HomeMy WebLinkAboutTRI- Count Reg Panning Commission FY 2019 Audit 1 �
TRI - COUNTY
regional planning commission
March 12, 2020
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
2019 for the Tri-County Regional Planning Commission.
If you have any questions, please feel free to contact us.
Sincerely,
Greg Hoffm
, i
Finance Director
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Rom; d
Encl.
AUDIT LTR
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W.MITCRPC.ORC
3135 PINE TREE RD 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, 2019
(ew M a n e r
Costerisan
Certified Public Accountants
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................................................................................................................................................14-22
REQUIRED SUPPLEMENTARY INFORMATION......................................................................................................................23
General Fund
BudgetaryComparison Schedule...............................................................................................................................................24-25
OTHER SUPPLEMENTARY INFORMATION..............................................................................................................................26
Schedule of Commission Revenues and Expenditures (Unaudited).........................................................................27
Combining Schedule of Project Revenues and Expenditures (Unaudited).........................................................28-31
Schedule of Project Revenues and Expenditures (Unaudited).................................................................................32-47
Analysis of Completed Projects (Unaudited)...................................................................................................................48-49
Analysis of Local Match (Unaudited)......................................................................................................................................50
Analysis of Indirect Cost Rate (Unaudited) .........................................................................................................................51
Schedule of Fringe Benefits (Unaudited)..............................................................................................................................52
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 GOVERNMENT AUDITING STANDARDS...................................................................................................................53-55
(0 ep.� aner Maner Costerisan PC
2425 E.Grand River Ave.
Suite 1
osterisan Lansing,M1 439 1
T:517 323 750 7500
Certified Public Accountants F.517 323 6346
Business&Technology 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, 2019,
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 GovernmentAuditing 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 30,2019, 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 24, 2020, 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.
January 24,2020
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
30,2019. Please read it in conjunction with the attached financial statements.
Financial Highlights
Our FY 2019 financial status decreased from the prior year. Net position decreased by$6,803 compared to 2018
decrease of$51,823. Total Net Position is now$547,625 of which $10,700 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
2019 2018
Current assets $ 1,006,358 $ 903,184
Capital assets,net 10,701 14,697
Noncurrent assets 150,000 150,000
Total assets 1,167,059 1,067,881
Current liabilities 619,433 513,453
Investment in capital assets 10,701 14,697
Unrestricted 536,925 539,731
Total net position $ 547,626 $ 554,428
Table 2
Changes in Net Position
Governmental Activities
2019 2018
Net position, October 1 $ 554,428 $ 606,251
Results of operations (2,784) (53,478)
Prior period adjustments (4,018) 1,655
Total changes in net position (6,802) (51,823)
Net position, September 30 $ 547,626 $ 554,428
For 2019 and 2018,overall revenues were$1,624,774 and $1,518,545,respectively,and overall expenses were
$1,628,759 and$1,572,023,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 decreased during the year ended September 30, 2019,by$6,803.
Total unrestricted net position was $536,925 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 increased by$105,980. This was due to increases in accounts payable
and unearned revenue.
Financial Analysis of the Commission's Fund
Amendments to our budget for the year ended September 30, 2019,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 $69,842, $4,284, and $70,093
lower than anticipated,respectively. The final expenditure budget decreased from the original budget;the final
budget was$173,145 greater than actual expenditures.
Capital Assets
The following is a summary of capital assets and the associated accumulated depreciation:
Fiscal Year Fiscal Year
2019 2018
Furniture and equipment $ 196,220 $ 196,220
Less: Accumulated depreciation (185,519) (181,523)
Net capital assets $ 10,701 $ 14,697
5
BASIC FINANCIAL STATEMENTS
TRI-COUNTY REGIONAL PLANNING COMMISSION
STATEMENT OF ACTIVITIES
YEAR ENDED SEPTEMBER 30, 2019
Program
Revenues Net(Expense)
Operating Revenue and
Grants and Changes in
Functions/Programs Expenses Contributions Net Position
Governmental activities
Planning programs $ 1,628,758 $ 1,261,063 $ (367,695)
General revenues
Member allocations 363,334
Investment earnings 1,141
Miscellaneous 436
Total general revenues 364,911
Change in net position (2,784)
Restated net position,beginning of the year 550,410
Net position,end of the year $ 547,626
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 30,2019
Total fund balance-governmental fund $ 536,925
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 (185,519)
Capital assets,net 10,701
Net position of governmental activities $ 547,626
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 30,2019
Net change in fund balance-governmental fund $ 1,212
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 (3,996)
Change in net position of governmental activities $ (2,784)
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 sixty(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)
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.
