CCU Audit Shows Improved Profit Margins

by Megan Wylie

In its regular meeting on Monday, June 24, the Clarksville Connected Utilities (CCU) Commission voted to accept the findings of the 2023 Audit of Financial Statements as presented by CPA Adele Jacobs of King, Jacobs & Lorfing, CPAs. For fiscal year 2023, CCU improved profit margins by reducing total expenses by six percent, while total revenues declined by three percent.

Though the broadband department did show some promise with a 30 percent growth in revenue, it has not yet reached a saturation point to cover costs and remains the poorest departmental performer, making up over 82 percent of the total departmental loss.

In her report, Jacobs noted the CCU retirement plan with Lincoln Financial was not audited, therefore net pension liability and related disclosures are not factors in the audit report.

The only finding of the audit was a fuel adjustment rate overstatement due to a 2018 Oklahoma Municipal Power Authority (OMPA) power billing error, discovered during a rate study in 2023. The error resulted in overpayment of $174,208 by CCU and inaccurate fuel adjustment calculations. When the overpayment was discovered and credited to CCU, the credits were not applied to fuel adjustment calculations on customer invoices. The resulting recommendation was to apply the credits to the fuel adjustment calculations, which according to CCU management, has already taken place. Jacobs also advised written accounting policies should be implemented.

GM Resignation

The Commission also accepted the resignation of General Manager Roger Brooks. Brooks, who has been on leave under the Family Medical Leave Act (FMLA) since March, expressed his love for the company and its people, but stated medical reasons necessitated his resignation. Roy Young continues to serve as interim general manager, since his appointment by the Commission on March 25.

Broadband And Phone Service Expansion

The Commission approved authorizing Bethany Bean, customer service/development representative and Jason Sparks, broadband/technical services manager, to expand PBX phone service outside the Clarksville city limits to large institutions and government buildings in other areas of the county…

For the rest of the story see the July 3 issue of The Graphic, found online and in businesses throughout Johnson County and surrounding areas.