Goodrich – Jamie Cowan, CPA, is an audit manager for Lewis & Knopf of Flint, the certified public accounting firm that performed the Village of Goodrich independent audit.
Cowan, who presented the audit to the village council and residents in December 2004, agreed to answer The Citizen’s questions regarding the 2003-2004 village audit.
Citizen: Total village compensation accounts for what percentage of the budget?
Cowan: Total compensation, which includes wages, payroll taxes, and fringe benefits, was 11 percent of the total budget.
Citizen: How does this percentage compare to similar municipalities?
Cowan: The budget percentage comparison for compensation is not a reliable benchmark because the various fund activities, such as capital projects can skew the percentage. Based on our experience, the specific employee compensation is in line with other municipalities.
Citizen: It’s been said the village is sitting on’or hiding’money that could have been used to pay for the new municipal complex. Can you respond to this?
Cowan: The Village of Goodrich had $378,098 unrestricted fund balance at the end of the fiscal year June 30, 2004.
Citizen: For what purpose is that money set aside?
Cowan: (Unrestricted fund balance) means that this was the absolute maximum amount that was available for ongoing obligations to citizens and creditors.
Citizen: How does the unrestricted fund balance compare with similar municipalities?
Cowan: The typical range of unrestricted funds for municipalities is around one year’s worth of expenditures. The Village of Goodrich unrestricted fund balance, based on prior year expense figures, is currently at 73 percent, or nine months worth of expenditures.
Citizen: How does the Goodrich budget compare to that of similar municipalities’does it appear they’re trying to hide anything? An unbiased opinion on this would be welcome.
Cowan: The Village of Goodrich complies with the requirements of the ‘Michigan Department of Treasury Uniform Budget Manual for Local Units of Government? as mandated in the Public Act 2 of 1968, as amended, through Public Act 493 of 2000 (MCL 141.421, et al.) to establish their budget. Based on this compliance, the Village of Goodrich is in line with other municipalities.