Fund Balance Classification Policies and Procedures
For committed fund balance, the Commission's highest level of decision-making authority is the Board of
Commissioners. The formal action that is required to be taken to establish,modify,or rescind a fund balance
commitment is a resolution by the Board of Commissioners.
For assigned fund balance,the Commission has not approved a policy indicating who is authorized to assign
amounts to a specific purpose. As a result,this authority is retained with the Board of Commissioners.
Comparative Data
Comparative data for the prior year has not been presented in the accompanying financial statements since
their inclusion would make the statements unduly complex and difficult to read.
NOTE 2 -DEPOSITS
In accordance with Michigan Compiled Laws,the Commission is authorized to invest in the following investment
vehicles:
a. Bonds,securities,and other obligations of the United States or an agency or instrumentality of the United
States.
17
TRI-COUNTY REGIONAL PLANNING COMMISSION
NOTES TO FINANCIAL STATEMENTS
NOTE 2 -DEPOSITS(continued)
Custodial Credit Risk
The Commission will minimize custodial credit risk, which is the risk of loss due to the failure of the security
issuer or backer by diversifying its investments by security type and institution to ensure that potential losses
on individual securities do not exceed the income generated from the remainder of the portfolio,by limiting the
investment types to savings accounts and certificates of deposit,and by pre-qualifying the financial institutions,
brokers/dealers,intermediaries and advisers.
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.
Interest Rate Risk
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.
NOTE 3 -DUE FROM OTHER GOVERNMENTAL UNITS
Due from other governmental units at September 30,2019,by grant type are as follows:
Federal
FHWA PL Funds 2018-0011/Z3 $ 155,406
STP funds 2018-0011/Z11/R2 11,559
EDA Planning Grant EDA GRANT NO. 06-83-05565 (15,469)
Michigan Department of Transportation
Regional Transportation Contract 2018-0011/Z1 17,457
State Planning and Research MDOT/FHWA 2018-0022/Z5 2,022
MDOT Grant: MDOT CONTRACT NO. 2018-0022/Z3/R1 24,057
Mid-Michigan Water Authority 2,301
Other Local Units 77,564
$ 274,897
19
TRI-COUNTY REGIONAL PLANNING COMMISSION
NOTES TO FINANCIAL STATEMENTS
NOTE 6 -RETIREMENT PLAN (continued)
The employer is required to contribute 9% of all covered payroll. Required contributions to the plan were
$65,590,covered payroll was$732,062,and total payroll was$738,378 during the fiscal year. Contributions to
the plan during the fiscal year were$65,590.
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 30,2019,was$55,576. Future minimum payments are as follows:
Year Ending
September 30,
2020 $ 56,600
2021 57,628
2022 19,324
$ 133,552
NOTE 10-RISK MANAGEMENT
The Commission participates in the Michigan Township Participating Plan (the Plan),with other municipalities
for property, liability, auto, crime, public official wrongful acts, boiler and machinery, inland marina, and EDP
losses. The Plan is organized under Public Act 138 of 1982,as amended. The Plan,while it operates under the
Michigan Legislation of Public.Act 138,does not operate as a risk pool due to the transfer of risk to U.S.Specialty
Insurance Company ("USSIC") backing the Michigan Township Participating Plan under a master policy for the
period July 1, 2011 to July 1, 2019. Due to the Master Policy purchase, there is no pooling of risk between
members, but is instead considered commercial insurance. Settled claims relating to this insurance have not
exceeded the amount of insurance coverage in any of the past three years.
The Commission carries commercial insurance for the risk of loss due to workers'compensation claims. Settled
claims relating to commercial insurance have not exceeded the amount of insurance coverage in any of the past
three fiscal years.
