City receives clean annual audit

By LYNETTE SOWELL
Cove Leader-Press 

During a special meeting of the Copperas Cove city council on Wednesday afternoon, the council voted to accept the city’s financial audit for the fiscal year of 2016-2017, that concluded on Sept. 30, 2017. 
At the council’s most recent regular meeting on March 20, the city’s financial director, Velia Key, presented the report of the audit.  
Adam McCane with the independent auditing firm of Weaver and Tidwell, LLP was also present for the March 20 meeting, when he told the council that the firm conducted its audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in government auditing standards, issued by the Comptroller General of the United States.  
He said among the areas especially scrutinized were capital expenditures, capital projects, as well as the “spending of the public’s money,” which are considered to be “very high-risk areas.”
Tests were performed for compliance with federal programs and the city’s financial statements were also tested. 
The firm issued an unmodified opinion, or a “clean” opinion, which meant there were no unusual or unexpected transactions. 
The council did not take action at the March 20 meeting due to the fact that the auditing committee pointed out the word “draft” on the document, so it was brought back the council last Wednesday for final approval of the final, signed document. 
This time, Victor Perello, the senior manager of engagement at Weaver and Tidwell, was present on Wednesday to tell the council the opinion is the same and the numbers have not changed, with the city receiving the highest opinion a firm can render. 
Financially, the total net position of the city increased to $51.8 million from the prior year’s $48.1 million, and as of Sept. 30, 2017, the city’s governmental funds reported combined ending fund balances of $17.4 million, an increase of $4.8 million in comparison with prior year.
For revenues, ad valorem taxes increased by $0.1 million, which is an increase of 1.5% compared to the previous year. Sales tax revenue for the 2016-2017 fiscal year increased to $3.2 million, which is an increase of 10.8% compared to the previous year.
Business-type activities increased the city’s net position by $1.8 million. Charges for services provided the largest share of those revenues at 99%.
Water and sewer fees were the major revenue source for “business-type” activities of the City, which recorded $11.2 million in revenue. Compared to the prior year, water and sewer revenues increased by $0.5 million or 4.4%. Solid Waste revenues increased $184,000 or 4.5% from the previous year, and the Golf Course Fund revenues increased from $285,000 in 2016 to $295,000 in 2017, an increase of $10,000, or 3.5%.
As far as the city’s long-range debt is concerned, the city’s total debt increased by $3.8 million at a total of $74,130,000 in debt, with the issuance of general obligation refunding bonds in the amount of $9.6 million. 
The city’s total long-range debt figure is made up of several types of bonds and notes, to include $33,130,000 in general obligation bonds, tax/revenue certificates of obligation bonds of $37,745,000, with the remaining being $1,255,000 in tax notes.