BPW receives ‘clean audit’
Jerry E. Halmon, Staff Reporter
The Bamberg Board of
Public Works received a clean
report on its June 30 2009 audit at
a special meeting of the Board of
Commissioners held on March 2.
According to Del Brown of the
Barnwell–based McGregor and
Company, the city-owned utility
company received “a clean report
on all aspects” of its independent
auditor’s report. “I have nothing
bad to tell you, it is an unqualified
opinion, a clean opinion and
materially correct,” Brown said.
In giving a summary of the
audit, Brown said the BPW had
total assets of just above $26
million with liabilities of about
$1.38 million, which brings the
company’s net assets to
approximately $25 million.
He stated that even though
$25 million “sounds like a lot of
money” he pointed out that
$18.554 million is tied up in fixed
assets such as capital assets,
property and equipment and a
small note that is owed. He said
that $172,000 is “restricted
money” in investments, bank
accounts, customer deposits and
an Iron Removable Stability note
the BPW has which leaves the
company with an unrestricted
balance of $6.2 million.
Again Brown said $6.2
million “sounds like a big
number.” The total operating
expenses’ for the BPW was $8.8
million for one year including
depreciations (no cash lost) of
approximately $1.4 million and a
cash payout to operate of about
$7.5 million for one year. Without
the depreciations the BPW
recorded a profit of $220,000 for
the year.
Bamberg Clerk/Treasurer
Bruce Watson asked Brown if
other utility companies would
consider raising their rates and fees
to cover the cost of depreciations.
“Would most people try to
increase their rates and fees and
what not to cover these
depreciations because one day it’s
going to run out," Watson asked.
Brown stated that if BPW
customers' rates were increased to
cover depreciations the company
would no longer have the lowest
rates in the state. “Youwould have
close to the highest,” Brown said.
“The way we look at it, a good
positive cash flow and building up
that unrestricted balance is the way to go.”
BPW Manager Bruce Ellis
said that bad debts are the reason
the company charges new
customers a deposit." That's why
we charge a $100 deposit to
protect the people who pay their
bills. The money is held in an
escrow account it’s their money,”
Ellis said.
Near the end of the audit
report Commissioner Buddy
Sandifer, who noted that this was
his first audit as a Commissioner
asked Brown how he would rate
the performance of the BPW and
its management.
“From A-C, I would probably
give it a grade of A,” Brown said.
