Audit Wrap-up Town of Morrisville April Adams, CPA Partner - - PowerPoint PPT Presentation
Audit Wrap-up Town of Morrisville April Adams, CPA Partner October 24, 2017 Client Service Team Role of External Auditor Key Highlights - Results Internal Controls Agenda Significant Audit Areas Financial Results Summary Questions and
April Adams, CPA
Partner October 24, 2017
Client Service Team Role of External Auditor Key Highlights - Results Internal Controls Significant Audit Areas Financial Results Summary Questions and Comments
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LeAnn Bagasala
Audit Manager
Eddie Burke
Relationship Audit Partner
April Adams
Service Audit Partner Alex Harris Audit Senior Accountant
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Plan and Perform Procedures Obtain Reasonable Assurance
Express Opinions on:
Statements
Policy Changes Estimates Journal Entries
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Unmodified Opinion – Financial Statements Unmodified Opinion – Yellow Book Unmodified Opinion – State Single Audit
No Significant Deficiencies or Material Weaknesses Observations: IT Related Matters
No Findings
PAJE for Municipal Service District Fund CIP Closure of Water and Sewer Fund
Prior Period Adjustments: OPEB restatement LEOSSA restatement Shiloh Sewer CPF restatement
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(including use of P- Cards)
Close
Journal Entries
IT Controls
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Other Items
Accrued Liabilities
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17,909 1,841 8,986 1,143 491
Taxes Permits and Fees Intergovernmental Services Sales for Services Miscellaneous
16,675 1,768 8,516 1,109 614
2017 Total: $30,370 2016 Total: $28,682
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8,167 5,925 1,665 1,723 1,728 4,303 2,231
Public Safety Public Works Debt Service Capital Outlay Cultural and Recreation General Government Development Services 8,159 5,207 1,458 1,148 1,618 3,542 1,989
2017 Total: $25,742 2016 Total: $23,121
11 7,385 9 2,246 2,823 15,255
Restricted Non Expendable Committed Assigned Unassigned 7,133 40 931 2,305 15,258
2017 Total: $27,718 2016 Total: $25,667
12 3 13,375 33,542
Petty Cash Carrying Amounts NC Capital Management
2017 Total: $46,919 2016 Total: $34,020
3 3,882 30,135
Governmental Activities 13
2,189 1,616 36,675 11,187 10,299 3,961 62,770
Vehicles Equipment Land CIP Buildings Other Improvements Infrastructure
2017 Total: $128,697 2016 Total: $113,827
1,814 1,717 34,002 5,047 10,616 4,125 56,506
Governmental Activities 14
945 19,330 1,015 1,603 3,466 561
Compensated Absences Bonds LEOSA Installment Notes Net Pension Obligation Other Post Employment Benefits
2017 Total: $26,920 2016 Total: $12,810
895 8,982 69 2,012 852
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Clean Opinion Journal Entries Good Internal Controls No Significant Deficiencies Identified
Full Cooperation with Management
April Adams, CPA
Service Audit Partner aadams@cbh.com 919.782.1040
Eddie Burke, CPA
Relationship Audit Partner eburke@cbh.com 919.782.1040
Changes in Fund Balance Summary (consolidates Municipal Service District & Capital Reserve Funds) 2016 2017 Increase / Decrease from Previous Year Total Fund Balance (Includes Capital Reserves) 25,667,275 $ 27,717,701 $ $ 2,050,426 Non-Spendable: Prepaids 40,263 8,886 (31,377) Restricted: Stabilization by State Statute 4,437,404 4,675,775 238,371 *Subsequent Year's Expenditures (PO Rollover) 1,107,166 1,087,248 (19,918) Stormwater
