MEXICO – The numbers may not be great, but they aren’t as bad as originally thought when a preliminary audit was reviewed four months ago.
The town’s final draft audit, conducted by Fairfield auditor Keel Hood, arrived at the town office Wednesday afternoon. It shows a $35,219 general fund balance as of the audit’s closing date of June 30, 2004, and an undesignated unreserved surplus of minus $14,026. This negative number is an improvement over the previous fiscal year’s undesignated unreserved surplus of minus $170,109.
“The town’s not bankrupt; everything has been done properly,” said Town Manager John Madigan.
That’s not to say that better budgeting shouldn’t be done.
Madigan, who took over the leadership reins about three weeks ago, said the town has no surplus to cover unexpected expenses. Part of his mission will be to rebuild a surplus over a couple of years. Towns of Mexico’s size should have a surplus of about 10 percent of their municipal budgets, which would be about $300,000, he said.
A preliminary draft of the fiscal year 2003-04 audit in October showed that the town owed itself about $300,000. But that, said Madigan, was most likely not the case.
“Adjustments weren’t made, money not yet moved in,” he said. “It was a work in progress.”
He said all the funds designated for reserved accounts, about $168,000, were returned to their specified accounts by the end of the audit year.
“They were never spent, but used for cash flow,” he said.
Overages were also reported in several accounts, including general assistance, recreation and the Wellness Center account.
Although the town has made strides in improving its general fund balances, from a minus $78,734 for fiscal year ending 2003, to a plus $35,219 for fiscal year 2004, Madigan said a more realistic budget must be developed for the upcoming year.
“A proper budget means there will be no negatives at the end of the year,” he said.
He said several accounts in the past had been under-budgeted.
That will change as the 2005-06 municipal budget is developed, he said.
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