The City of Greenwood received good news from auditors at its special called meeting Monday night.
Josh Garvin, of the accounting firm Manley Garvin LLC, presented the city’s audit report from 2019 to City Council.
Garvin said the city is different than other governments because it operates on a calendar year instead of a typical July to June fiscal year. Garvin said the city’s general fund has increased by $230,000.
He said the hospitality tax fund increased just more than $1 million.
Garvin also provided an overview of the city’s financial standing through the years, saying the five-year trend analysis of the general fund showed the city is in a good position and that the GFOA recommends a government keep two to five months of operating expenditures in the bank.
“You guys have hovered right around four months’ operating expenditures,” Garvin said. “That’s kind of in that sweet spot.”
The city’s only audit issue was an overstatement of net pension liability at an amount of $579,512. This created what Garvin called a “material weakness” in the report that required a restatement.
The report notes that in prior years “the city has failed to correctly account for contributions made subsequent to the net pension liability’s measurement date.” It blames the cause of this issue on the city’s internal control over recording its net pension liability not functioning to ensure proper recording.
The audit reports the city corrected this during 2019.
City council voted unanimously to accept the audit.