The Jenkinsville Water Company disseminated to its shareholders their 2011 financial audit at their Oct. 1 board meeting. The report, prepared by Columbia CPA V.R. McConnell and dated Dec. 31, 2011, shows the company’s net assets at $1,685,878 (down from $1,702,950 in 2010) with revenues falling $153 short of expenses at year’s end. The report also cites several concerns from 2010 that the company has addressed.
McConnell’s report identified only one “material weakness” in the 2011 review, a lack of bonding insurance as required by the company’s bylaws. McConnell’s audit notes that that weakness has been addressed and insurance has been obtained by the company.
The audit also addressed a 2010 discrepancy between cash collected by the company and cash deposited into the company’s bank account. According to the audit, the Jenkinsville Water Company’s accounting software reported $367,495 in total cash receipts collected during 2010. “However, the deposits made into the bank account, after adjustments for transfers, shows only $335,168,” the audit states, a difference of $32,327. The 2011 audit notes that now the bank account reflects the amounts recorded by the company’s accounting software.
The audit also notes that the company has obtained insurance for its buildings and other assets, which were uninsured in 2010.
The audit’s 2010 findings that the company’s IRS forms 941 had not been filed when required have also been addressed in the 2011 report. Form 941 is used by employers to report federal income tax withholdings from employee paychecks and is due to the IRS quarterly.
“The auditor’s request for copies of forms 941 for payroll testing were not responded to because the forms were not prepared or filed for several quarters during the year,” the report states for 2010.
The company has since outsourced this responsibility to a third-party “with appropriate accounting experience,” according to the 2011 audit.
The audit also shows the company holding cash and cash equivalents totaling $11,607 at year’s end, and a depreciation of property and equipment totaling $2,019,246.
McConnell declined to answer any questions regarding the audit, instead referring all inquiries to company president, Gregrey Ginyard. Phone calls to Ginyard were not returned at press time.
