Grayson City Council has received the final draft of its 2012-2013 fiscal year audit by the Ashland-based public accounting firm of Kelley, Galloway and Company, PSC.

Local governments are required to have their finances audited by an independent third party on an annual basis. Those findings are then forwarded to the state auditor's office in Frankfort.

According to the recently-released report, the audit of Grayson's financial statements uncovered no major issues.

“During our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses,” the report says.

The city's assets exceeded its liabilities by $19,077,855 which represents an increase in net position of $136,499 from the previous fiscal year.

At the end of the fiscal year, the city had total outstanding debt of $8,841,628 which is a $191,300 decrease from last year.

The only new debt issued by the city this year was a $325,000 loan for a new pumper truck for the fire department.

Revenues for the general fund were $15,781 less than original projected due to a decrease in insurance premium taxes collected.

That shortfall was more than offset, however, by the fact that general fund expenditures were $80,819 less than budgeted.

These figures represent a net surplus of $65,038 in the city's general fund.

According to the audit report, two major employers in the city comprise a sizable portion of the city's payroll tax proceeds.

Smithfield and the Carter County Board of Education paid a combined $306,175 in payroll taxes last year, which accounts for 35 percent of the total payroll tax collected in the city.

That figure also represents 15.3 percent of all general fund revenues.

For more information about the audit report or the city's finances, contact Grayson City Hall at (606) 474-6651.

Joe Lewis can be reached at or by telephone at 286-4201.

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