The city Tuesday was presented an unmodified, also known as clean, audit report.

Tarboro CPA Gregory T. Redman told the city council that no material weaknesses were identified, no significant deficiencies were identified, and there were no findings disclosed that are required to be reported.

The audit provides a snapshot of the city’s finances as of June 30. 

Cash in the bank for the city at that time was $12,375,000. “That was unrestricted,” he said, while the restricted cash was $249,000.

The unrestricted, unassigned fund balance is $11.8 million. “That’s 67 percent of your annual expenditures. The state requires a minimum of 25 percent.”

Redman told the council that there are cities of similar size to Roanoke Rapids that have an average of 46 percent. 

In 2021 that percentage was at 26. “So you were just above the minimum just over three years ago.”

In the subsequent years that percentage increased to 39, then 50 and now 67. “It’s a good thing. It’s a good financial position.”

Total revenue for the year was $21 million, compared to $18.7 million last year. “Your expenditures are $18.2 million, which are the exact amount of expenditures you had in the prior year.”

That means, Redman said, “Your net income will increase $2.8 million, which does include the $2 million sale of the theater at the end of the year.”

There were no negative numbers between the original, final, and actual budget, he said. “If there were negative numbers you would have over-spent your budget and that’s in violation of state statutes.”

That there were no negative numbers, he said, “means the finance office is keeping up with what's being spent and the board is approving budget amendments. That’s a good thing. I don’t always see that.”

In discussing the next 25 or 30 pages of the audit, Redman said, “The good thing is there’s not a lot to talk about. That’s just standard notes.”

In discussing long-term debt, he told the council that’s a category that not only includes the city’s debt, but its net pension liability and health insurance for retiree liabilities.

The city started the year with direct borrowing at $1 million and ended the year with $742,000.

As far as the special revenue bonds, also informally called the theater debt, at the start of the year it was at $7.6 million and at the end of the year was $6.8 million. 

The city’s total property tax collections were $8.7 million and the collection rate is 99.21 percent, Redman said. “That’s a very good percentage. We do 22 town, city audits and I see a lot of 92s, 93s. I know the county helps you collect, but what that is talking about is that your citizens are paying the property taxes which helps your general fund.”

City Manager Kelly Traynham said following the meeting, “Our staff have been working very hard to account for every penny that it has spent and to make sure it is spent efficiently.”

Finance Director Carmen Johnson has worked hard with department heads and their staff to keep accurate records, the city manager said.

The news of the fund balance was very positive, Traynham said. “That’s why a lot of times we say before we make any decisions in haste, maybe we become more thoughtful in that decision-making process and how we spend our money. I’m really proud of the work that our staff does. I think part of that is reflective of the teamwork that we all do because our departments don’t work in silence.”