Feb. 26, 2014 — The annual audit of the City of Olive Hill’s finances was presented to City Council during its monthly meeting last Tuesday night.
Lori Dearfield of Kelley, Galloway and Company, the firm that performed the audit, presented the findings.
“The results of our tests disclosed no instances of non-compliance or other matters that are required to be reported,” said Dearfield in her report.
The city’s assets exceeded its liabilities at the end of the fiscal year by $13,725,712 and its total net position increased by $1,384,561 from the previous year.
At the end of the fiscal year, the city had total outstanding debt of $1,932,165 which is an increase of $205,063 from the previous year.
The largest outstanding debt is the $340,116 balance on a loan from the Kentucky Infrastructure Authority.
Those funds were used to make improvements to the city’s water systems that were part of an agreed order handed down from Kentucky’s Division of Water.
Other notable debts are $115,233 remaining on the loan used to finance a new garbage truck and $74,158 on a loan used to purchase new fire equipment.
According to the report, the city saw a budget deficit of $662,038 between estimated and actual revenues.
The largest shortfall was reported in the area of grants, which originally budgeted for $983,240 in revenue but only managed to bring in $375,165 – a difference of $608,075.
“General fund revenues were less than budget primarily resulting from not receiving grant funds until after year end,” says the report.
The largest chunk of that number was a Community Development Block Grant totaling $500,000 awarded to the Olive Hill Historical Society.
The organization did not receive a qualifying bid to begin the old high school restoration project until after the end of the fiscal year.
The current fiscal year ends June 30 of this year but the audit report for the year will likely not be finalized until early 2015.
Joe Lewis can be reached at email@example.com or by telephone at 286-4201.