An audit of the town's books for the fiscal year that ended June 30, showed the town socked away more than $390,000 last year.

Accountant Phyllis Pearson of Petway Mills and Pearson reported to the town board Nov. 14 that their budget audit found the town in compliance with financial practices, and had a good year despite the economic conditions.

"You had no over expenditures, no statutory violations and meet all state requirements," Pearson said.

Pearson also reported the town collected 96.98 percent of total taxes, reaching 98.72 percent of taxes on real property and 74.99 percent on registered vehicles.

"You should be complimented for pursuing tax collection as well as you do," Pearson said.

The financial statements used in the audit come from the town of Wendell. The accounting firm provides an opinion on whether the financial statements are free of misstatement by testing evidence to support the amounts and disclosures made, and assess the accounting principles used and significant estimates made by the town.

"We issued an unqualified opinion that found the financial statements conform with generally accepted accounting practices," Pearson said.

The audit presents the financial position of the government activities, business activities and major funds.

Governmental activities include most basic services: public safety, parks and recreation, and general administration, which are funded by property taxes and state and federal grant funds.

Business-type activities consist of debt payments and reimbursements from Raleigh due to the water and sewer merger with the city.

Pearson reported that as the end of the 2010-11 fiscal year on June 30, Wendell had $14 million in total assets and $7 million in total liabilities, leaving total net assets at $7 million.

Assets including buildings, roads and bridges, land, machinery and equipment, park facilities and vehicles totaled $3.4 million.

The $7 million net assets increased by $175,000 from fiscal year 2009-10, primarily due to increases in property taxes.

For 2011-12, property taxes are expected to increase budget revenues by 1.45 percent.

Budget expenditures are expected to decrease 10.59 percent to $4.5 million due to decrease of federal grant projects.

Wendell's total debt, $5.9 million, decreased 11 percent, by $807,000, during the fiscal year.

The town has a total fund balance of $4.4 million.

The current available fund balance is 60 percent of general fund expenditures.

Wendell determined it would maintain 40 percent of fund balance for unforeseen needs or opportunities or to meet cash flow needs of the town.

In the fund balance, $1.68 million is designated for capitol projects, but the remaining $2.75 million is unreserved.

"You can use that on whatever you really desire to do," Pearson said.

Pearson also explained the town will have to spend $4,000 to $5,000 each year beginning in 2011-12 to hire an actuary, as required by state law, to estimate the liability of employment benefits provided to employees after they retire.

"The League of Municipalities got a group rate for the actuary, since it will be required (of towns) statewide. We want you to be aware it is a burden that will be on you in the upcoming year," Pearson said.