1,563,938 1,599,108 35,170 Police Operations & Activities 24,918 22,678 (2,240) Committed: General Government Capital (CRF) 602,704 1,902,254 1,299,550 LEO Pension Obligation 328,296 344,103 15,807 Assigned: Subsequent Year's Expenditures (Appropriated) 2,305,000 2,823,000 518,000 Unassigned Fund Balance 15,257,586 $ 15,254,649 $ $ (2,937) General Fund Expenditures 23,121,319 $ 25,741,841 $ $ 2,620,522 Unassigned Fund Balance % of Expenditures 65.99% 59.26%
Unassigned Fund Balance $ Above 45% Policy 4,852,992 $ 3,670,821 $ $ (1,182,172) Source Notes: Exhibit 3 & Exhibit 4 TOWN OF MORRISVILLE GENERAL FUND BALANCE ANALYSIS As of June 30, 2017 *PO Rollover is included as part of the stabilization by state statute calculation and is shown separately for comparison
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Historical Comparison (consolidates Municipal Service District & Capital Reserve Fund) 2012 2013 2014 2015 2016 2017 Total Fund Balance (Includes Capital Reserves) 13,293,617 $ 14,403,133 $ 17,282,289 $ 21,252,176 $ 25,667,275 $ 27,717,701 $ Non-Spendable: Prepaids 170,762 4,458 1,383 13,326 40,263 8,886 Restricted: Stabilization by State Statute 1,294,281 1,443,902 3,820,617 3,690,527 4,437,404 4,675,775 * Subsequent Year's Expenditures (PO Rollover) 274,758 526,368 503,794 1,106,219 1,107,166 1,087,248 Stormwater
127,750 542,679
71,475 41,336
1,563,938 1,599,108 Police Operations & Activities
22,678 Committed: General Government Capital 1,217,294 1,190,373 496,830 747,441 602,704 1,902,254 LEO Pension Obligation 328,296 344,103 Assigned: Subsequent Year's Expenditures (Appropriated)
2,823,000 Unassigned Fund Balance 10,265,046 $ 11,118,066 $ 11,680,455 $ 14,173,439 $ 15,257,586 $ 15,254,649 $ General Fund Expenditures 20,732,159 $ 22,345,251 $ 23,417,539 $ 24,564,304 $ 23,121,319 $ 25,741,841 $ Unassigned Fund Balance % of Expenditures 49.5% 49.8% 49.9% 57.7% 66.0% 59.3% Unassigned Fund Balance $ Above 45% Policy 935,574 $ 1,062,703 $ 1,142,562 $ 3,119,502 $ 4,852,992 $ 3,670,821 $ Source Notes: Exhibit 3 & Exhibit 4 *PO Rollover is included as part of the stabilization by state statute calculation and is shown separately for comparison TOWN OF MORRISVILLE GENERAL FUND BALANCE ANALYSIS As of June 30, 2017
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Budget to Actual - General Fund 2017 Final Budget 2017 Actual Amount Variance with Final Budget Positive (Negative) Percentage Collected or Spent Revenues 29,136,216 $ 30,265,152 $ $ 1,128,936 103.9% Expenditures 29,911,820 25,499,593 (4,412,227) 85.2% Transfers In (Out) (3,961,900) (3,961,900)
Other Financings sources (uses) Refunding bonds issued 5,108,556 5,108,556
Payment to refunding bond escrow agent (5,016,702) (5,016,701) 1 0.0% Claims/Settlements
Appropriated Fund Balance 4,645,650 $
$ (4,645,650) 0.0% Excess of Revenue and Other Sources over Expenditures and Other Uses
895,514 $ $ 895,514 Source Notes: Schedule 3 TOWN OF MORRISVILLE CHANGES IN FUND BALANCE DETAIL
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Budget to Actual - Fire Apparatus Capital Reserve Fund 2017 Final Budget 2017 Actual Amount Variance with Final Budget Positive (Negative) Revenues
5,000 $ $ 5,000 Expenditures
652,000 652,000
(652,000) $
$ 652,000 Excess of Revenue and Other Sources over Expenditures and Other Uses
657,000 $ $ 657,000 Source Notes: Schedule 4 Budget to Actual - Roadway and Transportation Capital Reserve Fund 2017 Final Budget 2017 Actual Amount Variance with Final Budget Positive (Negative) Revenues
1,753 $ $ 1,753 Expenditures
440,000 440,000
(440,000) $
$ 440,000 Excess of Revenue and Other Sources over Expenditures and Other Uses
441,753 $ $ 441,753 Source Notes: Schedule 5 TOWN OF MORRISVILLE CHANGES IN FUND BALANCE DETAIL
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Budget to Actual - CIP Capital Reserve Fund 2017 Final Budget 2017 Actual Amount Variance with Final Budget Positive (Negative) Revenues
