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Even after these adjustments are made - which we hope are
<br />temporary - the number-of employees on the Seaboard, in this area,
<br />will be approximately 1700~ sad the payroll approximately $3,000,000.
<br />per annum. The Seaboard will therefore continue to be one of~the
<br />largest and most important industries in this section, and I feel
<br />sure you will realize that the Receivers and the entire management of
<br />the property feel deeply interested in the welfare of the comm~mity
<br />and desire, in every w~v consistanT with the performance of their du-
<br />ties, to contribute to its progress and success. In this effort effect-
<br />lng our mutual welfare, we feel sure that when you understand the con-
<br />ditions by which we are confronted we will have your sympathetic co-
<br />operation and assistance, and that you will render us every reasonable
<br />aid in working out the very difficult problems by which we are confront-
<br />ed in the administration of this important public agency.
<br />
<br />Yours very truly,
<br />
<br />L.R. Powell, Receiver.'
<br />
<br />Respectfully submitted,
<br />
<br />E.B. Hawks, City Manager."
<br />
<br />Motion of Mr. Hutchins to file same, was adopted.
<br />
<br />3rd - "Herewith I submit the report of the audit of the City's books for the
<br />year ended December 31st, 1935, which was made by Mr. Monroe Nash, Certified Public Accountant.
<br /> Inasmuch ae there are not a sufficient number of copies of the complete
<br />audit for distribution, I a~ attaching hereto for your convenience, copies of:
<br />
<br />(1) Consolidated Balance Sheet
<br />(2) Analysis of the General Surplus
<br />(3) Sheet showing General Government Income.
<br />
<br /> (1) In the ConsolidatedBa!anoe Sheet, you will obserVe the item
<br />"Surplus-General", $253,757.91. This item has bee~ increased in the Accountants ~ep~r~ by
<br />charging off the City's n~Te of $112,585.~O, ea~ried~im t~ ~inking ~tm~,~t~Whieh
<br />~or has not charged off the Oity~z books, and will no~, w~thout authority from the
<br /> ~"urthermore, this surplus in the Accountant's report, is reduced
<br />by $192,?~2.79, representing 9ne-half of the Ferry's u~appropriated surplus, which was credit-
<br />ed to this account tn the 1935 audit. In explanation, I quote from theAudit, the following:
<br />
<br /> 'Recently one of my predecessors who audited the
<br /> account~of the Oity saw fit ~o set up an amount purport-
<br /> lng to be "one=half the unappropriated surplus of the
<br /> (Portsmouth and Norfolk County) ferries".
<br /> If this item had been carried in the books of the
<br /> CiTy for several years or if i~ represented cash or its
<br /> equivalent in the possession of the ferry company, I would
<br /> be constrained to adjust it ~o the exact amount of one-D~lf
<br /> of this unappropriated surplus and let it remain. But
<br /> examination of the balance Shee~ of the ferry company shows
<br /> that this amount does not represent cash or any available
<br /> asset.
<br /> I have accordingly charged this amount, $192,742.79
<br /> off and suggest that this also be done on the City b0oks.~
<br />This item has not been charged off the books; however, both the Accountant, M~. Nash, and the
<br />City Auditor, Er. Brinson, are of the opinion that it should be charged off.
<br /> .... (2) In "A~alysis of General Surplus", the item $!47,299.63, Net
<br />Operating Income, includes $6~635.'63 received from the Virginia Electric~ Power Company. The
<br />item $112,5~5.30 has bee~ exlmlained in ~he foregoing paragraph (1).
<br /> The iTem~ $35,633.55 represents uncollected penalties on delin-
<br />quent taxes, and is not regarded as an asset until collected, and for this reason, the Accoun-
<br />tant has deducted it.
<br /> (3) Under "Income, General"~ there was a shrinkage in "Operating In- _
<br />come", as compared with the previous year~ of~ $25,576.52, due _almost entirely to the re-assess
<br />ment of real estate values.
<br /> Under "non-operating" income there was a shrinkage in receipts
<br />from The Ferries, of $27,778.28~ and an increase of $17,893.~9 through funds received from the
<br />Alcoholic Beverage Control Board.
<br />
<br /> A summary of all appropriations and expenditures for the year.are shown in the
<br />Audit, Sheet #2, E~hlbit #~, as follows:
<br />
<br />audit:
<br />
<br /> Bud2e~ Actual Balance
<br />Grand Total $ 1,263,829~31 $ 1,2~6,O~5.3~ $ 17,783.99
<br />
<br /> This is clarified by the following tabulation, more in detail
<br />
<br />than shown in the
<br />
<br />
<br />
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