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HomeMy WebLinkAboutTRI- County Planning Commission Audit 1 � TRI - COUNTY regional planning commission March 11, 2021 Mr. Chris Swope City Clerk, City of Lansing City Hall 124 W. Michigan Lansing, MI 48933 Dear Mr. Swope: In accordance with our Bylaws, we are submitting the audit report for the fiscal year 2020 for the Tri-County Regional Planning Commission. If you have any questions, please feel free to contact us. Sincerely, Greg Hoffman Finance Director Encl. Audit Ltr WWW.MITCRPC.ORG 3135 PINE TREE RD I SUITE 2C I LANSING, MI 48911 P: (517) 393-0342 1 F: (517) 393-4424 TRI-COUNTY REGIONAL PLANNING COMMISSION LANSING, MICHIGAN REPORT ON FINANCIAL STATEMENTS (with required and other supplementary information) YEAR ENDED SEPTEMBER 30, 2020 Maner Costerisan Certified Public Accounlanls Business&Technology Advisors TABLE OF CONTENTS Page INDEPENDENT AUDITOR'S REPORT.........................................................................................................................................1-2 MANAGEMENT'S DISCUSSION AND ANALYSIS........................................................................................................:...........3-6 BASIC FINANCIAL STATEMENTS...................................................................................................................................................7 Government-wide Financial Statements Statementof Net Position..........................................................................................................................................................8 Statementof Activities................................................................................................................................................................9 Governmental Fund Financial Statements BalanceSheet................................................................................................................................................................................10 Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position.......................11 Statement of Revenues,Expenditures,and Changes in Fund Balance.................................................................12 Reconciliation of the Statement of Revenues,Expenditures,and Changes in Fund Balance of the Governmental Fund to the Statement of Activities......................................................................13 Notesto Financial Statements................................................................................................................................................14-23 REQUIRED SUPPLEMENTARY INFORMATION......................................................................................................................24 General Fund BudgetaryComparison Schedule...............................................................................................................................................25-26 OTHER SUPPLEMENTARY INFORMATION..............................................................................................................................27 Schedule of Commission Revenues and Expenditures (Unaudited).........................................................................28 Combining Schedule of Project Revenues and Expenditures (Unaudited).........................................................29-32 Schedule of Project Revenues and Expenditures (Unaudited).................................................................................33-49 Analysis of Completed Projects (Unaudited)...................................................................................................................50-51 Analysis of Local Match (Unaudited)......................................................................................................................................52 Analysis of Indirect Cost Rate (Unaudited).........................................................................................................................53 Schedule of Fringe Benefits(Unaudited)..............................................................................................................................54 