By Karissa Minn
kminn@salisburypost.com
SALISBURY ó The Rowan-Kannapolis ABC Board received a clean financial audit Thursday from accountants who praised its debt reduction.
Sam Leder and Daniel Morrow of Potter and Company, P.A., presented the report and financial statements at the boardís regular meeting.
The statements compare the state of the ABC systemís finances on June 30, 2011, and June 30, 2010.
The accounting firm has issued an unqualified audit opinion, which Leder said is ěthe highest assurance we can give you that these statements are materially correct.î
He said the board should be commended for paying down its long-term debt until just $2,790 remained on June 30.
In December 2006, the system borrowed $400,000 at a 4.5 percent interest rate, in order to renovate two stores and consolidate its other lines of credit. The loan was paid off in the last fiscal year.
The remaining debt is from a $27,895 zero-interest loan, also taken out in December 2006, for the purchase of a vehicle.
ěSeveral years ago, the organization had a lot of debt on the books,î Leder said. ěYouíve come a long way in reducing the debt load of the organization.î
Gross sales remained roughly the same as last year, decreasing by about $11,000 to $9.34 million.
Total taxes paid increased by $41,401 to $2.15 million.
ěWhat would you advise us based on what you see… in terms of being prepared in the future for another substantial increase?î asked General Manager Terry Osborne.
Leder responded that he normally advises businesses to try to advertise and promote their product more, but the ABC board canít do that.
ěItís hard for yíall to go out and actively try to increase sales, so you have to manage the rest of it,î Leder said. ěThe only thing you can truly control is your expenses.î
In the last fiscal year, operating expenses rose by $96,575 to just over $2 million. Law enforcement expenses decreased from $68,000 to nearly $39,000, because the system no longer pays for a full-time officer from the N.C. Alcohol Law Enforcement Division.
Expenses from credit card service charges continue to grow, rising from $81,000 to $94,000 in just one year. Leder said that could be due to a combination of increased fees and more people paying with plastic.
The board distributed all of its net profit, $114,243, to the county and municipalities. Thatís down from the previous yearís net profit of $216,167, which also was distributed in full.
At Thursdayís meeting, the ABC board also voted unanimously to distribute all of its $58,229 in net profit from the past quarter to local governments.
Total sales in September were $731,000, increasing 5 percent ($36,000) from $695,000 in September 2010.
Bottled liquor sales decreased 4 percent compared to September 2010, from more than $530,000 to about $509,000. Liquor by the drink sales went up by 4 percent from more than $164,000 to about $222,000.
Contact reporter Karissa Minn at 704-797-4222.
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