EDC meeting discusses balance sheet changes

 By LYNETTE SOWELL

The Copperas Cove Economic Development Corporation board held its monthly meeting last Thursday at noon. For financials, the board heard information regarding the balance sheet for the month of July, as well as received the financial report for the month of August, along with the comparative sales tax report for August 2015. The EDC’s auditor, Todd Pruitt with Patillo, Brown and Hill, LLP, was present to explain the reporting method the office uses. Office administrator Cindi Novak explained why this sheet was brought back to the board. “This balance sheet was pulled from last month’s agenda and it was because there were some various questions regarding adjustments that were made that were reflected on the balance sheet,” Novak said. “Due to the desire for clarification and for these adjustments, we decided to reverse everything and answer any questions you might have, in response to why the original adjustments were made, and where we would like to help provide clarification on some of these adjustments.” Pruitt told the EDC board that local governments are required to issue audited financial statements, and the EDC has two types of audited financial statements. “One is called a modified accrual basis of accounting. You have a separate set of financial statements called the full accrual basis of accounting. I met with Cindi this summer and looking at the trial audit, it really had elements of both,” Pruitt said. “So looking at it, hoping to simplify things, we were trying to decide—let’s pick one basis of accounting to keep your books on a dayto-day basis. You can always adjust to the other at audit time. She asked what I recommended, and I recommended the modified accrual basis of accounting because it’s what most local governments use and it’s a lot simpler.” He added that he believed after that change was made, it surprised some who looked at the financial information for July, because it is a lot different than full accrual financial statements. “Speaking with Dan and Cindy, I think everybody here is a little more comfortable with full accrual. So the financial statements we have now are full accrual financial statements, and then at audit time every year, we can adjust to modified accrual.” The board also received the year-to-date profit and loss statements for budget versus actual, along with the balance sheet, investments and the sales tax report. As of August 31, 2015, the EDC had received $1,370,160.20 in sales tax revenues for the year, outpacing last year’s amount during the same time period by 4.79 percent for 2015. Also at last week’s meeting, one agenda item included the issue of the EDC building’s multimedia room air conditioning system needing replacement. As part of the 2013 renovation of the EDC building to set create a room for city council meetings, the multimedia room was put in place to house the video recording equipment for meetings. In the EDC’s facility sharing agreement with the city, the EDC is responsible for maintenance and repair of the equipment. Monica Hull, director of business development for the EDC, told the board that the air conditioning system for that room is no longer functioning and is no longer under warranty. The EDC staff then obtained a pair of bids for the system, which currently is a specialized system. “It is so special it is impossible to find,” Hull said. Services to install a split system unit in the amount of $8,000, which would come with a seven-year warranty. However, another HVAC company, Aken’s Affordable Air, suggested installing a regular air conditioning system for that room. The quoted cost for a two-ton unit was $2,850, significantly less than a specialized similar to the one presently installed. The board approved the EDC’s staff going forward with getting more bids for a system for the media room, not to exceed $2,850. Up next on the agenda was the issue of the EDC’s pest control service provider. Hull told the board the staff wasn’t pleased with the service from the current vendor, so staff obtained three bids from local pest control service companies, including Mantis Pest Control, American Eagle Pest Control and Killeen Pest Control. The board approved EDC staff to enter into a contract with Killeen Pest Control for pest control services at a cost of $1,274 annually. That amount includes a $170 initial service fee and will run $92 per month. The board also held an executive session to discuss ongoing prospects, to include projects dubbed Project Big Rig, Project Metal, Project Made Fresh, and Project Wood. The EDC board holds its monthly meeting typically the third Thursday every month.