January 30, 2008                                                                                             Contact: Sue Baker
For Immediate Release                                                                                   738-2000,

Audit shows surplus of nearly $850,000

For the sixth year in a row, city receives highest mark possible from independent auditors

WARWICK – Mayor Scott Avedisian announced today that the city has received, for the sixth consecutive year, an unqualified audit opinion of its finances. The assessment is the highest mark the city could receive, and affirms that the report “presents fairly, in all material respects, the financial position of the city,” as of June 30, 2007, according to Finance Director Ernest Zmyslinski.

Among the major points of interest:

• The city’s unreserved, undesignated fund balance on June 30, 2007 totaled $8,743,482. Although this is a decrease over the FY06 unreserved undesignated fund balance, the General Fund showed a budgetary surplus of $849,160. The designation of $3.97 million toward the FY08 budget and the School Department’s deficit of $672,947 were primarily responsible for the overall decline in fund balance.
• The city’s net assets – all funds combined – total $129.6 million
• As of June 30, 2007, the city’s gross revenues exceeded expectations by approximately $736,514, due largely to strong and steady property tax collection, interest on taxes, interest on investments and building permits.
• Expenditures came in below budget by $112,646.

• The School Department generated a deficit of $672,947. This amount has been set up as a receivable on the City’s books, but also reserved from the fund balance in the event that it is not repaid in a timely manner.  This deficit has had a direct impact on the reduction of the unreserved, undesignated fund balance.
• The City’s total investment in fixed assets, net of accumulated depreciation, amounted to $331.0 million.  Fiscal 2007 net additions totaled $2.1 million.  This was primarily due to a massive sewer construction program, improvements to the city’s infrastructure, and various school renovation projects.
• In fiscal 2007, the net assets of the Warwick Sewer Authority increased by $1.1 million to a total of $40.0 million. 
• Water net assets totaled $11.8 million on June 30, 2007. 

“In these difficult economic times, I am pleased that we have again posted a surplus,” Avedisian said. “I thank our Finance and Treasury departments for their continued vigilance and applaud our municipal department directors, who are working diligently to control costs within their respective divisions.”

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