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTA UDITING STANDARDS.....................................................................................................................55-56 (,rwo.0 r Maner Costerisan PC ane2425 E.Grand River Ave. Suite 1 osterisan Lansins,MI 459 1 T.517 323 750 7500 Certified Public Accountants F.517 323 6346 Business&Technolosy Advisors www.manercpa.com INDEPENDENT AUDITOR'S REPORT To the Board of Commissioners Tri-County Regional Planning Commission Lansing,Michigan Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities and the major fund of Tri-County Regional Planning Commission (the Commission),as of and for the year ended September 30,2020, and the related notes to the financial statements,which collectively comprise the Commission's basic financial statements as listed in the table of contents. Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements,whether due to fraud or error. In making those risk assessments,the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 1 Opinions In our opinion,the financial statements referred to above present fairly,in all material respects,the respective financial position of the governmental activities and the major fund of the Tri-County Regional Planning Commission as of September 30, 2020,and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information, as identified in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries,the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Commission's basic financial statements. The accompanying other supplementary information,as identified in the table of contents,is presented for purposes of additional analysis and is not a required part of the financial statements. 'The accompanying other supplementary information has not been subjected to the auditing procedures applied in the audit of the basic financial statements,and accordingly,we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards,we have also issued our report dated January 15,2021, on our consideration of the Commission's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,regulations,contracts,and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Commission's internal control over financial reporting and compliance. M January 15,2021 2 TRI-COUNTY REGIONAL PLANNING COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS This is part of the Tri-County Regional Planning Commission (TCRPC) annual financial report. It presents discussion and analysis of the Commission's financial performance during the fiscal year that ended September 30,2020. Please read it in conjunction with the attached financial statements. Financial Highlights Our FY 2020 financial status decreased from the prior year. Net position increased by$44,902 compared to 2019 decrease of$6,803. Total Net Position is now$592,528 of which$6,637 represents capital assets. This net position will be used for operating cash-flow, match for federal funding that was not spent this year, future program shortfalls,and capital asset purchases. See Tables 1 and 2 below. Table 1 Summarized Statements of Net Position Governmental Activities Fiscal Year Fiscal Year 2020 2019 Current and other assets $ 1,160,703 $ 1,156,358 Capital assets,net 6,637 10,701 Total assets 1,167,340 1,167,059 Current liabilities 574,812 619,433 Investment in capital assets 6,637 10,701 Unrestricted 585,891 536,925 Total net position $ 592,528 $ 547,626 Table 2 Changes in Net Position Governmental Activities 2020 2019 Net position,October 1 $ 547,626 $ 554,428 Results of operations 39,376 (2,784) Prior period adjustments 5,526 (4,018) Total changes in net position 44,902 (6,802) Net position,September 30 $ 592,528 $ 547,626 For 2020 and 2019,overall revenues were$1,512,673 and$1,625,974,respectively,and overall expenses were $1,473,297 and$1,628,758 respectively,as reported in the statements of activities. 