The Henry County Public Service Authority (PSA) improved its net position and cash flow from the previous fiscal year, according to an audit conducted by Creedle, Jones & Associates, P.C.
Kim Jackson, a representative of the firm, delivered the results of the fiscal year (FY) 2023 audit to the PSA Board of Directors during its October regular meeting.
The net position of the PSA increased by $451,861 during FY23. Jackson explained that net position refers to an entity’s assets in excess of its debt to creditors. Finances for the PSA were buoyed by increases in non-operating revenues, such as interest income and gains on the sale of assets. The authority also received capital contributions in the form of grants amounting to $721,967 during the year.
Another positive indicator for the PSA was the increase in cash flow for FY23. During the year, the authority improved its cash flow by slightly more than $1 million. Cash resources in the form of operating and investing activities generated a positive cash flow.
“Increasing both our cash flow and net position is quite the accomplishment given the current environment of high inflation,” said PSA General Manager Dale Wagoner. “It is even more impressive knowing that we have been able to do this while providing for our employees and without increasing our rates on customers in 10 years.”
The audit also had positive indicators for any future PSA activities. Specifically, the authority’s debt service coverage has drastically increased over the past 10 years. Debt service coverage is used to gauge an entity’s ability to repay its debts, including any bonds, loans or lines of credit. Since FY14, the PSA’s debt service coverage ratio has increased from 2.77 to 14.14.
In other matters, the board:
- Approved the carryover of $12,654,828 from the prior budget year to the current budget year for items encumbered during FY23 but not yet completed.
- Received monthly reports on finance, construction, maintenance, engineering, safety, treatment and regulatory compliance.