ENVIRONMENTAL SERVICES
FINANCIAL REVIEW
FINANCIAL PERFORMANCE AND SOLVENCY
Based on a comprehensive review and evaluation of the financial records, the corporation
meets all tests of solvency in terms of working capital, self-support, adequate cash, fixed asset base, and
consolidated financial performance.
ACCOUNTING SYSTEMS
Chart of Accounts
The corporation has an extensive and detailed chart of accounts. A computerized system is
utilized to generate a variety of financial statements. The system also allows individual tracking of
certificates of deposit and other investments. The chart of accounts has been updated to include new
procedures for coding the various goals and service centers.
General Ledger
The general ledger is very orderly and contains detailed information about each transaction. The
ledger posting is concise and accurate.
Accounts Payable A review of the Schedule of Accounts Payable showed that the corporation
has earned a reputation for paying balances on or before due date. Currently, 72 percent of all
outstanding accounts will be paid in full within 30 days.
Accounts Receivable A review of the Schedule of Accounts Receivable showed that 79 percent of
the receivables were 30 days old or less; 10 percent of the receivables were 60 days old or less; and 11
percent were 90 days old or less. The corporation is very effective in negotiating prompt payment of
amounts in arrears, and it is estimated that receivables are 98 percent collectible.
Cash Accounts Currently the corporation maintains three separate checking accounts, one
savings account, and numerous certificates of deposit at three local banks. The purpose of the five
separate checking accounts is to separate accountability of revenues and expenses. All of the account
balances are within the $100,000 insured by the FDIC.
Investments The corporation has made some sound investment decisions after developing an
investment policy. This policy clearly states the asset mix to be used and the rate of return desired.
Current investments are analyzed on a regular basis and changes are made as needed in order to
minimize losses.
Payroll The payroll procedures are clear and well documented. Records include timesheets,
payroll calculations, and paychecks. The corporation is changing to a bi-weekly payroll.
Payroll Taxes The corporation has been paying taxes in compliance with IRS requirements and
on a timely basis.
Board/Finance Committee Minutes and Reports
The Finance Committee meets on a regular basis and minutes are available for each meeting.
Statements of Revenues and Expenses and a total of assets and current liabilities are available on a
monthly basis. The reports provide information for the current month, the previous month, and the
fiscal year to date. A comparison to budget is also completed and a report on budget variances is
prepared.
Long-Range Plan
The corporation has a five-year, long-range plan. The goals in the plan effectively address the
financial means by which they will be achieved.
Annual Report
The corporation prepares an annual report.
Facility Reports
Program directors for each service center provide current and year-to-date actual and budget
information.
Audits
An outside and independent auditor is contracted each year to complete a thorough audit.
FINANCIAL MANAGEMENT
The corporation has strong financial management, dealing with financial issues based on
existing policies and procedures. The corporation has demonstrated its ability to analyze financial
situations and to systemize accounting procedures appropriately.
Policies and Procedures
Numerous policies and procedures have been written and implemented. Areas addressed
include depreciation, petty cash, investments, purchasing, and authorization to disburse funds.
Budgeting
The corporation’s budgeting process is well defined and generally results in realistic and
realizable budgets.