3 TRI-COUNTY REGIONAL PLANNING COMMISSION MANAGEMENT'S DISCUSSION AND ANALYSIS Fund Financial Statements The fund financial statements provide more detailed information about the Commission's fund. Funds are established to account for funding and spending of specific financial resources and to show proper expenditures of those resources. Tri-County Regional Planning Commission has the following Governmental fund: General Operating Fund-The Commission's activities are accounted for in the General Fund. This fund is presented on the modified accrual basis,which is designed to show short-term financial information. You will note that differences between the government wide statements and the fund statements are disclosed in the reconciling financial statements to explain the differences between them. Financial Analysis of the Commission as a Whole Net Position-The Commission's net position increased during the year ended September 30,2020,by$39,376. Total unrestricted net position was $592,528 at year end. The unrestricted net position will be used for operating cash-flow,future program shortfalls,and capital asset purchases. Liabilities- The Commission's liabilities decreased by$44,621. This was due to decreases in accounts payable and unearned revenue. Financial Analysis of the Commission's Fund Amendments to our budget for the year ended September 30,2020,were to add projects and cover changes in certain operational expenditures. General Fund Budgetary Highlights The Commission adopts an annual budget for the General Fund. A budgetary comparison statement has been provided as required supplementary information to demonstrate compliance with this budget. Federal source revenue, state source revenue, and local source revenue were$188,669, $180,987, and $9,527 lower than anticipated,respectively. The final expenditure budget increased from the original budget;the final budget was$405,19S greater than actual expenditures. Capital Assets The following is a summary of capital assets and the associated accumulated depreciation: Fiscal Year Fiscal Year 2020 2019 Furniture and equipment $ 196,220 $ 196,220 Less accumulated depreciation (189,583) (185,519) Net capital assets $ 6,637 $ 10,701 5 BASIC FINANCIAL STATEMENTS TRI-COUNTY REGIONAL PLANNING COMMISSION STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30,2020 Program Revenues Net(Expense) Operating Revenue and Grants and Changes in Functions/Programs Expenses Contributions Net Position Governmental activities Planning programs $ 1,473,297 $ 1,132,610 $ (340,687) General revenues Member allocations 363,334 Investment earnings 1,100 Miscellaneous 15,629 Total general revenues 380,063 Change in net position 39,376 Restated net position,beginning of the year 553,152 Net position,end of the year $ 592,528 See accompanying notes to financial statements. 9 TRI-COUNTY REGIONAL PLANNING COMMISSION RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET TO THE STATEMENT OF NET POSITION SEPTEMBER 30,2020 Total fund balance-governmental fund $ 585,891 Amounts reported for the governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in the governmental fund. The cost of capital assets is $ 196,220 Accumulated depreciation is (189,583) Capital assets,net 6,637 Net position of governmental activities $ 592,528 See accompanying notes to financial statements. 11 TRI-COUNTY REGIONAL PLANNING COMMISSION RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCE OF THE GOVERNMENTAL FUND TO THE STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30,2020 Net change in fund balance-governmental fund $ 43,440 Amounts reported for governmental activities in the statement of activities are different because: Capital outlays are reported as expenditures in the governmental fund. However,in the statement of activities,the cost of capital assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: Depreciation expense (4,064) Change in net position of governmental activities $ 39,376 See accompanying notes to financial statements. 13 TRI-COUNTY REGIONAL PLANNING COMMISSION NOTES TO FINANCIAL STATEMENTS NOTE 1-DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Basis of AccountinE Basis of accounting refers to the timing under which transactions are recognized for financial reporting purposes. Governmental fund financial statements use the modified accrual basis of accounting. The government-wide financial statements are prepared using the accrual basis of accounting. Under the accrual basis of accounting,revenue is recorded in the period in which it is earned,and expenses are recorded when incurred, regardless of the timing of related cash flows. Revenues for grants, entitlements,and donations are recognized when all eligibility requirements imposed by the provider have been met. Unearned revenue is recorded when resources are received by the Commission before it has legal claim to them,such as when grant monies are received prior to the incurrence of qualified expenses. