Town of Portsmouth 2009 Financial Statements

155 South Main Street Providence, RI 02903

Introduction

Presentation will review the Town’s 2009 Audit Results Discussion of observations and recommendations Feel free to ask questions at any time

Topics of Discussion

Financial Statements

Observations and recommendations

Required Communication to Audit Committee

The General Fund

Total Fund Balance decreased by $176,729 Budgeted change was a decrease of $9,554

(liquidation of carry-forward encumbrances) Undesignated Fund Balance = $1,907,174 Undesignated Fund Balance represents roughly

4.1% of Operating Budget Current level is well below analyst benchmarks

(15% - 20%, one year debt svc, etc)

Fund Balance: last 11 years

Results of Operations

Revenues were below budget by $705,476 Property taxes $23,736 above what was anticipated Tax collection percentages:

95.9% of current year assessment 98.7% of all assessments outstanding

Tax Collections:% of current levy

Results of Operations (cont.)

Expenditures were $498,569 below appropriated amounts

No functional areas exceeded budget Significant favorable results in these areas:

General government Public safety Debt service

Net Bonded Debt per capita

School Department Unrestricted fund ended year with fund balance of

$857,491 $242,395 of this fund balance consists of

outstanding, but unfilled, purchase commitments (encumbrances)

$200,000 is designated for 2009-10 expenditures Balance of $316,965 is undesignated

School Department

Revenues were $894,613 below anticipated amounts

Expenditures were $620,514 below appropriations School Lunch Fund incurred at net loss of $15,975 School Restricted Funds (grants) recognized

$2,061,499 in expenditures

Town Pension Plan Funded status has deteriorated significantly since 2000

80.1% funded as of 1/1/2000 61.6% funded as of 7/1/2009

While all actuarially required contributions have been made, these amounts have significantly increased over past 10 years and town must anticipate additional future increases

Pension Funded Status

606468727680

99 '00 '01 '02 '03 '04 '05 '06 '07 '08 09

Observations & Recommendations

Material weaknesses and significant deficiencies were noted: Year-end closing and audit readiness at School Dept Interim financial analysis at School Dept Accounting for capital assets Other comments:

School cafeteria fund and summer school operating results OPEB Trust Fund

Questions?

The End

Thank you!