Cass Road Commission receives favorable audit
Published 4:43 pm Friday, April 17, 2009
By By NORMA LERNER / Dowagiac Daily News
CASSOPOLIS – Cass County Road Commission received a favorable auditor's report for the year ending Sept. 30.
The audit from Rehmann Robson of Jackson stated the financial statements for the general operating fund and the parks fund ended in conformity with accounting principles.
This means, according to David Fisher, who presented the report Thursday morning that the audit "reflects a clean opinion."
There were no deficiencies in internal control considered to be material weaknesses. However, Fisher said there are areas for improvement during this current year.
He said there is a limited staff and that the commission must do the best it can with limited people.
He said in payroll, for example, there is no formal review of the payroll register before payroll checks are issued. He recommended that someone independent of payroll review the register of each payroll before it is finalized.
It was also noted there was no evidence documenting who prepared certain documents and who reviewed them.
It was recommended this be done.
Fisher also noted in capital asset inventory, there is a significant amount of capital asset inventory recorded, but there was no physical inventory taken to compare the asset listings to the actual items.
He recommended this be done every three to five years.
Also, it was recommended that the commission adopt and approve the use of a credit card policy for use by employees when needed.
The audit showed a fund balance of $2,631,129 for the year end.
Fisher said the commission is in good shape in relation to funding compared to other road commission audits. Total revenue was $6,419,784 with expenditures of $7,550,195, thus, a deficit of $1,130,411.
This amount added with other financing sources still left a shortfall of $300,728.
That total taken from last year's beginning fund balance of $2,931,857 left the fund balance of $2,631,129.
Fisher said this was good as the shortfall was expected to be at least $600,000.
Fisher urged the commission to watch its fund balance to avoid some problems that the road commission is experiencing right now.
Fisher said there is nothing to help out local growth funds.
Manager Louis Csokasy said the commission is encouraging townships to spend more money on roads that are matched with matching funds.
Vice Chairman Robert Powers said the commission has a critical bridge repair to be done, but the commission doesn't have the money. He said the state doesn't have the money, either.
He said the commission is talking about borrowing money from the county if that is a possibility.