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable"means the amount of the transaction can be determined and"available"means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The length of time used to define "available" for purposes of revenue recognition in the governmental fund financial statements is 60 days. Revenues susceptible to accrual include property taxes,state aid,and interest revenue. Other revenues are not susceptible to accrual because generally they are not measurable until received in cash. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt which are recorded when due. Resources are considered available if they are collected during the current fiscal year or soon enough afterward to be used in payment of current year liabilities. Unavailable revenues arise when potential revenue does not meet both the"measurable"and"available"criteria for recognition in the current period. Unavailable revenues also arise when the Commission receives resources before it has a legal claim to them. In subsequent periods,when both revenue recognition criteria are met,the liability for unavailable revenue is removed from the balance sheet and revenue is recognized. If/when both restricted and unrestricted resources are available for use,it is the Commission's practice to use restricted resources first,then unrestricted resources as they are needed. Budgets and Budgetary Accounting The overall budget is based upon individual projects and the general operating fund budgets. Budgeted amounts are as originally adopted, and may be amended by the Commission. Net individual budget amendments were not material in relation to the originally approved amounts. Budgets lapse at the end of the fiscal year. Capital Assets Capital assets are recorded(net of accumulated depreciation,if applicable)and are those assets with an initial individual cost of$50,000 for buildings and building improvements, $25,000 for land improvements, and $5,000 for all other assets and an estimated useful life of more than one year. All purchased capital assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated acquisition value on the date received. 15 TRI-COUNTY REGIONAL PLANNING COMMISSION NOTES TO FINANCIAL STATEMENTS NOTE 1-DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Deferred Outflows/Inflows of Resources In addition to assets, the statement of net position and the balance sheet, when applicable, will report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position/fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until that time. In addition to liabilities,the statement of net position and the balance sheet,when applicable,will report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position/fund balance that applies to a future period and so will not be recognized as an inflow of resources (revenue)until that time. Currently, the Commission does not report any deferred outflows of resources or deferred inflows of resources. Compensated Absences Accumulated unpaid vacation benefit obligations are accrued when incurred; as such obligations are expected to be paid within the ensuing year. For governmental funds, the cost of accumulated vacation along with the related payroll taxes expected to be paid with current expendable resources is recorded as a fund liability. Fund Balance Classification Fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The following are the five classifications of fund balance under this standard: Nonspendable - assets that are not available in a spendable form such as inventory, prepaid expenditures, and long-term receivables not expected to be converted to cash in the near term. It also includes funds that are legally or contractually required to be maintained intact such as the corpus of a permanent fund or foundation. Restricted-amounts