Audit Results Positive In Huntington Bay

With Huntington Bay revenues slightly up and expenditures down, the news from a self-imposed annual village audit was mostly positive at a regular Board of Trustees meeting Monday.

According to a report by accountant Alfred Arthur Hulse, village revenues increased from $1.79 million to $1.95 million from 2010 to 2011 while costs decreased.

"That's why you went from a operating deficit last year of $127,00 to an operating profit this year of just shy of $31,000," said Hulse, calling it a "step in the right direction." 

Hulse reported that for the fiscal year ending in May 2011, the village reduced unrestricted net assets (total assets minus total liabilities) from $456,000 to $393,000.

Village Mayor Herb Morrow said in an effort to reduce spending, the village separated two major components of the budget — police and non-police —and worked it from there.

"What we've done since 2009 is continue to reduce non-police spending because police spending is really out of control to a large degree" in that they are tied to a contract which mirrors the county, said Morrow, who cited reductions in staff and compensation as factors contributing to the positive audit numbers.

Hulse warned that although the numbers do show improvement, the village is operating "close to the bone" with equity basically coming off capital assets.

Hulse said in the future, he expects a greater emphasis from the state and other agencies for municipalities to post employment benefits which he said could be a "significant liability." He said the Town of Huntington has begun to report total liability in some financial statements.

In Huntington Bay, Hulse estimated total village liability to be $2.7 million based on life expectancy of employees and other factors. Using a hypothetical example, Hulse said the county would look at total village liability if the village ever were to disband its police force or close down. 

"It's just a bunch of bureaucrats scaring residents over numbers that don't mean anything," said Morrow. 

Village assets were reported at $1.94 million with liabilities totaling $1.57 million.

Additionally, Hulse recommended the village approve a standing list of vendors, such as Verizon or LIPA, that would not require signatures on vouchers sent by the village.

"You can send every voucher that you want in the world but you are never going to get it back with a signature, they just don't do it," said Hulse. "By having this list, the board authorizes the standing payment of the vouchers."