By Jessie Burchette
jburchette@salisburypost.comRowan County had a very good year ó that is, the 2008 fiscal year that ended June 30.
While commissioners built the 2007-08 budget by using $11 million in savings or fund balance, the county’s savings didn’t shrink.
In fact, the county’s fund balance grew by $1.2 million.
“All things considered, it was a good year for the county,” Sam Leder, a partner in Potter & Co. P.A., told commissioners this week. The Concord office of Potter & Co. has audited the county books for more than a decade.
Leder presented the audit report to commissioners Monday.
Referring to the growth in the fund balance, Leder offered another assessment, “More cash is better than less cash.”
The county received the top rating ó called an unqualified audit opinion ó for its finances during the fiscal year.
Leder pointed to the dramatic increase in revenue ó a 15 percent increase due to revaluation and the higher tax values.
Although revenue increased markedly, County Manager Gary Page credited much of the savings to county employees and department heads.
Page said Friday that county departments left $8 million unspent and the county took in more than $3 million in extra revenue.
The county’s fund balances totaled $49.2 million on June 30, an increase of $5.2 million from the prior year. Much of that is restricted or committed for projects.
At the end of fiscal 2008, the county’s unreserved fund balance for the general fund was $31.2 million, or 24 percent of the total general fund expenditures.
Commissioners have already designated $11.2 million of that fund balance for the current budget and special purposes.
The financial report noted the county has maintained its Aa3 rating from Moody’s Investors Service and A+ bond rating from Standard and Poor’s for the sixth consecutive year, as well as its AA- rating from Fitch Ratings for the fourth consecutive year.
Responding to questions from Vice Chairman Jon Barber, Leder said Rowan leaders have been very prudent in not taking on huge debt loads. Leder said Rowan’s debt load isn’t close to that of some other counties in the area that owe $300 million plus.
Commissioner Chad Mitchell praised Finance Director Leslie Heidrick and her staff for doing an excellent job in preparing the comprehensive financial report, which includes the audit and more than 100 pages of additional financial and statistical information.
Among minor issues cited in the audit were four instances of non-compliance for Low Income Energy Assistance through the Department of Social Services.
Leder said 40 or more applications are drawn randomly and reviewed. In the four cases, the applications had the wrong fuel type, which caused the payments to be either underpaid or overpaid by a few dollars.
Leder also recommended the county adopt an approved investment policy and possibly appoint a committee to review investments. He noted that in these difficult financial times, commissioners and management need to closely monitor the performance and stability of finances.
As of June 30, cash and investments totaled $54 million. The investments included commercial and government paper and trust.
Contact Jessie Burchette by phone at 704-797-4254.