that are required by external parties to be used for a specific purpose. Constraints are externally imposed by creditors,grantors,contributors or laws,regulations or enabling legislation. Committed-amounts constrained on use imposed by formal action of the government's highest level of decision-making authority(i.e.,Board,Council,etc.). Assigned-amounts intended to be used for specific purposes. This is determined by the governing body, the budget or finance committee or a delegated municipality official. Unassigned - all other resources; the remaining fund balance after nonspendable, restrictions, commitments,and assignments. This class only occurs in the General Fund,except for cases of negative fund balances. Negative fund balances are always reported as unassigned, no matter which fund the deficit occurs in. 17 TRI-COUNTY REGIONAL PLANNING COMMISSION NOTES TO FINANCIAL STATEMENTS NOTE 2-DEPOSITS AND INVESTMENTS Interest Rate Risk In accordance with its investment policy,the Commission will minimize interest rate risk,which is the risk that the market value of securities in the portfolio will fall due to changes in the market interest rates by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and by investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools and limiting the average maturity of the portfolio in accordance with this policy. Credit Risk State law limits investments in commercial paper and corporate bonds to a prime or better rating issued by nationally recognized statistical rating organizations (NRSROs). Obligations of the U.S. government or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk and do not require disclosure of credit quality. As of September 30,2020,the Commission did not hold any investments that were subject to rating. Concentration of Credit Risk The Commission will minimize concentration of credit risk, which is the risk of loss attributed to the magnitude of the Commission's investment in a single issuer,by diversifying the investment portfolio so that the impact of potential losses from any one type of security or from any one individual issuer will be minimized. Foreign Currency Risk The Commission is not authorized for investments which have this type of risk. The following summarizes the categorization of these amounts as of September 30,2020: Cash $ 837,981 Investments 150,000 $ 987,981 19 TRI-COUNTY REGIONAL PLANNING COMMISSION NOTES TO FINANCIAL STATEMENTS NOTE 6-RETIREMENT PLAN The Commission provides pension benefits for all non-temporary employees through a defined contribution plan,which was established by the Board of Commissioners and may be amended from time to time bythe Board. This plan is administered by the Michigan Municipal Employees Retirement System. In a defined contribution plan,benefits depend solely on amounts contributed to the plan plus investment earnings. The Commission's contributions are vested at a graded rate based on year of service. Years of Vesting Service Percentage 1 0 % 2 20 3 40 4 60 5 80 6 100 The employer is required to contribute 9% of all covered payroll. Required contributions to the plan were $66,918,covered payroll was$742,325,and total payroll was$743,532 during the fiscal year. Contributions to the plan during the fiscal year were$66,918. NOTE 7-CONTINGENT LIABILITIES Under the terms of various Federal and State grants,periodic compliance audits are required,and certain costs may be questioned, allowed, or disallowed, which could result in funds being returned and/or received from grantor agencies. NOTE 8-ECONOMIC DEPENDENCY The Commission receives substantially all of its support from federal,state,and local governments. A significant reduction in the level of this support,if this were to occur,could have an effect on the Commission's activities. NOTE 9-LEASE COMMITMENTS The Commission leases office space. The original lease term began November 1, 2011 and was for 123 months. Rental expense for the year ended September 30,2020,was$56,600. Future minimum payments areas follows: Year Ending September 30, 2021 $ 57,628 2022 19,324 $ 76,952 21 TRI-COUNTY REGIONAL PLANNING COMMISSION NOTES TO FINANCIAL STATEMENTS NOTE 12-UPCOMING ACCOUNTING PRONOUNCEMENTS(continued) In May 2020, GASB issued Statement No. 96, Subscription-based Information Technology Arrangements. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset - an intangible asset - and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments,including implementation costs of a SBITA;and (4) requires note disclosures regarding a SBITA. To the extent relevant,the standards for SBITAs are based on the standards established in Statement No.87,Leases, as amended. The Commission is currently evaluating the impact this standard will have on the financial statements when adopted during the 2022-2023 fiscal year. NOTE 13-UNCERTAINTIES The extent of the impact of COVID-19 on the Commission's operational and financial performance will depend on certain developments,including the duration and spread of the outbreak,impact on services,employees,and vendors all of which are uncertain and cannot be predicted. At this point, the extent to which COVID-19 may impact the financial condition and results of operations is uncertain. 23 REQUIRED SUPPLEMENTARY INFORMATION 24 TRI-COUNTY REGIONAL PLANNING COMMISSION GENERALFUND BUDGETARY COMPARISON SCHEDULE(continued) YEAR ENDED SEPTEMBER 30,2020 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) EXPENDITURES(continued) Current(continued) Community and economic development (continued) Special projects $ 17,500 $ 27,500 $ 18,739 $ 8,761 Consultant fee/contractual services 64,342 89,073 7,500 81,573 Furniture/equipment purchases 15,000 15,000 7,968 7,032 Pass-through 313,005 313,005 201,592 111,413 TOTAL EXPENDITURES 1,849,697 1,874,428 1,469,233 405,195 EXCESS OF REVENUES OVER EXPENDITURES - - 43,440 43,440 OTHER FINANCING SOURCES (USES) Operating transfers for local match 244,301 244,301 192,707 (51,594) Transfer for local match (244,301) (244,301) (192,707) 51,594 TOTAL OTHER FINANCING SOURCES (USES) - - - - NET CHANGE IN FUND BALANCE - - 43,440 43,440 Restated fund balance,beginning of year 542,451 542,451 542,451 - Fund balance,end of year $ 542,451 $ 542,451 $ 585,891 $ 43,440 26 OTHER SUPPLEMENTARY INFORMATION 27 TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF COMMISSION REVENUES AND EXPENDITURES(UNAUDITED) YEAR ENDED SEPTEMBER 30,2020 Special Projects Operating Indirect Direct Total Eliminations Total REVENUES Federal sources $ $ $ 670,863 $ 670,863 $ $ 670,863 State sources 97,265 97,26S 97,265 Local sources 364,482 364,482 364,482 Member allocations 363,334 - - 363,334 Interest 1,100 - - 1,100 Operating transfers in local match - 192,707 192,707 (192,707) - Other 19,693 - - (4,064) 15,629 TOTAL REVENUES 384,127 1,325,317 1,325,317 (196,771) 1,512,673 EXPENDITURES Direct costs Salaries and wages 60,633 147,737 541,739 689,476 750,109 Fringe benefits 32,923 52,821 193,691 246,512 279,435 Telephone 71 8,310 195 8,505 8,576 Postage - S87 - 587 587 Printing and copying 432 250 1,662 1,912 2,344 Office supplies - 8,614 201 8,815 8,815 Travel-in region 555 2,041 6,787 8,828 9,383 Travel-out region - 709 5,390 6,099 6,099 Training - 1,733 95 1,828 1,828 Commission meeting expenses 1,611 - - - 1,611 Rent-office - 68,246 - 68,246 68,246 Computer services 27,766 3,196 30,962 30,962 Computer software 17,910 20,548 38,458 38,458 Insurance 6,093 - 6,093 6,093 Bank service charges 1,33S - - 1,335 Subscriptions/publications - 397 - 397 397 Advertising 2,072 563 306 869 2,941 Depreciation - 4,064 - 4,064 (4,064) - Membership dues - 3,361 2,854 6,215 6,215 Special projects 4,974 659 13,106 13,765 18,739 Consultant fee/contractual services - - 7,S00 7,S00 7,500 Equipment 5,448 - 2,520 2,520 7,968 Audit - 10,000 - 10,000 10,000 Pass-through - - 201,592 201,592 201,592 Transfer for match 192,707 - - (192,707) - Indirect costs 37,926 (361,861) 323,935 (37,926) TOTAL EXPENDITURES 340,687 1,325,317 1,325,317 (196,771) 1,469,233 NET REVENUES OVER EXPENDITURES $ 43,440 $ $ - $ $ - $ 43,440 28 MID-MICHIGAN MID-MICHIGAN I REGIONAL REGIONAL WATER WATER WELLHEAD PROSPERITY PROSPERITY AUTHORITY AUTHORITY PROTECTION GRANT2018 GRANT2019 2018 2019 GRANT (31340) (31350) (30700) (30800) (30500) S = 26,074 697 526 45,000 C26,074 697 526 45,000 C� J 26,074 697 526 45,000 L - 363 269 - 129 96 C L 6 26,074 - - 45,000 - 205 155 26,074 697 526 45,000 L �J L 30 