Audits of the latest century show “deteriorating financial condition”. More than $4.5 million in funding shortfall: NorthEscambia.com

An audit of the Town of Century for the past fiscal year has been released by the state, showing that the town’s financial condition has once again deteriorated.

The audit, which was due June 30, 2023, had not been received by the Florida Auditor General as of December 21, 2023, and had not been published online. For nearly a decade, Century has missed annual audit deadlines required by state law.

A 2019 grand jury report found the town’s gross mismanagement, losses of more than $1 million in public works, natural gas shortages, and improper borrowing of nearly $3 million from an account with a 750-year repayment plan; A financial emergency has been declared. The town has never worked to comply with many of the grand jury’s recommendations.

According to the 2021-2022 fiscal year audit, as of September 30, 2022:

• The town’s overall financial condition shows signs of deteriorating financial condition as described in Florida law. Overall factors contributing to this situation include a lack of short- and long-term financial planning, inadequate cash management activities, and a lack of analysis of the existing tax rates and fee structure of the proprietary business. Local option sales tax revenue recorded in the special revenue fund is limited for certain purposes. Therefore, these funds must be repaid and failure to do so would be considered an inappropriate use of restricted income. The town is suffering from a recurring operating deficit in its natural gas fund and is running out of funds.
• The town had a deficit of $2.7 million in its general fund and $1.9 million in its natural gas fund. Both of these funds borrow heavily from other funds in the town. The General Fund and Natural Gas Fund owe approximately $2.8 million and approximately $212,000, respectively, to the Special Revenue Fund. In June 2018, the City Council approved a $300 monthly repayment plan for the interfund loan between the general fund and special resources fund.
• During the fiscal year under review, the following financing issues arose, including a shortage of customer deposits in the natural gas fund and a shortage of reserves for public debt service in the natural gas fund.
• The town had not properly reconciled multiple general ledger accounts at the end of the year. Accounts in the town’s general ledger should be reconciled monthly to confirm details in the subledgers, reconciling items should be investigated and reconciled promptly, and appropriate supporting documentation for reconciliations should be maintained. there is.
• Towns may have assets that are not properly recorded in town records. Additionally, there may be properties recorded in town records that are no longer in use or cannot be located. The town had not compiled an inventory of its assets.
• A list of deficiencies and issues was also identified, many of which were the same as previous years.