City of Maysville Audit Report for Fiscal Year 2021

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INDEPENDENT AUDITORS’ REPORT

The Honorable Debra Cotterill, Mayor
City Commission
City of Maysville, Kentucky

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Maysville, Kentucky (the City”), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Maysville, Kentucky, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards (Government Auditing Standards), issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Maysville, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Maysville’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we

  • exercise professional judgment and maintain professional skepticism throughout the audit.
  • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
  • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Maysville’s internal control. Accordingly, no such opinion is expressed.
  • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
  • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Maysville’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4-10, budgetary comparison information, pension and OPEB schedules on pages 52-57 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Maysville, Kentucky’s basic financial statements. The combining and individual fund financial schedules and budgetary comparison information on pages 58-66 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards on page 67 is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is not a required part of the basic financial statements. The combining and individual fund financial schedules, and the schedule of expenditures of federal awards are the responsibility of management, were derived from, and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United

States of America. In our opinion, the other supplementary information and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 14, 2021 on our consideration of the City of Maysville, Kentucky’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Maysville, Kentucky’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Maysville, Kentucky’s internal control over financial reporting and compliance.

Baldwin CPA’s, PLLC
Richmond, Kentucky
December 14, 2021

View full audit here.

City of Maysville, Kentucky
General Fund
Statement of Revenues, Expenditures and
Changes in Fund Balance-Budget and Actual
for the year ended June 30, 2021

 

Original
Budget

Amended
Budget

Actual

Variance
Favorable
(Unfavorable)

Revenues

 

 

 

Taxes

$           1,308,825

$        1,308,825

$         1,370,036

$                61,211

Licenses and permits

8,432,500

8,432,500

9,504,746

1,072,246

Charges for services

1,630,000

1,630,000

1,749,405

119,405

Intergovernmental revenue

1,536,940

1,536,940

1,455,278

(81,662)

Other

420,602

420,602

628,195

207,593

Total revenues

13,328,867

13,328,867

14,707,660

1,378,793

Expenditures

 

 

 

General government

3,498,985

3,498,985

3,203,888

295,097

Police

2,746,000

2,746,000

2,574,923

171,077

Fire & Ambulance

2,796,200

2,796,200

2,609,409

186,791

Public works

2,959,700

2,959,700

2,702,400

257,300

Parks and recreation

135,000

135,000

66,151

68,849

Debt Service

150,100

150,100

150,013

87

Capital

1,249,000

1,249,000

1,012,175

236,825

Total expenditures

13,534,985

13,534,985

12,318,959

1,216,026

Excess (deficiency) of revenues over

expenditures

 

 

 

(206,118)

(206,118)

2,388,701

2,594,819

Other financing sources (uses):

 

 

 

Gain from sale of assets

36,925

36,925

Proceeds from insurance settlement

74,745

74,745

Transfers (to) from other funds, net

(424,150)

(424,150)

(267,427)

156,723

Total other financing sources (uses)

(424,150)

(424,150)

(155,757)

268,393

Excess (deficiency) of revenues over  expenditures and transfers

$             (630,268)

$        (630,268)

2,232,944

$            2,863.212

Fund balance, beginning of year

 

 

13,488,102

 

Fund balance, end of year

 

 

$          5,721,046

 

See accompanying notes to financial statements.

City of Maysville, Kentucky
Special Revenue Funds
Schedule of Revenues, Expenditures and
Changes in Fund Balance – Budget and Actual
For the Year Ended June 30, 2021

 

Original
Budget

Amended
Budget

Actual

Variance
Favorable
(Unfavorable)

Revenues:

 

 

 

 

Intergovernmental revenue

$        580,638

$           580,638

$           506,451

$          (74,187)

Charges for services

76,800

76,800

85,079

8,279

Taxes

100,000

100,000

146,647

46,647

Other

14,500

14,500

13,180

(1,320)

Total revenues

771,938

771,938

751,357

(20,581)

Expenditures:

 

 

 

 

Parks and Recreation

316,300

316,300

297,505

18,795

General Government

120,000

120,000

106,340

13,660

Tourism commission

253,000

253,000

187,852

65,148

Debt Service

72,000

72,000

71,338

662

Capital Outlay

314,231

314,231

228,469

85,762

Total expenditures

1,075,531

1,075,531

891,504

184,027

Excess (deficiency) of revenues over expenditures

(303,593)

 (303,593)

(140,147)

163,446

Proceeds from debt financing

Transfers (to) from other funds

246.550

246,550

202,937

(43,613)

Excess (deficiency) of revenues over expenditures and transfers

(57,043)

(57,043)

62,790

119,833

Fund balance, beginning of year

235,323

235,323

235,323

 

Fund balance, end of year

$        178,280

$           178,280

$           298,113

 

 

 

City of Maysville, Kentucky
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2021

 

Maysville Utility

Operating Revenues

Water sales

Water surcharge

Sewer charges

Other operating revenues

 

 

$      1,837,849

132,168

2,279,251

208,767

 

Total Operating Revenues

4,458,035

Operating expenses

Water operations

Sewer operations

 

2,196,780

1,498,479

Total Operating Expenses

 

3,695,259

Operating income before depreciation

762,776

Depreciation expense

Water system

Sewer system

 

506,468

713,375

Total Depreciation Expense

1,219,843

Operating income (loss)

(457,067)

Nonoperating Revenues (Expenses)

Interest revenue

Interest expense

3,003

(219,247)

Total Nonoperating Revenues (Expenses)

(216,244)

Change in Net Position

(673,311)

Net Position, June 30, 2020

18,104,330

Net Position, June 30, 2021

$     17,431.019

 

A copy of the complete audit report, including financial statement and supplemental information, is on file at 216 Bridge Street and is available for public inspection during normal business hours (8:00 a.m. To 4:30 p.m,). The audit report is also available on the City website at cityofmaysville.com. Any citizen may obtain from city hall a copy of the complete audit report, including financial statements and supplemental information, for his personal use. Citizens requesting a personal copy of the city audit report will be charged for duplication costs at a rate that shall not exceed twenty-five cents ($.25) per page. Copies of the financial statement prepared in accordance with KRS 424.220, when a financial statement is required by KRS 424.220, are available to the public at no cost at the business address of the officer responsible for preparation of the statement.