West Newton gets good marks during annual audit
WEST NEWTON — The accounting firm Cypher & Cypher proclaimed West Newton to be in excellent financial health but advised the borough to better prepare itself to handle unexpected emergencies.
During the monthly meeting of the council on Monday evening, Steve Cypher, president of Cypher & Cypher, presented highlights of the borough’s annual financial statement. He noted that although the General Fund’s fund balance decreased to $487,447 during the past year, this current level is well above the recommended minimum rule of thumb between 7 percent and 15 percent of current budgeted expenditures.
“An appropriate level of fund balance is essential for the proper operation and fiscal stability of the borough,” he said. “It is important to remember that any fund balance used in a given year will need to be made up in future years.”
Cypher added that West Newton should continue to look for ways to improve its financial performance.
“You may wish to consider the establishment of a ‘Rainy Day Fund’ for protection against possible future accidents or catastrophic weather events such as flooding,” he said. “It would be a good idea to look for additional ways to generate sources of revenue.”
In addition, Cypher & Cypher recommended that that borough have time sheets signed or initialed by both the employees and their direct supervisor.
Council President George Molovich was pleased to hear that West Newton is exceeding its financial expectations.
“It gives us a sense of pride knowing that we were able to maintain the fund balance, despite inflation and various expenses,” he said. “We will consider the auditor’s recommendation for establishing an emergency fund. However, I don’t think raising taxes is the best way to generate more revenue. That discourages new businesses and families from moving into West Newton.”
In other action, the council:
n Approved the hiring of four part-time police officers.
n Approved a highway occupancy permit for work on the Second Street Project.
n Authorized the solicitor to draw up a new ordinance that would restrict door-to-door salespersons from soliciting households on holidays.
n Presented Pam Humenik, borough secretary and treasurer, with a plaque that acknowledged her for 25 years of service to West Newton.