt is paid off in 2016.
‘That is a direct savings to the township residents,? Emmons said. ‘Hopefully, in the big picture, you’ll be able to drop (reduce) the debt millage.?
Careful spending by the township board resulted in a $223,927 surplus for the 2010 fiscal year. Later in the meeting, township officials debated what to do with the excess funds. (See story on Page 5.)
Emmons noted how the township received approximately $600,000 in grant money from the federal government last year to construct new safety paths along W. Drahner Rd. and purchase equipment for the fire department.
In the end, Emmons thanked township officials and staff for providing their ‘utmost cooperation,? which ‘makes my life so much easier? and ‘lends itself to a smooth audit.?
She also complimented township officials for their willingness to listen and take action when needed.
‘What it all comes down to is management’s integrity and that’s the township board,? Emmons said. ‘When I lend a suggestion or recommendation, no matter how small or how big, the board reacts positively and immediately. That’s why you don’t have a letter of suggestions (or) recommendations.?
‘I’d like to take a little bit of credit, but I don’t want to,? said Supervisor Bill Dunn. ‘I do want to commend the accounts payable portion of the township (clerk’s department) and the accounts receivable portion of the township (treasurer’s department) for having, every year, a pretty nice audit. I’d like to commend the people that were a part of this (and) that work hard to ensure that we do have a good audit.?

Auditor gives twp. high marks added by CJ Carnacchio on July 20, 2011
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Lately, whenever the topic of finances comes up at government meetings, all you hear is doom and gloom as officials declare ‘The sky is falling! The sky is falling!?
But Oxford Township actually received lots of positive feedback from its auditor last week and scored high marks for its fiscal conservatism.
‘Given all the economic conditions out there and all the scary things that we hear and read about in the newspaper, I do have a positive financial report here to give you for the township,? said Rana Emmons, a partner at the Plymouth-based Post, Smythe, Lutz and Ziel, Certified Public Accountants.
Emmons presented officials with a summary of the audit report for the 2009 fiscal year.
She said the main thing auditors keep an eye on is the township’s general fund.
‘If something should happen, that’s the fund that’s going to bail anything or anybody out,? Emmons said.
That’s why it’s important to maintain a ‘healthy? fund balance in the general fund.
A fund balance is basically a government’s savings account that can be used to pay for things like unforeseen expenses and special projects or offset revenue losses.
As of Dec. 31, 2009, the township’s general fund had a fund balance of $1.8 million.
That was after the township board had allocated $390,000 from the fund balance to construct safety paths along W. Drahner Rd. and $150,000 for road paving projects on W. Drahner, Ray and Oakwood roads.
‘You do have a healthy fund balance in the general fund,? Emmons said. ‘So, I have no concerns this evening to convey to you.?
The township’s operating expenditures for 2008 and 2009 ‘remained about even.? The township spent $1.48 million in 2008 and $1.62 million in 2009.
On the revenue side last year, the township lost $100,000 in state revenue-sharing funds, plus another $100,000 in interest income from its investments, according to Emmons.
‘Given that, I think your general fund really ended up in great shape,? she said.
She noted that the $100,000 loss in interest income is ‘by no means a reflection on Treasurer (Joe) Ferrari.?
‘He’s done an outstanding job with the investments,? Emmons explained. ‘All along he’s able to seek out the best interest rates along with keeping the safety and liquidity for the township.?
Safeguarding the township’s money is ‘just as important if not more so? than ‘going after aggressive interest rates,? she said.
Emmons noted the fire department, public library and parks and recreation department all did a nice job of keeping within their budgets. They ended 2009 with fund balances of $1.82 million (fire/EMS/ALS), $1.4 million (library) and $259,000 (parks and rec.).
Looking at the 2010 fiscal year, which ends Dec. 31, Emmons said the township is projected to ‘just about break even.?
‘If you are in line with your budget, which I know the supervisor’s department does keep an eye on that, then we should be okay ending 2010, given (there are) no surprises,? she said.
The 2009 audit report can be viewed on line in its entirety at www.oxfordtownship.org.

Auditor gives twp. high marks added by CJ Carnacchio on August 18, 2010
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