The audit report concerning Washington’s 2012-2013 fiscal-year books came in as expected: good news.

Martin Starnes & Associates, CPSAs, the city’s auditors, gave an unmodified opinion, according to Crystal W. Roberts, who works for the firm.

“It’s the highest level opinion you can receive,” she told the Washington City Council during its meeting Monday. “It was a clean report, no findings.”

The report shows the city took in $10.8 million in revenue for its general fund (day-to-day operations) during fiscal year 2012-2013 and had $14.3 million in expenses in the general fund. Transfers of revenue from other sources into the general fund made up the difference between general-fund revenues and expenses.

The $14.3 million in expenses was a $1.9 million over the previous fiscal year. That increase was caused by the refinancing of some debt, Roberts said.

Councilman Doug Mercer made his usual point concerning city finances.

“We cannot continue to spend more in the general fund than we take in. The mayor faults me for having shoebox accounting, but if I put money in the box, when I take it out and the box is empty, that’s what we’re showing there, I’m having to borrow money or bring money in from somewhere else. Until we correct that problem, we’re going to continue to have difficulties,” Mercer said.

“This time, I’m not going to say anything,” said outgoing Mayor Archie Jennings.

Roberts said the city’s fund balance (rainy-day money) shows good growth in recent years. The overall fund balance at the end of fiscal year 2012-2013 was at $8,045 million.

“This is one of my favorite slides because you can see where you were 10 years ago in comparison to the current fiscal year,” Roberts said. “In 2004, your fund balance was $5.6 (million) compared to $8 million this year. That’s a 42-percent increase over the past 10 years, and you’ll recall many of those years were during economic hardships.”

Although the city has an $8 million fund balance, that doesn’t mean the city can use all of it in any way it sees fit. State law places restrictions on how some of the fund balance may be spent. The city restricts use of some of the fund balance. With the available fund balance at 50 percent of general-fund expenditures, the city more than meets the Local Government Commission’s recommendation that a local government have an amount equal to at least 8 percent of its general fund in its fund balance, or “rainy day” fund to cover unexpected expenditures.

The city’s policy is to have a fund balance that’s 16 percent of its general fund, plus another $2 million.