Chelsea State Bank ad

CAFA gets ‘unqualified opinion’ on its 2012 audit

In addition to overseeing fire operations, Chelsea Area Fire Authority Chief Jim Payeur prepares an annual budget, which is a bit different than a governmental line item budget.

The CAFA budget is considered “an activity-based budget,” which by definition is “a method of budgeting in which the activities that incur costs in every functional area of an organization are recorded and their relationships are defined and analyzed.”

Also according to definition, “Activities are then tied to strategic goals, after which the costs of the activities needed are used to create the budget.

This type of budgeting is very different from line item budgeting, which municipalities use. What’s the same, however, is that both CAFA and municipal budgets are audited each year, and recently, the 2012 CAFA budget received an “unqualified opinion,” from its auditor Pat Hanniford. 

The audit covered Jan. 1, 2012 through Dec. 31, 2012 and shows about $1.452 million in revenues and about $1.620 million in expenses, with personnel costs the largest expense amounting to about $900,000. The difference was taken from the reserve or rainy day fund to balance the budget.

“I’m issuing an unqualified opinion on the audit, which is the highest level and all disclosures are to the highest standards,” Hanniford told the CAFA board on July 16, adding that all the necessary checks and balances were in place.

When asked about its fund balance, which amounts to about $650,000, Hanniford said he’d like to see a year’s worth of appropriations, which would amount to about $1.4 million, in reserves.

“The business of CAFA is to provide fire operations and its fund balance is unreserved and can be allocated any way the board chooses,” he told the CAFA board during a work session.

CAFA general fund revenues break down to about $1.239 million from the millage revenue, about $181,500 from the SAFER grant revenue, about $16,400 from member contributions and there was about $14,000 in other income.

The board plans to schedule a meeting with its accounting firm Seventh Rule to look at revenue and expense estimates for the remainder of the year.

With about $181,000 SAFER grant revenue about to go away as the grant funding is expiring, the board is looking at how many firefighters it can afford to retain next year, and would like to see “really good projections on revenue and expenses” this fall to decide how to proceed.

 

Print Friendly, PDF & Email

More News

April 29: Chelsea Area Historical Society Spaghetti Fundraiser

April 11, 2024

Chelsea Boys Track Opens Season with Win over Adrian

April 11, 2024

Chelsea Girls Track and Field Defeats Adrian, 107-27

April 11, 2024

Reminder: April 12-13 Foam Recycling Behind Stivers Restaurant

April 11, 2024

Recent Obituary: Shirley Ann Muir

April 11, 2024

Wing Classical Academy Slated to Open Later This Year; April 13 Informational Event

April 10, 2024

Recent Crime: Stolen Wallet, Identity Theft

April 10, 2024

Publisher’s Message: Please Be Patient

April 10, 2024

April 11: Daytime Closure of Sylvan Road in Sylvan and Sharon Townships

April 10, 2024

April 15: Parenting Connections at Chelsea District Library

April 10, 2024

Faith in Action: Spotlight on Its Volunteers

April 9, 2024

Chelsea Senior Center: Spotlight on April Events

April 9, 2024

Attorney General Launches Utility Website

April 9, 2024

April 16: Chelsea Library, Serendipity Books Celebrate Literacy, Dialog, and Community

April 8, 2024

Chelsea Human Rights Commission to Have Booth At Chelsea Expo

April 8, 2024

In Photo by Randall Lee: Ballet Chelsea Holds Chelsea Chamber of Commerce After Hours Event

April 8, 2024

Chelsea Track and Field Scrimmage at Brighton High School (with Slideshow)

April 8, 2024

Attorney General Offers Tips Following ATT Data Breach

April 8, 2024

April 9: What’s on the Lyndon Township Board Agenda

April 8, 2024

April 8: What’s on the Chelsea Board of Education Work Session Agenda

April 8, 2024

‘The Antichrist Cometh’ is Action-Packed Entertainment at Purple Rose Theatre

April 7, 2024