Journal-Times (Grayson, KY)

Local News

February 5, 2014

Grayson Utilities audit finds no issues

Feb. 5, 2014 — The annual audit of the Grayson Utility Commission revealed no significant financial issues, according to a report released Friday at the agency’s board meeting.

The audit was conducted by Kelley, Galloway and Company, PSC, an Ashland public accounting firm that handles audits for several local government entities and taxing districts in the county.

“During our audit, we did not identify any deficiencies in internal control,” the report states.

According to the report, the Utility Commission’s net position increased by a total of $109,204, compared to the previous year.

Net position is calculated by tallying the organization’s assets and then subtracting its liabilities.

“By far the largest portion of the Commission’s net position reflects its investment in capital assets (e.g. land, buildings, infrastructure, machinery and equipment), less any related debt used to acquire those assets still outstanding,” the report states.

At the end of the 2013 fiscal year, the Utility Commission’s total debt was $6,723,608 which consists of $2,145,000 in outstanding revenue bonds and notes payable totaling $4,578,608.

The commission’s largest capital asset is the water system, which carries a value of $15,246,243, according to the audit report.

The water system also carries the largest liability to the commission, as it is collateral for the remaining $2,041,279 on a loan from the Kentucky Infrastructure Authority due to mature in December 2022.

While the Utility Commission’s net position showed an increase, the company’s non-operating revenues dropped by almost 70 percent.

Those revenues were down by $149,013 from the previous year. The drop-off is attributed to a decrease in grant funding.

For questions about the audit report or the Utility Commission’s finances, contact the central office at (606) 474-7569.

Joe Lewis can be reached at jlewis@journal-times.com or by telephone at 286-4201.

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