797 $ $ 797 Expenditures
200,000 200,000
(200,000) $
$ 200,000 Excess of Revenue and Other Sources over Expenditures and Other Uses
200,797 $ $ 200,797 Source Notes: Schedule 6 Budget to Actual - Municipal Service District 2017 Final Budget 2017 Actual Amount Variance with Final Budget Positive (Negative) Revenues 93,700 $ 97,610 $ $ 3,910 Expenditures 420,882 242,248 (178,634) Transfers In (Out)
327,182 $
$ (327,182) Excess of Revenue and Other Sources over Expenditures and Other Uses
(144,638) $ $ (144,638) Source Notes: Schedule 7 TOWN OF MORRISVILLE CHANGES IN FUND BALANCE DETAIL
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FY 2017 Revenues: Budget Actual Increase (Decrease) Revenue Collected Ad Valorem Taxes 17,122,300 $ 17,523,436 $ $ 401,136 Other Taxes and Licenses 275,400 288,953 13,553 Sales Tax 4,741,000 4,983,950 242,950 Other Intergovernmental 4,325,276 4,002,343 (322,933) Permits and Fees 971,200 1,840,623 869,423 All Other Revenue 1,701,040 1,625,847 (75,193) Total 29,136,216 $ 30,265,152 $ $ 1,128,936 Source Note: Schedule 3 FY 2017 General Fund Expenses: PO Rollover Sidewalk Projects $ 437,010 One Solution 206,725 Transportation Plan Update 70,001 P&R Comprehensive Master Plan 65,065 DFI Town Center Core 38,001 Sign Ordinance Update 31,500 Website Redesign 22,430 Demolition of 611 Church St Property 19,850 Wake County Public Schools 18,230 UDO Text Amendments 18,160 GIS Consulting 14,500 Other Professional Services Items 78,986 Vehicles Replacements 28,544 Miscellaneous 38,246 1,087,248 $ Personnel Cost (Lapse Salaries/Health Care Savings) 1,495,389 Delayed Spending 545,000 259,000 206,000 100,000 227,000 Land Acquisition on Church Street Sidewalk Projects Rex Endowment Grant - Farmers Market Pedestrian Enhancement CAMPO Church Street Walking Loop Project Davis Drive Pedestrian Project 78,000 1,415,000 Debt Payments 54,913 Basic Operational Budget to Actual Savings/Variances 359.677 Budget to Actual Variance 4,412,227 $ TOWN OF MORRISVILLE
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Restated
2016 2017 Increase / Decrease from Previous Year Total Fund Balance (non General Fund) 4,340,428 $ 13,565,173 $ $ 9,224,745 Street Improvements (McCrimmon Parkway) (1,575,601) 6,144,511 7,720,112 Parkland Payment-in-Lieu (formerly Recreation facilities) 2,295,455 2,419,600 124,145 Church Street Park 677,968 698,427 20,459 Hatcher Creek Greenway 690,012 946,832 256,820 Morrisville-Carpenter Road 614,188 1,291,111 676,923 Northwest Park 326,018 15,858 (310,160) Fire Station 1 72,061 72,348 287 Town Center Core
352,340 Historic Christian Church Parking Lot Expansion
448,994 MAFC Renovation
(72,042) Shiloh Sewer 1,240,327 1,247,194 6,867 Source Notes: Schedule 8 Schedule 10 TOWN OF MORRISVILLE Other Fund Balance Analysis As of June 30, 2017
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Total Collections (since inception) $4,273,699 Project Expenditures Project Authorization Non-PIL Revenues Parkland PIL Indian Creek 1,477,723 435,863 1,041,860 (1,041,860) Shiloh Greenway 1,110,712
(1,110,712) NC54 Multi Use Path 249,040
(249,040) Northwest Park 1,733,903
(1,704,973) Hatcher Creek Greenway 5,921,390 5,623,194 298,196 (298,196) Church Street Park 6,470,511 5,387,464 1,083,047 (1,083,047) Transfer in from General Fund 1,842,517 Transfer in from Capital Reserve 1,684,257 Available Parkland Payment in Lieu 2,312,645 Investment Earnings 106,955 Fund Balance at June 30, 2017 2,419,600 For FY2017, a total of $298,196 was transferred to the Hatcher Creek Greenway Project. Source Notes: Schedule 11 TOWN OF MORRISVILLE PARKLAND PAYMENT-IN-LIEU As of June 30, 2017
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