2022 Audit Presentation
Audits · 10 pages · 1,019 words · all documents · the town's PDF →
Town of Durham
FINANCIAL OVERVIEW
Presented By: Jennifer Conners RUNYON KERSTEEN OUELLETTE
INSIDE
2. Summary of Audit Results
3. General Fund Fund Balance
4. General Fund Revenues
5. General Fund Expenditures
6. General Fund Expenditures Pie Chart 2022
7. General Fund Expenditures Pie Chart 2021
8. General Fund Committed Fund Balances
9. General Fund Reserved Fund Balances
10. Operating Cash Analysis
About this presentation
This presentation is intended as a tool to assist the Town Board of Selectmen and management in understanding its financial operating results. The information contained in this publication should be read in conjunction with the audited financial statements and related disclosures and should not be used for any other purposes without the expressed consent of RUNYON KERSTEEN OUELLETTE.
Please contact us at 207-773-2986 or 1-800-486-1784 20 Long Creek Drive, South Portland, ME 04106
Town of Durham
SUMMARY OF AUDIT RESULTS
• Timing of Audit
– Audit performed the week of February 6, 2023
– Reports issued August 17, 2023
– Financial Statement Opinion – Unmodified
• Report Required by Government Auditing Standards (GAS)
– Finding related to budget over expenditure
– Material weakness related to cash account reconciliations
– Significant deficiency related to segregation of duties
– Significant deficiency related to preparation of financial statements and audit adjustments
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Town of Durham
General Fund – Fund Balance
$5,000,000
$4,500,000
$4,000,000
$3,500,000 • Restricted fund balance includes
unspent grant, donation, and
$3,000,000 scholarship funds.
$2,500,000 • Committed fund balance includes
balances that were set aside for
$2,000,000 specific uses and are non-lapsing
$1,500,000 per town vote.
• Assigned fund balance includes
$1,000,000 approved carry forwards and
$500,000 budgeted use of fund balance.
• Unassigned fund balance
$- represents the remaining fund
2022 2021 2020 2019 2018
balance not restricted or assigned
Nonspendable - - - - 479,724 for specific purposes.
Restricted 35,875 35,879 35,659 35,416 21,932 • Total fund balance increased by
Committed 955,912 842,023 1,047,814 1,654,606 595,289 $480,570 from 2021 to 2022.
Assigned 2,518,574 1,498,991 1,362,264 1,300,941 2,199,551
Unassigned 924,800 1,557,698 1,292,080 1,285,202 1,194,9793
Town of Durham
GENERAL FUND - REVENUES
Budget Actual Variance • Taxes were higher than budgeted
due to higher than anticipated
Taxes $8,682,585 8,757,597 75,012 vehicle excise taxes.
Intergovernmental 971,594 1,229,863 258,269 • Intergovernmental revenue was
higher than budgeted due to
Charges for Services 188,317 194,706 6,389
higher than anticipated state
Investment income 32,486 21,022 (11,464) revenue sharing and unbudgeted
grant revenues.
Other revenues 9,814 77,941 68,127
• Other revenues were higher than
Total revenues 9,884,796 10,281,129 396,333 anticipated due to higher
Carry forward balances 343,089 - (343,089) miscellaneous refunds and
revenues.
Utilization of prior year surplus 82,154 - (82,154)
• Total revenues were higher than
Total revenues and other sources $10,310,039 $10,281,129 $(28,910) the budget by 4%.4
Town of Durham
GENERAL FUND - EXPENDITURES
Budget Actual Variance
• General government expenditures were under
General government $582,923 494,698 88,225 budget due to turnover in management/
Public safety 496,153 499,388 (3,235) administrative positions and change in benefit
selections.
Public works 1,250,000 1,210,165 39,835
• Public safety expenditures were over budget
Solid waste disposal 307,821 299,732 8,089 due to vendor invoices that were received late.