21
REQUIRED SUPPLEMENTARY INFORMATION
23
TRI-COUNTY REGIONAL PLANNING COMMISSION
GENERAL FUND
BUDGETARY COMPARISON SCHEDULE (continued)
YEAR ENDED SEPTEMBER 30,2019
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
EXPENDITURES (continued)
Current(continued)
Community and economic development
(continued)
Special projects $ 24,350 $ 54,350 $ 53,815 $ 535
Consultant fee/contractual services 40,000 40,000 23,700 16,300
Furniture/equipment purchases 35,000 35,000 17,001 17,999
Pass-through 270,000 265,000 268,495 (3,495)
TOTAL EXPENDITURES 1,914,577 1,797,906 1,624,762 173,144
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (20,000) (9,104) 1,212 10,316
OTHER FINANCING SOURCES (USES)
Operating transfers for local match 233,654 217,375 232,788 15,413
Transfer for local match (233,654) (217,375) (232,788) (15,413)
TOTAL OTHER FINANCING
SOURCES (USES) - - - -
NET CHANGE IN FUND BALANCE (20,000) (9,104) 1,212 10,316
Restated fund balance,beginning of year 535,713 535,713 535,713 -
Fund balance,end of year $ 515,713 $ 526,609 $ 536,925 $ 10,316
25
OTHER SUPPLEMENTARY INFORMATION
26
TRI-COUNTY REGIONAL PLANNING COMMISSION
SCHEDULE OF COMMISSION REVENUES AND EXPENDITURES(UNAUDITED)
YEAR ENDED SEPTEMBER 30,2019
Special Projects
Operating Indirect Direct Total Eliminations Total
REVENUES
Federal sources $ $ $ 706,121 $ 706,121 $ $ 706,121
State sources 327,964 327,964 327,964
Local sources 226,978 226,978 226,978
Member allocations 363,334 - 363,334
Interest 1,141 - - 1,141
Operating transfers in local match - 232,788 232,788 (232,788) -
Other 4,240 192 192 (3,996) 436
TOTAL REVENUES 368,715 1,494,043 1,494,043 (236,784) 1,625,974
EXPENDITURES
Direct costs
Salaries and wages 56,931 137,817 543,630 681,447 738,378
Fringe benefits 21,829 52,842 208,440 261,282 283,111
Discretionary funds 2,435 - - - 2,435
Telephone - 3,785 415 4,200 4,200
Postage 89 763 141 904 993
Printing and copying 1,579 1,434 3,826 5,260 6,839
Office supplies 1,646 7,713 3,270 10,983 12,629
Graphic supplies - 215 - 215 215
Travel-in region 1,455 3,493 16,289 19,782 21,237
Travel-out region 409 1,120 26,598 27,718 28,127
Rent of facility - - - - -
Training 528 550 1,07E 1,078
Commission meeting expenses 2,151 - - - 2,151
Commission travel -
Rent-meeting facility - -
Rent-office 68,486 68,4B6 68,486
Equipment maintenance - - - - -
Computer services 391 26,834 2,642 29,476 29,867
Computer software - 19,832 12,179 32,011 32,011
Insurance - 6,380 - 6,380 6,380
Bank service charges 1,346 - - - 1,346
Subscriptions/publications - 457 171 628 628
Advertising 351 3,390 500 3,890 4,241
Depreciation 3,996 - 3,996 (3,996) -
Membership dues 4,800 3,499 8,299 8,299
Special projects 5,008 48,807 53,815 53,815
Consultant fee/contractual services - - 23,700 23,700 23,700
Equipment 9,428 - 7,573 7,573 17,001
Audit - 9,100 - 9,100 9,100
Pass-through - - 268,495 268,495 268,495
Transfer for match 232,788 - - (232,788) -
Indirect costs 34,675 (357,993) 323,318 (34,675) -
TOTAL EXPENDITURES 367,503 1,494,043 1,494,043 (236,784) 1,624,762
NET REVENUES OVER
(UNDER)EXPENDITURES $ 1,212 $ $ - $ - $ - $ 1,212
27
GROUNDWATER MID-MICHIGAN MID-MICHIGAN
MANAGEMENT REGIONAL REGIONAL WATER WATER
BOARD PROSPERITY PROSPERITY AUTHORITY AUTHORITY
(GMB) 2019 GRANT 2018 GRANT 2019 2018 2019
(30400) (31340) (31350) (30700) (30800)
- 83,500 160,737 - -
45,519 - - 835 891
192 - - - -
45,711 83,500 160,737 835 891
45,711 83,500 160,737 835 891
20,815 - 960 433 462
