Financial Statements Now Available
January 23rd, 2013
In December, Keddington & Christensen, Certified Public Accountants, completed their annual, independent audit of the basic financial statements of both UTOPIA and UIA (Utah Infrastructure Agency) for the fiscal year ending June 30, 2012, as required by state law.
In previous years, Jensen & Keddington (having been selected through RFP), performed the audit; following corporate changes, Keddington & Christensen now executes the review of our financials.
We recognize that a lot of work remains to be done on the UTOPIA side, but it’s important to remember that the debt commitment is for 30 years, backed by our member cities’ sales tax revenue. An infrastructure project like this involves large sums of money which, through bonds, are paid off over an extended period of time.
On the positive side, we wish to highlight several UIA items:
- Operating revenues of $2,352,589 exceeded budget by $1.6 million.
- Operating expense (i.e., excluding interest and depreciation) was at budgeted levels.
- Operating profit (EBITDA) was $1.6 million better than budgeted.
- The net loss for the year was $8,292, which was better than budget by $3.3 million.
Yes, a loss of $8,292 is still a loss. But, when compared to the budgeted amount, and when considered with the other bulleted items, we certainly see this as progress, and as encouraging signs that our current business model is beginning to yield definitive results. For the fiscal year, UIA added 2,030 residential subscribers and 164 business subscribers, and made its first bond payment a month early, and with 100% subscriber revenue. UIA is on track to make the next payment as well.
By highlighting the UIA successes, we are not attempting to hide the UTOPIA situation, but only to show evidence that we are making progress. By further executing this strategy as we move forward, we expect to see additional successes which should, we hope, beneficially impact UTOPIA and prove the long-term viability of our effort.