pages: GolfCommission/2011-02-23.pdf, 11
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GolfCommission | 2011-02-23 | 11 | numbers still show a decline over last period. City financial reports show good numbers but because of the way the City makes its cash and accrual accounting, in a way that I don't understand, I didn't pay much attention to that. Looking at the year to date numbers, operating income is at $264,000, cash flow from operations at $390,000, transfer to City $447,000, and the draw from the Enterprise Fund, the cash balance is shown at $674,000, and this time, for the first time, there's another line item called available cash balance which is $524,000. When Jane inquired about this, Ms. Goldman explained that the available cash balance deducted from the cash balance funds that have been committed for payments to vendors and future redemption of previously issued gift certificates. While I'm sure that's right, it's a little unusual that this is a balance sheet item. But, one issue that I did want to talk about, and Joe is focused on this, is the budgetary comparisons, and especially the infamous services category. As I have previously discussed at these meetings, the City divides expenses into five categories, one of which is called services, and for months, if not years, I have been trying to find out exactly what expenses are in that category. When Ms. Gallant was here, six months or so ago, she said that was the payment to Kemper. If that's right, we have an issue, because if you look at the seven month financials, comparing actual to budget, you see that the services category exceeds budget by $220,000, 14% over seven months. How come, if Ms. Gallant could be believed, that would suggest Kemper is over-running the budgeted expenses by $220,000. And if that's so, I think we are entitled to ask Kemper, how come you're spending more money than you said you were going to spend? But, I'm not sure that is so. I'm not sure I can credit what Ms. Gallant said, because if you look, for example, at Kemper reports that you're now getting every month, and they do it on a calendar year, not a fiscal year basis, they say that their operating expenses were lower than their budget for the last calendar year. It shows they're doing better than budget. So, how come the services number is $220,000 higher than budget? If it's not Kemper spending more money, who else could be spending that money? It would have to be the City. And, what's the City spending that money on, and for what? I would recommend that you seek an explanation from both Kemper and the Recreation and Park Director as to why that line item is $220,000 greater than the budget. If it's Kemper, have them tell us what other expenses they've incurred, if the City, have Mr. Lillard tell us what other expenses the City has incurred. If you look at the bottom line numbers, you talk about a net income through seven months of $264,000. If you're over budget by $220,000, and you add that back in, your net income is almost double what it is. I think this demands an explanation. Now, fortunately, I'm informed that Mr. VanWinkle has noted the same discrepancy, and has asked for and been granted a meeting with Ms. Goldman and her Chief Accountant to go over these issues. Maybe it will all be resolved there, hopefully it will be. In any event it should be, because in order for the Golf Commission to continue to exist, it's still responsible for oversight of these matters. If you're over running your budget by this amount, and decreasing your income by half as a result of this over run, I think it would be the Golf Commission's job to find out why to suggest things that could be done to correct the situation. " 11 Golf Commission Minutes - Wednesday, February 23, 2011 | GolfCommission/2011-02-23.pdf |