Finance Committee - Agenda - 8/17/2022 - P12
Single Audit
As a recipient of federal and state funds, the City is required to undergo a yearly single audit in
conformance with the provisions of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). The City is also responsible for implementing an adequate internal
control structure to ensure compliance with the rules and regulations of these funds. This internal
control structure is subject to ongoing and/or periodic evaluation by management and the external
audit firm retained by the City for this purpose. Information related to this single audit including a
Schedule of Expenditures of Federal Awards; findings and recommendations; and auditor’s reports
on the internal control structure and compliance with applicable laws and regulations is available
in a separately issued single audit report. The single audit for the fiscal year ended June 30, 2021
is in progress and management does not anticipate that there will be any instances of material
weakness in the City’s internal control structure.
Enterprise Operations
The City’s enterprise operations are comprised of both a Wastewater Fund and a Solid Waste Fund.
Wastewater is fully self-supported by user fees. The most recent rate study was presented to the
Board of Aldermen in January 2021 recommending the approval of a 20% increase in the
wastewater user fee rates effective January 1, 2021 and a 15% increase in the wastewater user fee
rates effective January 1, 2022. These increases were approved by the Board of Aldermen in
February 2021.
Hydroelectric Operations
The City owns two hydroelectric dams. The Jackson Mills Dam (JMD), a one-megawatt
hydroelectric project is located on the Nashua River, just east of the Main Street Bridge, below
Margarita’s restaurant. The Mine Falls Dam (MFD), a three-megawatt hydroelectric project is
located on the Nashua River in Mine Falls Park.
Long Term Financial Planning
The City uses a multi-year model to plan for future budget periods. This exercise is designed to
provide the city’s financial planners the ability to project the magnitude and timing of certain fiscal
decisions as they relate to programs and services. The City also manages its capital budget process
looking out over a six-year time horizon. The capital budget submittals are updated annually. As
part of this planning process, the participating departments project their respective capital
expenditure needs over the next six-year period and submit the necessary documentation for
review by the members of the Capital Improvements Committee (CIC). The CIC reviews the
requests and ranks them based on several factors including the scope of the proposed project,
service, facility or equipment; the needs criteria such as a legal mandate, scheduled replacement,
improved working environment, increased public health and safety improved coordination and/or
more cost effective; conformance with the City’s Master Plan; and other factors such as anticipated
future revenues and expenses. The City has also developed and implemented a capital equipment