L. SURFACE TRANSPORTATI MDOT GRANT: REGIONAL ON STATE ASSET TRANSPORTATION PROGRAM PLANNING AND MANAGEMENT CONTRACT GRANT RESEARCH (32300) (32400) (32800) (34000) TOTAL $ - $ - $ 27,932 $ 16,146 $ 670,863 27,054 40,100 - 4,037 97,265 - - - - 364,482 27,054 40,100 27,932 20,183 1,132,610 - - 6,194 - 192,707 27,054 40,100 34,126 20,183 1,325,317 10,857 20,828 15,945 10,482 541,739 3,882 7,446 5,701 3,748 193,691 - - - - 195 - 1,662 129 - 201 3,446 30 6,787 55 - 5,390 - - 95 161 3,196 2,203 20,548 - 306 - 21 2,854 - 13,106 7,500 - 2,520 1,958 - - - 201,592 6,727 11,826 10,065 5,953 323,935 27,054 40,100 34,126 20,183 1,325,317 32 TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED) GREATER LANSING REGIONAL COMMITTEE (GLRC) 2020 PROJECT PERIOD JANUARY 1,2020 TO SEPTEMBER 30,2020 VARIOUS MUNICIPALITIES-Cash(30310) JANUARY 1, 2020 THROUGH SEPTEMBER 30, 2020 REVENUES Local Cash Received $ 132,875 Unearned revenue-current year (65,919) TOTAL REVENUES $ .66,956 EXPENDITURES Salaries $ 32,048 Fringe Benefits 11,458 Printing and Copying 212 Travel In-Region 197 Travel Out-Region 199 Computer Services 70 Membership Dues 77 Special Projects 4,180 Indirect Costs 18,515 TOTAL EXPENDITURES $ 66,956 34 TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED) GROUNDWATER MANAGEMENT BOARD (GMB)2020 PROJECT PERIOD OCTOBER 1,2019 TO SEPTEMBER 30,2020 VARIOUS MUNICIPALITIES-Cash(30400) REVENUES Local Cash Received $ 96,300 Unearned Revenue-prior year 166,919 Unearned Revenue-current year (165,610) TOTAL REVENUES $ 97,609 EXPENDITURES Salaries $ 48,002 Fringe Benefits 17,163 Telephone 15 Printing and Copying 112 Travel In-Region 301 Computer Services 500 Membership Dues 224 Special Projects 3,551 Indirect Costs 27,741 TOTAL EXPENDITURES $ 97,609 36 TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED) REGIONAL PROSPERITY GRANT FY 2019 PROJECT PERIOD MARCH 1,2019 THROUGH FEBRUARY 28,2021 MARCH 1, OCTOBER 1, MARCH 1, 2019 2019 2019 THROUGH THROUGH THROUGH SEPTEMBER 30, SEPTEMBER 30, FEBRUARY 28, 2019 2020 2021 REVENUES State of Michigan Cash Received $ 306,810 $ - $ 306,810 Unearned Revenue-prior year (146,073) 146,073 - Unearned Revenue-current year - (119,999) (119,999) TOTAL REVENUES $ 160,737 $ 26,074 $ 186,811 EXPENDITURES Salaries $ 960 $ - $ 960 Fringe Benefits 368 - 368 Travel In-Region 22 - 22 Pass Thru 158,857 26,074 184,931 Indirect Costs 530 - 530 TOTAL EXPENDITURES $ 160,737 $ 26,074 $ 186,811 38 TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED) MID-MICHIGAN WATER AUTHORITY 2020 PROJECT PERIOD JANUARY 1,2020 THROUGH SEPTEMBER 30,2020 VARIOUS MUNICIPALITIES-Cash (30800) JANUARY 1, 2020 THROUGH SEPTEMBER 30, 2020 REVENUES Local Accounts Receivable $ 526 EXPENDITURES Salaries $ 269 Fringe Benefits 96 Travel In-Region 6 Indirect Costs 155 TOTAL EXPENDITURES $ 526 40 TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED) AERIAL ORTHOIMAGERY PROJECT PERIOD JULY 1,2020 THROUGH FEBRUARY 28,2021 VARIOUS MUNICIPALITIES-Cash (31200) JULY 1,2020 THROUGH SEPTEMBER 30, 2020 REVENUES Local Cash Received $ 158,489 Unearned revenue (29,929) TOTAL REVENUES $ 128,560 EXPENDITURES Pass Thru $ 128,560 42 TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED) EDA PLANNING GRANT PROJECT PERIOD JULY 1,2019 THROUGH SEPTEMBER 30,2022 EDA GRANT NO.ED19CHI3020026 (31500) EDA$210,000 Cash TCRPC$210,000 Cash JULY 1, OCTOBER 1, JULY 1, 2019 2019 2019 _ THROUGH THROUGH THROUGH SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2019 2020 2020 REVENUES Federal grant Cash Received $ 17,500 $ 59,503 $ 77,003 Accounts Receivable - 104 104 Unearned Revenue (1,459) 1,459 - TOTAL REVENUES 16,041 61,066 77,107 OTHER FINANCING SOURCES Operating transfers in Local Match 16,035 61,066 77,101 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 32,076 $ 122,132 $ 154,208 _ EXPENDITURES Salaries $ 14,204 $ 61,666 $ 75,870 Fringe Benefits 5,446 22,048 27,494 Telephone 30 110 140 Printing and Copying 51 124 175 Office Supplies 173 45 218 Travel In-Region 132 994 1,126 Travel Out-Region 2,891 819 3,710 Membership Dues 95 - 95 Special Projects - 305 305 Indirect Costs 9,054 36,021 45,075 TOTAL EXPENDITURES $ 32,076 $ 122,132 $ 154,208 44 TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED) MDOT