Johnsonville gets audit report
JOHNSONVILLE, S.C. – A presentation of the city of Johnsonville’s 2017-2018 audit showed that many of the findings from last year are now gone.
One finding mentioned to the council at a meeting Tuesday by accountant Monica Richardson involved segregation of duties. The city has not been able to adequately segregate duties, but Richardson said it will never have a segregation of duties simply because there are not enough employees.
In her presentation, Richardson told the council that it needs to pay special attention to the general fund because of cash totals being negative.
The city needs to have 60 to 90 days of operating revenues in unrestricted net position, according to Richardson. An audit data sheet shows that as of June 30, the city had negative 24 days of operating revenues in unrestricted net position.
“The unrestricted net position in the governmental funds is a negative $746,998,” Richardson said. “If I add back the effect of the South Carolina retirement, pension, liability adjustment I had to make, that brings it just to $777,610 which means you have a negative 24 days. Last year it was four days, now it’s a negative 24 days.”
Richardson said the city should also have enough unrestricted cash on hand to operate at a minimum of 60 days. The city did not meet this number as of June 30 for its governmental funds and had a negative 35 days in unrestricted cash on hand.
Business-type activities finished with positive totals for both unrestricted net position and unrestricted cash on hand.
Johnsonville’s assets totaled $21,361,831 as of June 30, 2018, according to the audit. Revenues totaled $1,751,834 and expenditures totaled $1,561,670.
Richardson said the city’s water and sewer funds were both healthy.