The News Courier in Athens, Alabama

Local News

January 23, 2014

Water and Sewer Authority board approves ‘clean’ audit

— The Limestone County Water and Sewer Authority board of directors unanimously approved on Thursday the utility’s audit for fiscal 2013.

Accountant Cecil Armstrong of CDPA Inc. in Athens presented the audit, which LCWSA General Manager Byron Cook described as “clean” and clear of any negative findings.

For the fiscal year ending Sept. 30, 2013, the audit showed the Authority with a $385,081 decrease in revenue from water sales but also a $367,987 decrease in operating expenses.

Armstrong reported that for the first quarter of the current fiscal year, the utility has $140,000 more in revenue when compared to the first quarter of fiscal 2013.

He also said LCWSA has an A-plus credit rating from Standard & Poor.

“I know it’s kind of a perplexing year, but it wasn’t a bad year,” Armstrong said. “And (the Authority is) off to a good start this year.

“It was a good audit and management did a good job considering (a decrease in revenue).”

He said three factors should be considered when reviewing the Authority’s finances in fiscal 2013, including the interest rate on non-operating expenses rising to 2.8 percent from about 2.1 the previous year, the refinancing of two bonds and having to count sewage plants on county school property as expenses, rather than assets.

Within the audit, CDPA completed two tests to determine if the utility was generating enough money to pay its debt service and passed both, according to Armstrong.

The Authority, which refinanced two bonds last year to take advantage of lower interest rates, currently has $69.9 million in debt service.

Cook said the utility is not in a position to go into further debt at this time, but added there are no immediate plans to take on any more bonds to finance projects.

During the meeting, first-year board member Ty Smith asked if the audit would have contained negative findings if operating expenses had not been slashed. Cook confirmed this and said it would have caused “negative numbers,” or more expenses than revenues.

1
Text Only
Local News
Photos


Poll

Do you believe America will ever make another manned flight to the moon or another planet?

Yes
No
     View Results
Facebook
AP Video
Ariz. Inmate Dies 2 Hours After Execution Began Crash Kills Teen Pilot Seeking World Record LeBron James Sends Apology Treat to Neighbors Raw: Funeral for Man Who Died in NYPD Custody Migrants Back in Honduras After US Deports Israeli American Reservist Torn Over Return Raw: ISS Cargo Ship Launches in Kazakhstan Six Indicted in StubHub Hacking Scheme Former NTSB Official: FAA Ban 'prudent' EPA Gets Hip With Kardashian Tweet Bodies of MH17 Victims Arrive in the Netherlands Biden Decries Voting Restrictions in NAACP Talk Broncos Owner Steps Down Due to Alzheimer's US, UN Push Shuttle Diplomacy in Mideast Trump: DC Hotel Will Be Among World's Best Plane Crashes in Taiwan, Dozens Feared Dead Republicans Hold a Hearing on IRS Lost Emails Raw: Mourners Gather As MH17 Bodies Transported Robot Parking Valet Creates Stress-free Travel Raw: Fight Breaks Out in Ukraine Parliament
Twitter Updates
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Stocks
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Business Marquee