Walhalla’s finances tracked in 50-plus page audit

Walhalla’s outside auditor presented the city an unqualified opinion for its finances during 2019-20 which means Payne, White and Schmutz CPA firm declares the client fairly presented the financial position in conformity to generally accepted accounting principles.  Among the financial highlights for the year that ended June 30:  Walhalla’s total net position rose by $244,534 compared with prior year position.  City revenues of $9.1 million exceeded expenses of $8.8 million.  However, there’s room for improvement as outlined by CPA Jason White in his comments at last night’s council meeting, as well as details in the management analysis section of the report.  White believes the city’s treasury should hold in reserve an amount equivalent to two months of operation costs.  Under “weaknesses in internal control and financial closeout” the CPA firm noted that bank reconciliations were not prepared for the city’s accounts until months after year end and “it appears management did not provide regular, detailed financial reports to the City Council.”  City officials, however, accept the findings and are said to be implementing the auditor’s recommendations.  They include formalizing job descriptions to clearly define roles and responsibilities for finance personnel.  The clerk or administrator is to review the general ledger for all funds at least monthly and prepare reconciliations to ensure transactions and balances are correctly recorded. And the council is to receive monthly financial information.