Community services 67,515 54,855 12,660 • Public works expenditures were under budget
due to the reduced use of overtime, lower than
Education 5,537,964 5,537,963 1 anticipated paving costs, and changes in benefit
County tax 600,886 600,886 - selections.
Unclassified 135,974 16,703 119,271 • Unclassified expenditures were under budget as
the budget includes the amount raised in overlay
Debt service 969,803 969,801 2 that was only used to offset $16,703 in
abatements.
Capital outlay 361,000 91,040 269,960
• Capital outlay expenditures were under budget
Total expenditures $10,310,039 $9,775,231 $534,808 due to the timing of projects and capital
purchases.5
Town of Durham
General Fund – 2022 Expenditure Distribution
General government
5% Public works
Debt service Public safety 12%
Capital outlay Solid waste disposal
10% 5%
1% 3%
Unclassified
Community services
0%
1%County tax 6%
Education 57%
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Town of Durham
General Fund – 2021 Expenditure Distribution
General government Public safety
5% 5% Public works
Capital outlay 12% Solid waste disposal
2% 3%
Debt service Community services
Unclassified 1%
10%
0%County tax 6%
Education 56%
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Town of Durham
General Fund – 2022 Committed Fund Balances - Reserves
Balance Net Balance
Funds 1/1/2022 Receipts Disbursements Appropriations 12/31/2022
Emergency fund 16,953 - - - 16,953
Restoration fund 38,227 80 16,850 - 21,457*
Telecommunications 81,150 45,887 - (43,056) 83,981
Municipal capital 97,632 - - - 97,632
Recreation 20,138 8,559 - (4,955) 23,742
Fire/Rescue capital 225,401 - 63,000 59,000 221,401
Public works capital 289,039 - - 171,911 460,950
Eureka center 2,719 - - - 2,719
Grants 27,077 - - - 27,077
Unspent bond proceeds 43,687 - - (43,687) -
Total 842,023 54,446 79,850 139,213 955,9128
*Held in separate bank account
Town of Durham
General Fund – 2022 Restricted Fund Balances
Balance Balance Funds 1/1/2022 Receipts Disbursements 12/31/2022 Jackson Tupper Memorial Fund $ 123 - - 123 Durham Heating Fund 10,985 600 340 11,245 Giving Tree 868 476 800 544 Historical District Commission 1,330 - - 1,330 Subtotal – restricted funds in operating account 13,306 1,076 1,140 13,242 River Park Project 7,935 21 - 7,956 Scholarship Fund 14,638 39 - 14,677 Total $ 35,879 1,136 1,140 35,875
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Town of Durham
Operating Cash Analysis
Available Funds 12/31/2022 12/31/2021 Change Total operating cash 12/31/2022 4,765,552.00 4,038,041.00 727,511.00 Estimated non-tax revenues (first 7 1/4 months) 1,466,986.60 ** 1,342,465.58 124,521.02 Excludes grants Estimated expenditures (until next taxes are raised) (5,850,865.40) (5,628,321.21) (222,544.19) Net available funds 381,673.21 (247,814.63) 629,487.84 Operating cash balance 12/31/2022 4,765,552.00 4,038,041.00 Restricted balances held in operating cash (1) (13,242.00) (13,306.00) 64.00 Restricted in purpose Committed balances held in operating cash (2) (955,912.00) (842,023.00) (113,889.00) Can only be used for capital/other Available for expenditures 3,796,398.00 5 3,182,712.00 4 (113,825.00) Actual expenditures through 12/31/2022 9,684,191.00 * 9,315,842.00 368,349.00 One month's worth of expenditures 807,015.92 776,320.17 30,695.75
Note: 7 and 1/4 months used as taxes are committed in August *Excludes capital expenditures **Excludes property and supplemental taxes
(1) - Scholarship and River Park restricted balances are held in separate bank accounts.
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Source: durham_2022_audit_presentation.pdf on durhammaine.gov. Text extracted with pdftotext; no wording has been corrected.