Accounting

Four employees are dedicated to the accounting function. The Finance Director is Karen Duncan.

Tammy Kirkpatrick is the Accounting Manager. Janice Armour and Kathy Slaight are Accounting Assistants. Responsibilities of this division include maintaining the City's general ledger, processing payroll, accounts payable and miscellaneous accounts receivable, and producing the Comprehensive Annual Financial Report (CAFR).

The City's cash flow is closely monitored by this division with excess funds being invested at all times. The City has a diversified portfolio in accordance with the City's investment policy. All investments are in compliance with the Budget and Fiscal Control Act of the North Carolina General Statues.

The City is self-insured for its health insurance plan. Weekly monitoring of this program is the responsibility of the finance department.

The accounting division also arranges all debt financing. The City currently has two outstanding bond issues. Final repayment of the 1994 refunding bond issue will occur in the current fiscal year and the 2003 refunding bond issue will be repaid in fiscal year 2014/2015. The City has installment purchase debt in the general fund for public safety cars and a fire truck. Installment purchase debt was used to finance the cable rebuild in 2004 and is being used currently in the water and wastewater funds to finance the sodium hypochlorite (bleach) project. The City has received approval from the Local Government Commission to use installment purchase financing for the purchase of City Hall.

Both banking and audit services are bid on a cyclic basis; once every five years for banking services and once every three years for audit services. The preparation of the requests for proposal as well as the analysis of the proposals submitted is completed by the accounting division. Recommendations are then submitted to the City Manager and ultimately to the City Finance Committee and City Council, respectfully. The City currently contracts with BB&T for its banking services and Eric Bowman for audit services.

The Accounting division is responsible for all aspects of the City's audit. The audit is performed each August and lasts two weeks. The CAFR is completed in late summer/early fall and submitted to the Local Government Commission by the October 31st deadline.

Preparation of the annual budget also resides in this area. The Local Government Budget and Fiscal Control Act establishes the dates by which each stage of the annual budget process is to be completed. Departmental requests are to be submitted to the Finance Officer before April 30. The recommended budget must be given to the City Council by its regularly scheduled June meeting, and the Council must enact the budget ordinance by July 1.

The City of Morganton's capital budget (CIP) process begins in the fall. The CIP is a six-year forecasting tool which presents capital costs divided among the years of the forecast period. The CIP consists of all expenditures for equipment/vehicles, and repair or construction for all funds. The expenditures are usually $5,000 or higher before they are included in the CIP. City Council reviews the CIP at its winter workshop and gives informal approval. The final plan is adopted as part of the annual budget ordinance that is enacted by July 1 annually.

The City of Morganton's operating budget process begins in February with the dissemination of budget packets to all city departments. Department directors submit operating budget requests, while salaries and benefits for all employees are calculated exclusively in Finance. The final date for submission of all requests is mid March. The first review of the budget requests is by the City Manager and Finance Director with input from the department directors. The proposed budget is then reviewed with the Finance Committee of the City Council. The budget is presented at the June City Council Meeting and a public hearing is called for at that that time. The Council then adopts the budget ordinance for the proposed budget at a specially called meeting, later in June (after a public comment period).

The Finance Department monitors/oversees budgetary compliance throughout the year. It also prepares budget transfers and budget amendments when requested to do so.

The Local Government Commission expects municipalities to have fund balance available for appropriation equal to a minimum of 8% of the annual expenditure appropriation of the fund. The City of Morganton's expectation, set by the Council, is 15%. Currently the City's ratio is approximately 15%.