PRINCESS ANNE — As Somerset County nears the end of its current fiscal year the financial performance from FY23 was recently released showing more than $1.355 million was added to the general fund balance, posted at nearly $24.651 million as of June 30.
Of that amount about $14.245 million is unassigned with the balance committed to capital projects, debt service, post-employment benefits or future budget purposes.
CPA Audrey McKenrick, a partner with UHY LLP, who worked through the numbers, said while total expenditures were higher, property and income taxes plus property recordation fees combined were more than $2.26 million over what was budgeted.
Also with the receipt of grants not immediately spent budgeted interest income of $25,000 was actually more than $675,000.
The budget was adopted with $3.77 million in fund balance required for it to be balanced but it was not needed.
Ms. McKenrick said the county’s governmental and major funds received an unmodified opinion, “the best that we give,” but because the Liquor Control Board was not audited after it ceased operating Jan. 1, 2023 a “qualified opinion” was given for this component unit.
Liquor sales represented 2% of the county’s total revenue but there was nothing in the numbers “that caused us concern,” Ms. McKenrick said, and will not be an issue in future audits.
Ms. McKenrick also said there were no internal control irregularities to report, and expenditures of federal grants to include coronavirus relief funds were disbursed following governmental guidelines.
She said, however, that recommendations were made on streamlining the process to follow the county’s internal control process, for example, having the finance department oversee grant payments approved by the planning and zoning office.
“Definitely a clean report card,” said Herb Geary, CPA, a managing director with UHY Advisors. And county staff members were accommodating to work with, he said, despite turnover in the office to include the unexplained exit last summer of former finance director, Gene Adkins.
“It was a challenging year and everybody stepped up,” Ms. McKenrick said. “It was very difficult on (the county’s) side.”
Mr. Geary said the county’s fund balance should be about a third of the budget, and with more than $24 million available “it’s a cut above” when compared against the current operating and roads budgets combined of more than $63.4 million.
The County Commissioners have been discussing and will soon release the FY25 budget during a public hearing yet to be advertised.
Great Hope Golf Course has more revenue but loses more
Each year there is interest in the county’s only enterprise fund, Great Hope Golf Course, which this past year the charges for services totaling $755,000 didn’t cover all of the operating expenses, posting a net operating loss of $503,372 in fiscal year 2023 compared to $484,291 in FY22.
Revenue covered salaries, repairs, maintenance, supplies and nearly all of the utility bills combined for the year, according to the statement of change in net position, with $72,400 in insurance and $156,000 in “other operating” expenses outstanding. Depreciation, a non-cash expense, was $128,300.
To cover costs $441,000 was transferred from the county’s general fund which was nearly $120,000 more than the year before. That total, however, was $174,000 less than what was projected in the budget.
Revenue was 11.4% higher than FY22 and management attributes it to moderate weather especially in the fall and winter. To help reduce expenses changes were made to the food and beverage amenities at the Caddy Shack, and they proved to be beneficial to the bottom line.
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