Partner Mike Kleger and Manager Leslie Michalik of Pigg, Krahl and Stern accountants delivered Pocomoke’s financial statements and audit report for fiscal 2016, which ended June 30, and noted a deficit in net position of $639,000 from last year.
Net position is the term, adopted in 2011, that replaces net assets. The shorthand in describing the term is if 100 widgets were purchased for one dollar each, but are now trading for $9, the net position is worth $900, or the total current value minus the cost of the initial investment.
“The City’s combined net position, after depreciation, at June 30, 2016 was $10,705,000. Of this total, $13,400,000 is invested in capital assets or restricted for special revenue leaving an unrestricted deficit in net position of $2,696,000,” the report reads.
Meaning, the town’s liabilities outweigh its assets by almost $2.7 million.