Bill Barrett of Mineola-based gave a brief overview of the New Hyde Park Village’s annual audit for the fiscal year ending May 31, 2012 during the village board’s regular meeting Tuesday night at the village hall.
Barrett noted that New Hyde Park’s fund balance went up $350,000 for the year, consisting of budgeted revenues, exceeded budget revenues by $66,000, or 1.2 percent, and the village spent $284,000 less than anticipated.
“It shows that you are accurately budgeting your revenues,” Barrett said, “not overstating your revenues, your budgeted revenues.”
The village spent 95 cents for every dollar it planned, with the remaining 5 cents going to the fund balance, increasing it by $350,000.
The governmental finance office association has made a general comment according to Barrett that municipalities should have two months worth of fund balance and “your’e practically there,” he said, “and significantly better than you had the year before.”
The village’s net assets totaled $3.1 million more assets than liabilities.
However, they also an expenditure of $460,000 – $470,000 in terms of healthcare, retirement contributions and other liabilities that increases by that amount per year and that is required to be accounted for according to government accounting standards and was recorded with a liability of $1,441,000 for post-employment benefits.
“They’ve been doing this for about three years now,” Barrett said. “No government in New York State can pay this liability, it’s a liability that is charged to your net assets and as a result, your un restricted net assets are actually a negative amount of about $883,000.”
The rest of the village’s net assets, about $4 million, are investments in capital assets.
Barrett said that the village was “basically flat” for the year, with net assets decreasing by $18,000. New Hyde Park keeps its books on three governmental funds: general, capital projects and special grants like community development block grants. The general fund has an unassigned fund balance of $783,000, or about seven weeks of doing business according to Barrett, “which is excellent. It’s up from four weeks from a year ago.”
The village’s income statement showed “minimal activity” such as capital projects and engineering relating to the road improvement projects and Operation: Downtown on Jericho Turnpike.
The general fund revenues for the year are $5.742 million, up from $5.533 million, while expenditures are $5.379 million, down from $5.628 million, equating to roughly a $250,000 decrease.
The totals for long-term debt, including serial bonds, judgements, compensated absences and retirement liability went down by $500,000 from $3.078 million to $2.577 million. The village retired a bond on Aug. 1, 2012 with $100,000 remaining in payments. The existing bonds that remain will all will be paid by May 31, 2022 and there are no balloon payments Barrett noted.
Health and retirement contributions continue to rise as state employee retirement system required contributions for village employees have almost doubled from two years ago from $145,000 to $274,000 now.
Barrett’s independent audit also made five recommendations of changes, though none were specifically named at the meeting. He did note that the financial statements do have estimates in them on depreciation and post-employment benefits.
“Other than trivial adjustments, all adjustments have been made to the financial statements,” Barrett said.