Kill Devil Hills receives good annual audit report

Published 8:01 am Tuesday, January 24, 2023

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The Town of Kill Devil Hills received a positive audit report from Emily Mills, partner at Porter and Company, certified public accounts, for the 2021-2022 fiscal year.

Mills gave the town an unmodified report, which is the highest level of assurance that independent officers can issue, and stated that the company found the that the town’s financial statements did not possess significant deficiencies or material weaknesses.

KDH finance director Beverly Kissinger gave a more thorough explanation of the town’s financial position and a breakdown of the numbers.

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The town’s total net position is $68,528,072, of which $43,965,575 represents the governmental net position and $24,562,497 represents the enterprise net position. This is an $8,909,790 increase in net position from the prior year.

The town’s total assessed value is $3.5 billion.

The total General Fund balance is $29,116,423. Once restricted spending from the state, capital reserve funds and the working capital and fund are subtracted, the unassigned remaining fund balance is $6,449,614.

Primary revenues come from ad valorem taxes (32%), occupancy and land transfer taxes (22%), sales taxes (14%) and grants (11%).

These numbers represent a 13% increase over 2021. While still an increase, the town didn’t see the level of growth that was experienced the year before – 2021 numbers were a 31% increase from 2020.

Land transfer taxes “tells the story” said Kissinger. This year’s total incoming land transfer taxes were almost $1.8 million, which is an 8.5% increase over 2021. However, 2021 saw a 128% increase over 2020.

Mayor Ben Sproul commented that these numbers mean things are “slowing down.”

Primary expenditures are general government (36%), which includes administration, finance, planning and building and grounds; public safety (35%), which includes fire, police and ocean rescue; transportation (13%); environmental protection (14%) and public works (2%).

Kissinger concluded the presentation by presenting the town’s 34th consecutive certificate of achievement for excellence in financial reporting.

Sproul congratulated the finance department and thanked everyone for their hard work. The town has a budget meeting scheduled for January 25 to discuss the upcoming year’s budget.