GRANT:ASSET MANAGEMENT PROJECT PERIOD OCTOBER 1,2019 THROUGH JUNE 30,2021 MDOT CONTRACT NO. 2018-0022/Z9/Rl (32300) MDOT $40,000 Cash REVENUES State of Michigan Cash Received $ 18,343 Accounts Receivable 8,711 TOTAL REVENUES $ 27,054 EXPENDITURES Salaries $ 10,857 Fringe Benefits 3,882 Office Supplies 129 f Travel In-Region 3,446 Travel Out-Region 55 Pass Through 1,958 Indirect Costs 6,727 TOTAL EXPENDITURES $ 27,054 L L L � l 46 J TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED) SURFACE TRANSPORTATION PROGRAM GRANT PROJECT PERIOD OCTOBER 1,2019 THROUGH SEPTEMBER 30,2020 FHWA CONTRACTS 2018-0011/Z5 (32800) FHWA $102,313 Cash TCRPC $22,688 Cash REVENUES Federal grant Cash Received $ 20,577 Accounts Receivable 7,355 TOTAL REVENUES 27,932 OTHER FINANCING SOURCES Operating transfers in Local Match 6,194 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 34,126 EXPENDITURES _ Salaries $ 15,945 Fringe Benefits 5,701 Office Supplies - Travel In-Region 30 Travel Out-Region - _ Computer Services 161 Computer Software 2,203 Advertising 21 Consultants - Indirect Costs 10,065 TOTAL EXPENDITURES $ 34,126 48 TRI-COUNTY REGIONAL PLANNING COMMISSION SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED) STATEWIDE PLANNING AND RESEARCH PROJECT PERIOD OCTOBER 1,2019 THROUGH SEPTEMBER 30,2020 MDOT CONTRACT NO. 2018-0022/Z8 (34000) MDOT $16,000 Cash REVENUES Federal grant Cash Received $ 13,216 Accounts Receivable 2,930 State of Michigan Cash Received 2,930 Accounts Receivable 1,107 TOTAL REVENUES $ 20,183 EXPENDITURES Salaries $ 10,482 Fringe Benefits 3,748 Indirect Costs 5,953 TOTAL EXPENDITURES $ 20,183 49 STATEWIDE WELLHEAD REGIONAL PLANNING PROTECTION AERIAL FHWA PL TRANSPORTATION AND GRANT ORTHOIMAGERY FUNDS CONTRACT STPGRANT RESEARCH (30500) (31200) (32100) (32400) (32800) (34000) $ 45,000 $ 128,560 $ 691,166 $ 40,100 $ 34,126 $ 20,183 45,000 128,560 125,447 - 6,194 - - 565,719 40,100 27,932 20,183 0% 0% 82% 100% 82% 100% - - 565,719 40,100 27,932 20,183 - 441,221 33,760 20,577 16,146 124,498 $ 6,340 $ 7,355 $ 4,037 51 TRI-COUNTY REGIONAL PLANNING COMMISSION ANALYSIS OF INDIRECT COST RATE (UNAUDITED) YEAR ENDED SEPTEMBER 30,2020 Indirect Base Indirect Costs Total expenditures $ - $ 1,661,940 Direct expenditures 1,300,079 (1,300,079) Less: Special projects (18,739) - Consultant fee/contractual services (7,500) - Pension contributions-forfeitures (11,246) Furniture/equipment (7,968) - Pass thru (201,592) - Transfer for match (192,707) - $ 860,327 $ 361,861 Indirect cost rate (indirect costs as a part of indirect base) 42.06% 53 (0)We aner Maner d River i PC 2425 E.Grand Rivert Ave. Suite I osterisan Lansins,MI43937501 T:517 323 7500 Cerlified Public Accountants F.517 323 6346 Business&7echnolotiq Advisors www.manercpa.com INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENTAUDITINGSTANDARDS To the Board of Commissioners Tri-County Regional Planning Commission Lansing,Michigan We have audited,in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States,the financial statements of the governmental activities and the major fund of Tri-County Regional Planning Commission(the Commission),as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements and have issued our report thereon dated January 15,2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Commission's internal control over financial reporting(internal control)to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Accordingly,we do not express an opinion on the effectiveness of the Commission's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency,or a combination of deficiencies,in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,or a combination of deficiencies,in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations,during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However,material weaknesses may exist that have not been identified. 55 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit,and accordingly,we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Govern men tAuditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing,and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly,this communication is not suitable for any other purpose. January 15,2021 56