CHAPMANVILLE — The Chapmanville Town Council recently voted to have a firm perform a two-year single audit at a cost of $14,400.
According to Jeff Vallet, the town’s accountant who addressed the council about the issue on Tuesday, Nov. 12, the typical cost for an audit of the town is around $6,000. However, recent grants for water and sewage projects mean the cost for the next audit will be more due to certain requirements.
“It’s more expensive this year, and it’s primarily because the water and the sewer have more than $750,000 of grants, either from the federal or state government,” Vallet said. “If you have more than $750,000 worth of grants, you are required to do what is called a single audit, and in the accounting world, that means, ‘Ouch, I don’t want to do it,’ because it’s more work — more paperwork, more requirements as an auditor, as an accountant needs to do, so normally, we would pay for a two-year audit about $6,000 without the single audit.”
Out of five different accounting firms he sought, Vallet selected BHM CPA Group from Huntington at a bid of $14,400. Vallet told council he could try to re-bid the audit if they’d like, but that BHM is the one who could have it in by the March 1 deadline.
Council ultimately voted to approve BHM to perform the audit. Town recorder Terilyn Wilson asked Vallet if he thinks it’s fair the town split the bill 50/50 with the water and sewage departments or if those departments should have to pay a greater fee this time.
“Had we not had the grants going on, the big fee would be $6,000,” Vallet said, “so you’re looking at, I think — we paid the audit fee last year, which was $6,000. We didn’t ask for anything from them. I think they need to bear a greater — at least 50% of the burden — because the income being generated on their side is why the costs are so much higher.”
In other matters, a new retirement policy and pension fund for town employees with Nationwide Mutual Insurance Company was approved. Council also voted to switch direct deposit pay from Woodforest National Bank to in-house deposits.