Cookeville Looking Towards Clean Audit Report

The City of Cookeville looks to have a clean audit report for the 2017-2018 fiscal year.

Finance Director Brenda Imel said one notable change in the report includes re-categorizing benefits given to retired city employees.

“Financially, the city’s got a strong fund balance, particularly in our general fund so we’re in a strong financial position,” Imel said. “One thing this year was we had to implement a new government accounting standard called GASB 75. That has to do with other post-employment benefits which is health insurance for retirees.”

The audit revealed over $48 million in post-employment liabilities to retired city workers. Imel said although the amount may seem like a lot, prior reports had the amount categorized differently.

“This was the first year we had to actually put that liability. We knew that was out there, but nobody really knew what that amount was,” Imel said. “Going forward, that’s one of the areas where we need to look as we start this new budget process [and] look at areas like that, and see what we can to do reduce that liability going forward.”

The audit report submitted to the Tennessee Comptroller’s Office shows that nearly 36 percent of the city’s income came from local sales tax during the 2017-2018 fiscal year. That amount increased one percent from the previous year, while property taxes held steady accounting for 20 percent of the city’s income.

The city’s report was compiled by Duncan, Wheeler, and Wilkerson, P.C. and presented during last week’s City Council work session.