7,981 - 368 166 177
20 - - - -
1,143 - -
98 22 -
1,000
472 -
293 -
1,237 - -
138 83,500 158,857 - -
12,514 - 530 236 252
45,711 83,500 160,737 835 891
29
SURFACE
REGIONAL TRANSPORTATION STATE
TRANSPORTATION PROGRAM PLANNINGAND
CONTRACT GRANT RESEARCH
(32400) (32800) (34000) TOTAL
$ - $ 43,805 $ 16,516 $ 706,121
40,082 - 3,662 327,964
- - 226,978
- - 192
40,082 43,805 20,178 1,261,200
- 9,714 - 232,788
40,082 53,519 20,178 1,493,988
20,795 23,366 10,469 543,630
7,973 8,959 4,014 208,440
- - 415
- - 141
- - - 3,826
35 - 3,270
187 - 16,289
401 - 26,598
- - 550
130 - 2,642
3,579 - 12,179
- - 171
- - 500
82 - 3,499
- 48,807
2,333 - 23,700
- - - 7,573
- - - 268,495
11,314 14,447 5,695 323,318
40,082 53,519 20,178 1,494,043
31
TRI-COUNTY REGIONAL PLANNING COMMISSION
SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED)
GREATER LANSING AREA CLEAN CITIES
PROJECT PERIOD FEBRUARY 1, 2017 TO SEPTEMBER 30, 2019
FEBRUARY 1, OCTOBER 1, FEBRUARY 1,
2017 2018 2017
THROUGH THROUGH THROUGH
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2018 2019 2019
REVENUES
Local
Cash Received $ 34,879 $ 8,677 $ 43,556
Accounts Receivable 58,473 47,522 105,995
TOTAL REVENUES $ 93,352 $ 56,199 $ 149,551
EXPENDITURES
Salaries $ 41,211 $ 25,178 $ 66,389
Fringe Benefits 17,611 9,654 27,265
Telephone 341 175 516
Printing and Copying 77 39 116
Office Supplies 60 151 211
Travel In-Region 1,503 434 1,937
Travel Out-Region 4,853 4,561 9,414
Training 1,959 - 1,959
Computer Services 29 144 173
Indirect Costs 25,708 15,863 41,571
TOTAL EXPENDITURES $ 93,352 $ 56,199 $ 149,551
33
TRI-COUNTY REGIONAL PLANNING COMMISSION
SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED)
GREATER LANSNG REGIONAL COMMITTEE (GLRC) 2018
PROJECT PERIOD JANUARY 1,2018 TO DECEMBER 31, 2018
VARIOUS MUNICIPALITIES -Cash (30310)
JANUARY 1, OCTOBER 1, JANUARY 1,
2018 2018 2018
THROUGH THROUGH THROUGH
SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
2018 2018 2018
REVENUES
Local
Cash Received $ 169,096 $ - $ 169,096
Unearned Revenue-prior year (77,589) 77,589 -
Unearned Revenue- current year - (47,905) (47,905)
TOTAL REVENUES $ 91,507 $ 29,684 $ 121,191
EXPENDITURES
Salaries $ 31,756 $ 14,053 $ 45,809
Fringe Benefits 12,867 5,389 18,256
Postage - 102 102
Printing and Copying 267 229 496
Office Supplies 34 52 86
Travel In-Region 848 295 1,143
Travel Out-Region 60 - 60
Computer Services 38 80 118
Membership Dues 70 - 262
Special Projects 4,625 1,320 5,945
Special Projects -Survey Cost 25,000 220 25,220
Indirect Costs 15,942 7,944 23,886
TOTAL EXPENDITURES $ 91,507 $ 29,684 $ 121,191
35
TRI-COUNTY REGIONAL PLANNING COMMISSION
SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED)
REGIONAL PROSPERITY GRANT FY 2018
PROJECT PERIOD MARCH 1,2018 THROUGH FEBRUARY 28,2019
MARCH 1, OCTOBER 1, MARCH 1,
2018 2018 2018
THROUGH THROUGH THROUGH
SEPTEMBER 30, FEBRUARY 28, FEBRUARY 28,
2018 2019 2019
REVENUES
State of Michigan
Cash Received $ 180,897 $ - $ 180,897
Unearned Revenue- current year - (95,873) (95,873)
Unearned Revenue-prior year (179,373) 179,373 -
TOTAL REVENUES $ 1,524 $ 83,500 $ 85,024
EXPENDITURES
Pass Thru $ 1,524 $ 83,500 $ 85,024
TOTAL EXPENDITURES $ 1,524 $ 83,500 $ 85,024
37
TRI-COUNTY REGIONAL PLANNING COMMISSION
SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED)
MID-MICHIGAN WATER AUTHORITY 2018
PROJECT PERIOD JANUARY 1,2018 THROUGH DECEMBER 31,2018
VARIOUS MUNICIPALITIES- Cash (30700)
JANUARY 1, OCTOBER 1, JANUARY 1,
2018 2018 2018
