Getting your Trinity Audio player ready...

As with everyday individuals, the City of Winchester must have an audit performed each year. 

At the most recent City Commission meeting on Tuesday, Feb. 24, insight was gained. 

Basic financial statements that were audited and included supplementary data and an independent auditor’s report for the year ending June 30, 2024, were presented. 

Tom Sparks of the independent accounting firm Summers, McCrary, and Sparks P.S.C., Certified Public Accountants, did so while referring to a bound copy of documents over 100 pages long. 

“We are pleased to submit the annual audited Financial Statements for the fiscal year ending June 30, 2024. These Financial Statements are prepared in conformance with Generally Accepting Accounting Principles (GAAP) and the reporting standards of the Governmental Accounting Standards Board (GASB).” stated page 1 of the report. 

Speaking early on, Sparks referred to page 10 of the independent auditor’s report, under which there was an opinion section stating: “In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Winchester, as of June 30, 2024.” 

Clarifying further, Sparks spoke. 

“That means it’s a clean report,” he said. “We did not find any evidence of fraud or misrepresentation.” 

He did clarify that certain funds had monies left over that were subject to accounting. 

“You still have ARPA funds that have not yet all been extended,” he said. “Until those have been extended, you may be subject to the uniform administrative requirements.” 

ARPA funds, associated with the American Rescue Plan Act, can be utilized in various ways, such as economic development initiatives, general infrastructure needs, human services, etc. 

Among other points covered, an increase in revenue was noted in a section titled “Analyses of Governmental Funds” summarizing the balance sheet for 2023 and 2024. 

“Overall, the revenues did go up [approximately] $2 million,” Sparks said. “That’s good.” 

He also noted an increase in expenditures of approximately $3.5 million. 

“Increases are in most of the departments,” Sparks said, noting pay increases. 

Sparks also pointed out effective practices and provided ongoing advice. 

He directed commissioners to page 30 of the report, which detailed changes in the fund balance along with a statement on revenues and expenditures. 

“One of the things I wanted to point out is that if you look under the General Fund and in the intergovernmental [section], you’ll see that you had expenditures of $708,000. This is about 29 different…local and governmental county entities that request money from the city each year,’ he said. “That number seems to be growing each year, and I’m just pointing out, with a tight budget, the city may have to look at that and see how much they can actually fund these requests.” 

For the benefit of Commissioners, particularly newer Commissioners, Sparks also directed others to page 79 of the report that covered the different organizations and monies spent in which the City participates with the County to provide various services with joint funding from both organizations. 

These organizations include Winchester-Clark County Planning & Zoning, Winchester-Clark County Heritage Commission, Winchester-Clark County Parks & Recreation, and many others. 

Total contributions from the City of Winchester are $438,268.  

Sparks also covered additional areas of the report and asked the Commissioners questions. 

The audit was unanimously accepted, as presented by Sparks, with Mayor Reed and others expressing gratitude.