Hattiesburg City Council members were presented for the first time Monday evening with the city’s audit for Fiscal Year 2017, the approval of which would allow officials to reapply for the city’s bond rating with credit rating firm Moody’s.
Council members voted on the matter Tuesday night, after the PineBelt NEWS went to press early for the Thanksgiving holiday. With a successful reapplication for the bond rating – which was suspended last year because of the late completion of the Fiscal Year 2015 audit – officials would be able to borrow funds at a competitive rate, as well as apply for grants for projects in the city including the upcoming Public Safety Complex.
“When our administration walked in in July of 2017, there hadn’t been an audit since Fiscal Year 2014,” Mayor Toby Barker said. “What that meant was, we lost our bond rating with Moody’s and we missed out on millions of dollars in grants.”
The Fiscal Year 2017 audit, which was presented by members of Topp McWhorter Harvey, includes the first three months of the current administration’s operational management. According to the audit, the city had total assets of $333.19 million, including $26.89 million in cash and cash equivalents, $21.08 million in property taxes receivable and $33.72 million in land and construction in progress.
The audit also found the city did not implement procedures during Fiscal Year 2017 necessary for the timely production of financial statements; the city did not implement internal controls during the fiscal year that were sufficient to ensure that water and sewer customer account balances were complete, accurate and properly valued; and the city did not adequately account for capital projects funded by federal awards.
Of the 15 findings by Topp McWhorter Harvey, 14 findings were repeated from the 2016 audit, with one new one regarding the Federal Emergency Management Agency’s reporting with the State and Local Disaster Agreement.
Barker said since his administration took office, the city has completed three financial audits to bring the city’s standing into compliance. The first one was the Fiscal Year 2015 audit, which was received in December 2017, followed by the Fiscal Year 2016 audit in July and the Fiscal Year 2017 audit this week.
“We can’t say enough about this auditing firm that we’re working with, as well as our directors and the council,” he said. “It’s kind of been a real team effort to finish three audits in 17 months.
“So now that we’re back up to date, it’s on us to stay up to date. Now the next step is for us to go to Moody’s and ask for our bond rating back.”
The Council also was expected to vote Tuesday on plans for the Public Safety Complex, which would provide new homes for Hattiesburg Police Department and municipal court, as well as whether to approve a zoning change that would allow the construction of a new facility for South New Summit School on South 40th Avenue.
