Nesquehoning water authority tentatively approves completed audit
The Nesquehoning Water Authority tentatively approved its completed audit Monday night, which was presented by John M. Nonnemacher, a certified public accountant for Snyder & Clemente in Hazleton.
In the audit, Snyder & Clemente stated that the authority's financial statements "present fairly, in all material respects, the respective financial position of the business-type activities of the Nesquehoning Borough Authority as of Sept. 30, 2013 and 2012, and the respective changes in financial position and cash flows there of for the years then ended in accordance with accounting principles generally accepted in the United States of America".
The financial statements revealed a $15,455 decrease in the sales of water from the previous year and a $63,946 increase in operating expenses.
Total operating revenue as of Sept. 30, 2013 was down $18,812 from the prior year total of $707,656.
The $608,000 grant received for the water tank project represents an amount that is approximately 88 percent of total operating revenues for the year and improved the financial position for the authority this year.
The total net position for the authority is $4,404,821, which is up from the prior year total of $3,748,398.
It was noted that there was a $20,000 increase in electrical charges for the year.
Given the significant increase, the authority will seek out other suppliers with the hope of securing a better rate in order to decrease expenses.
Following the presentation of the audit, Michael J. Peleshak of Alfred Benesch & Co. discussed several change orders that did not sit well with the authority board.
Board members, along with engineer Ron Tirpak, felt that the unit pricing as presented was too high and that negotiations should be made to reach a more reasonable figure.
Additionally, a change order was requested for an additional 30-day extension for substantial and final completion of the water tank project.
The project was to be completed Nov. 18.
Tirpak noted that the authority is entitled to liquidated damages since the project was not completed by the contract deadline.
There was additional concern with propane tanks that need to be installed underground and potential freezing of the ground that could stall completion until April.
Authority members decided to hold off on granting any change orders until the system is up and running and until all final figures are in and negotiations can take place.
In other matters, the authority voted to reject the lone bid for chemicals and re-advertise.