Water authority certified audit is in

McDonough, GA—Oct. 18—Keeping up with the finances of the water and sewerage utility in the fourth fastest growing county in the nation is no easy task. But the independent auditors fro Mauldin & Jenkins have reported that the books are in order at the Henry County Water & Sewerage Authority (HCWSA), for this fiscal year that ended June 30.

Reporting before the Authority's Board of Directors at its first October meeting, Miller Edwards, CPA with Mauldin & Jenkins, noted that the financial statements of the HCWSA are "overall, very good," reflecting a "strong balance sheet and healthy assets."

Mauldin & Jenkins completed the Authority's audit within weeks after the fiscal year ended, with no difficulties in the process, reported Edwards. The CPA firm is currently auditing the books for Henry County government as well, and the Authority's audit will be incorporated in the County's audit when those results are completed within the next few weeks, said Edwards.

This annual audit of the HCWSA has several components to it, as carried out by Mauldin & Jenkins. First, the auditor must determine that the accounting policies used by the Authority are deemed to be in accordance with generally accepted accounting principles. In addition, Maulding & Jenkins must obtain reasonable assurance about whether the financial statements are free from material misstatement. Finally, when estimates are necessary for reporting financial activity, the auditor must assure that such estimates are adequate in their desired function.

Edwards reported that through the auditing process, his firm also verifies that the Authority complies with the appropriate requirements outlined in grants and government stipulations.

"You have a clean opinion this year, with no findings or questions within this certified audit," added Edwards. "You've always had a clean opinion from us for the past six years, and I don't ever remember any reports that weren't clean, in all the years of your audits."

Perhaps the most telling reflection of the growth of the HCWSA is the increase in the utility's assets over the past seven years. In 1994, Edwards noted that the Authority had approximately $125 million in total assets, while that figure has risen to $305 million in assets today.

"We are certainly a utility that is growing and expanding, almost daily," said Lindy Farmer, general manager of the HCWSA. " A closer look at our figures, especially in revenues and cash flows, shows how we are challenged with keeping up with the future demands and needs for water and sewer services from our customers."

While highlighting some of the specifics of the audit results, Edwards pointed out that cash flow is one of the most important factors for a public utility to monitor when assessing its financial standing. While the Authority's current cash flow from operations was not as strong as the previous year, this result was due to the organization making significant progress in reducing the amount of its accounts payables.

Also within the numbers of this past fiscal year's financial statements are reflections of some very aggressive improvements to HCWSA operations. For example, the line item for inventories reflects a significant investment in state-of-the-art read meters for more efficient calculation of customer water usage. A decrease in the Authority's accrued expenses incorporates prepayments by the County for the purchase of the Authority's old administration building. And the fixed assets figure reveals the Authority's conversion to a new operations software package for billing and posting account information.

"We are very pleased with the results of the audit, because they reflect both the professionalism in our business practices, as well as the investments in our community's future," said HCWSA chief financial officer Roderick Burch, who assisted in the auditing process. "We take our fiscal responsibility very seriously, as the stewards of the public's local water and sewerage system."

Edwards concluded his audit report by conveying his appreciation to the board, the management and the staff of the Authority, for their complete cooperation during the tedious ordeal of auditing the organization's financial statements. There were no disagreements or difficulties with management, no need for outside consultation, and no issues that might prevent Mauldin & Jenkins from being engaged for next year's audit, said Edwards.

"We hope the results of this audit will also assure the public that the Henry County Water & Sewerage Authority is operating openly and honestly, and in the best interest of our customers, as we address the future water and sewer needs of the people of this county," concluded Farmer.