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City of Baker Receives Clean Audit Report for Fiscal Year 2022
The City of Baker received an unmodified opinion for Fiscal Year 2022, which is the highest level of affirmation that the processes and procedures that the city used to prepare the financial information and financial statements for the last fiscal year were conducted accurately and in accordance with all applicable accounting rules, regulations and as well as in accordance with all applicable laws. In other words, the opinion given confirms that the financial statements were presented fairly and completely.
This is the fifth consecutive year in which the city has received unmodified opinions related to the annual financial audit.
This is important because it serves as a reflection of the integrity of controls in place managing the city’s spending and safeguarding its assets, which is overseen by the finance department, which requires and receives the full cooperation of all departments. The audit opinion is based on several variables, including how available the data was to them, whether they had an opportunity to follow all due procedures and the level of materiality.
Bruno and Tervalon, based in Jackson, MS, completed the city’s audit this year. Mr. Akanji, of Bruno & Tervalon, LLP, provided an overview of the results of the City of Baker’s Annual Financial Report for 2022 to the Baker City Council during its regularly scheduled meeting on March 28, 2022. This audit covered the last fiscal year from July 1, 2021, through June 30, 2022.
The audit found that the city spent the majority of its governmental funds, 44%, on public safety. This includes spending that goes toward running the city’s fire and police departments.
It also reflects a 3% increase in public works expenditures, up to 25% from 22% when compared to 2021. Public Works is responsible for repairing potholes in locally maintained roadways, repairing sidewalks, grass cutting year-round of roadway shoulders and medians, ditches, and city servitudes. They also ensure adequate drainage and a litter-free environment as they routinely inspect and clean drainage channels, flush culverts and under driveways to keep them free flowing to prevent the possibility of flooding and also are responsible for street sign maintenance, litter abatement, installation of new storm culverts and catch basins. This department also responds to all weather-related emergencies.
Additionally, there was a reduction in expenses for the general government, down 2% from 17% to 15%. General government costs are all expenditures for purchases of goods and services (including compensation of employees). Municipal employees and elected officials are responsible for promoting the general welfare and the safety, health, peace, good order, comfort, convenience, and morals of the city’s inhabitants. In this effort, the city provides a full range of services, including water, gas, and sewer distribution services, refuse collection; building inspections, licenses, and permits, construction and maintenance of streets and other infrastructure, economic development, full-service burials and community, and recreational and cultural activities. The City also is financially accountable for a legally separate court system and marshal, both of which are included in the financial audit report as blended component units. The remainder of the funds were expensed under economic/recreation at 4%, debt service - capital leases at 2%, and capital outlay at 10%.
The importance of annual audits is to demonstrate transparency in financial reporting, which is necessary for establishing and maintaining a good relationship between investors in the city and the public. Further, creditors and other financiers rely on financial statements to assess the creditworthiness of an organization, many of whom stipulate that the entity must receive an unqualified audit opinion to be in good standing with loan terms or covenants. Such audits allow the city to continue utilizing federal, state, and local grant funding for capital projects/expenses thereby stretching each dollar to its fullest for the benefit of the citizens.
Mayor Waites said when asked about the results, “I am pleased with the results of this audit, which demonstrates our commitment to balancing fiscal responsibility and improving the quality of life and place for our residents. I take this very seriously and know that it is important that Baker residents understand that we are good stewards of taxpayers dollars."
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