Audit reveals 'no deficiencies' in BPW financial statements

By Herald-Whig
Posted: Nov. 28, 2017 9:35 pm

HANNIBAL, Mo. -- The Hannibal Board of Public Works was recently declared financially sound by public accounting firm Wade Stables, which conducted an audit at the end of fiscal 2017, which ended June 30.

"The purpose of an audit is to provide an opinion on financial statements and see that everything is presented fairly," certified public accountant Steve Boggiano told the BPW Board on Tuesday. "There are no deficiencies to report on."

Wade Stables ultimately delivered an "adverse opinion" on the BPW's audit. Ironically, an adverse opinion is not negative, Boggiano explained.

"It just means that this audit only contains Hannibal Board of Public Works financial statements," he said. "Typically, the entire city (entities) submit info for this audit, as well."

The audit highlighted several positives regarding the BPW's fiscal responsibility, including:

Electric, water and sewer revenues increased by 1.19 percent, 6.48 percent and 1.79 percent, respectively.

Total assets increased by about $12 million from last year.

BPW's total net income increased by about $3.4 million.

Also Tuesday, the board discussed how the search is going for an alternative treatment system to ammonia in the city's drinking water. Granulated activated carbon has long thought to be the system that would implemented, but recent data revealed that might not be so.

Granulated activated carbon has been tested at the city's water treatment plant by engineering firm Black and Veatch; however, rather than the granulated activated carbon lasting up to a year before needing to be replaced, testing has revealed it to lasts only about 120 days.

Black and Veatch is now analyzing the feasibility of using a reverse osmosis system. If the city were to use granulated activated carbon as a filtration method, the additional costs of replacing it would carry a price tag similar to that of a reverse osmosis system.

"This is making reverse osmosis a competitive alternative," BPW General Manager Bob Stevenson said, adding that more information regarding that method will be available in a final report that Black and Veatch will give the BPW in late December.