The audit was for the year ending Dec. 31, 2009 and based on the Government Auditing Standards.
It was divided into two categories: government activities, which includes police, fire, library, and other service entities and business-type activities, such as water and sewer, which bring in revenue for the town.
Total assets for government activities totaled $2,611,575, business activities came to $2,551,949 for a total of $5,163,524.
Government liabilities totaled $20,867; business liabilities were $310,079 for a total of $330,946.
Net assets for the government-based activities were $2,590,708; business-type activities were $2,241, 870 for a total of $4,832,578.
Total liabilities and net assets for the governmental activities were $2,611,575, business-type activities $2,551,949 for a total of $5,163,524.
The audit noted that public safety exceeded their budget by $7,775 due to the cost of workers compensation insurance was not allocated to the departments during the budget process.
The audit noted several significant deficiencies in internal control, a matter , Jennings said that has been an issue for Fairmount and other smaller cities in Georgia.
These issues include a lack of segregation of duties caused by the limited number of employees working at city hall, which results in an overlapping of duties. This increases the chance that someone could “intentionally or unintentionally misappropriate assets,” according to the audit.
Other issues include the lack of a perpetual inventory system, which would allow the city to compare inventory results to actual physical inventory and allows management to evaluate how well the physical inventory has been controlled.
In other Fairmount news, the council postponed making a decision on hiring a new police chief and officer until all the council members could give their recommendations. The council said they would give their recommendations for several applicants to be interviewed.
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