Audit: Pikeville sees its net financial position increase in 2020-21 | News
The city of Pikeville reduced its debt and increased its net position, but saw its revenue decline in fiscal year 2020-21, according to the city’s financial audit report.
The Pikeville Town Commission approved the audit at the commission’s meeting on December 13. The audit – which was conducted by Kelley Galloway Smith Goolsby, PSC – provided an overview of the city’s financial statements and operations for the past fiscal year, ending June 30. , 2021. Chief Audit Executive Lori Dearfield introduced it to the Board of Directors.
According to the audit, the town of Pikeville increased its net position by 4.7%, or nearly $ 5.45 million, from nearly $ 117.31 million in fiscal year 2019-2020 to nearly $ 122.52 million in fiscal year 2020-21. There was an increase in government activities (7.5%) and a decrease in commercial-type activities (1.1%), which respectively represent an increase of approximately $ 5.88 million and a decrease of approximately $ 435,000.
“Over time, increases or decreases in the city’s net position indicate whether its health or financial condition is improving or deteriorating,” according to the audit. “However, when assessing the city’s overall position, there are other non-financial factors, such as changes in economic conditions, population growth, changes in rates or valuation of the property tax, condition of infrastructure assets and new or amended government legislation, which can have a significant impact on the city’s position and should be taken into consideration.
The city experienced a decline in revenue between fiscal year 2019-2020 and fiscal year 2020-21. Combined revenue, including government and business-type activities, fell 20.3%, or about $ 9.19 million, while combined spending fell 13.7%, or nearly 4 , 83 million dollars.
Government activities included an increase of approximately $ 727,000 in taxes and license fees. However, according to the audit, there has been a significant decrease in capital and operating grants from about $ 12 million to about $ 7.7 million in the current year, resulting in a overall decrease in total government revenues.
The Town of Pikeville has also reduced its total year-end debt – including obligations payable and lease obligations – from approximately $ 27.699 million as of June 30, 2020 to approximately $ 26.83 million as of June 30, 2021. , which represents a reduction of over $ 868,000. In addition, however, liabilities for unpaid compensated absences of approximately $ 245,000 are unpaid as of June 30, 2021, compared to approximately $ 238,000 unpaid as of June 30, 2020.