Walhalla’s outside auditor says the city is in great financial shape. With that comment, Certified Public Accountant Jason White deliver and explained the City of Walhalla’s accounting for the fiscal year July 1, 2011 through June 30, 2012. Mayor Danny Edwards echoed White’s comment that City Administrator Nancy Goehle and other department heads had done a good job handling funds. One particular accomplishment was a smaller than projected transfer of funds from the water department to the general fund. However, Mayor Edwards called attention to part of the audit which showed a $157 thousand dollar loss in sewer services. Mr. White explained that the $157 thousand dollars can be attributed to depreciation, which is a non-cash item.