newsnews

BVU receives a high grade on its annual audit report

The city’s utilities provider again received high marks on its annual audit report.

By David Mcgee
Published: November 18, 2009

» 0 Comments | Post a Comment

BRISTOL, Va. – The city’s utilities provider again received high marks on its annual audit report.

Conducted by Brown Edwards & Co., certified public accountants, the audit revealed increased revenues and no surprises, partner and accountant Richard Linnen told the BVU board of directors at its Monday meeting.

“It was a clean opinion and an unqualified audit, as it is every year,” Linnen said.

States require local governments to undergo annual audits to verify financial information and compliance with federal accounting and reporting guidelines.

The BVU audit includes its electric, water, wastewater and OptiNet telecommunications divisions.

This time, auditors reviewed information from fiscal 2008-09 and the work was completed in late October.

Stacey Bright, BVU’s chief financial officer, said the unqualified result was no surprise.

“If it was [surprising], it would mean we weren’t doing our job with compliance and reporting,” Bright said.

Assets for all four BVU divisions totalled $146.3 million, while its total liabilities were $62.4 million. The total net worth is $83.8 million – an increase of nearly $6.4 million over the $77.5 million reported in fiscal 2007-08, Linnen said.

As of June 30, BVU had $50.8 million in long-term, revenue bond debt. Those bonds were borrowed in 2003 and 2007, mature in 2030 and carry a total principal and interest balance of $73.7 million, according to the report.

The entire audit process takes weeks to complete, Bright said.

“The auditors will come in on the first business day of the new fiscal year and do inventory counts of our physical inventory,” Bright said. “Then around the end of August or first of September, the audit team will come in for two to three weeks and work with me and my staff setting thresholds and testing.”

Once auditors complete their work, the preliminary report is reviewed by the firm’s audit committee in its Roanoke office, Bright said.

dmcgee@bristolnews.com | (276) 645-2532