THROUGH THROUGH THROUGH
SEPTEMBER 30, DECEMBER 31, DECEMBER 31,
2018 2018 2018
REVENUES
Local
Cash Received $ - $ - $ -
Accounts Receivable 57S 835 1,410
TOTAL REVENUES $ 575 $ 835 $ 1,410
EXPENDITURES
Salaries $ 304 $ 433 $ 737
Fringe Benefits 123 166 289
Indirect Costs 148 236 384
TOTAL EXPENDITURES $ 575 $ 835 $ 1,410
39
TRI-COUNTY REGIONAL PLANNING COMMISSION
SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED)
EDA PLANNING GRANT
PROJECT PERIOD JULY 1,2016 THROUGH JUNE 30, 2019
EDA GRANT NO. 06-83-05565 (31400)
EDA $169,095 Cash
TCRPC $169,095 Cash
JULY 1, OCTOBER 1, JULY 1,
2016 2018 2016
THROUGH THROUGH THROUGH
SEPTEMBER 30, JUNE 30, JUNE 30,
2018 2019 2019
REVENUES
Federalgrant
Cash Received $ 90,595 $ 102,062 $ 192,657
Accounts Receivable 15,469 (15,469) -
Unearned Revenue - - -
TOTAL REVENUES 106,064 86,593 192,657
OTHER FINANCING SOURCES
Operating transfers in
Local Match 106,064 86,593 192,657
TOTAL REVENUES AND OTHER
FINANCING SOURCES $ 212,128 $ 173,186 $ 385,314
EXPENDITURES
Salaries $ 88,401 $ 43,407 $ 131,808
Fringe Benefits 38,707 16,643 55,350
Telephone 90 180 270
Postage 59 - 59
Printing and Copying 397 467 864
Office Supplies 2,298 2,589 4,887
Travel In-Region 5,471 4,906 10,377
Travel Out-Region 9,629 6,186 15,815
Training 2,021 - 2,021
Computer Software - 111 111
Membership Dues 755 295 1,050
Special Projects - 36,234 36,234
Contractual Services - 4,500 4,500
Equipment - 2,258 2,258
Pass Thru 7,876 26,000 33,876
Indirect Costs 56,524 29,410 85,934
TOTAL EXPENDITURES $ 212,228 $ 173,186 $ 385,414
41
TRI-COUNTY REGIONAL PLANNING COMMISSION
SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED)
FHWA PL FUNDS
PROJECT PERIOD OCTOBER 1,2018 THROUGH SEPTEMBER 30,2019
FHWA CONTRACT NO. PL 2018-0011/Z3 (32100)
FHWA $665,513 Cash
TCRPC $147,576 Cash
REVENUES
Federal grant
Cash Received $ 387,760
Accounts Receivable 155,406
TOTAL REVENUES 543,166
OTHER FINANCING SOURCES
Operating transfers in
Local Match 120,446
TOTAL REVENUES AND OTHER
FINANCING SOURCES $ 663,612
EXPENDITURES
Salaries $ 307,772
Fringe Benefits 118,007
Telephone 10
Printing and Copying 1,757
Office Supplies 138
Travel In-Region 8,345
Travel Out-Region 11,167
Training 550
Computer Services 1,288
Computer Software 7,922
Publications 171
Advertising 500
Membership Dues 2,754
Consultants 16,867
Equipment 5,315
Indirect Costs 181,049
TOTAL EXPENDITURES $ 663,612
43
TRI-COUNTY REGIONAL PLANNING COMMISSION
SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED)
REGIONAL TRANSPORTATION CONTRACT
PROJECT PERIOD OCTOBER 1,2018 THROUGH SEPTEMBER 30,2019
MDOT CONTRACT NO.2018-0022/Z1 (32400)
MDOT $40,100 Cash
REVENUES
State of Michigan
Cash Received $ 22,625
Accounts Receivable 17,457
TOTAL REVENUES $ 40,082
EXPENDITURES
Salaries $ 20,795
Fringe Benefits 7,973
Indirect Costs 11,314
TOTAL EXPENDITURES $ 40,082
45
TRI-COUNTY REGIONAL PLANNING COMMISSION
SCHEDULE OF PROJECT REVENUES AND EXPENDITURES(UNAUDITED)
STATEWIDE PLANNING AND RESEARCH
PROJECT PERIOD OCTOBER 1,2018 THROUGH SEPTEMBER 30,2019
MDOT CONTRACT NO. 2018-0022/Z5 (34000)
MDOT $16,000 Cash
REVENUES
Federal grant
Cash Received $ 7,396
Accounts Receivable 9,120
State of Michigan
Cash Received 1,640
Accounts Receivable 2,022
TOTAL REVENUES $ 20,178
EXPENDITURES
Salaries $ 10,469
Fringe Benefits 4,014
Indirect Costs 5,695
TOTAL EXPENDITURES $ 20,178
47
REGIONAL STATEWIDE
PROSPERITY MDOT GRANT: REGIONAL PLANNING
GRANT FHWA PL ASSET TRANSPORTATION AND
FY2018 FUNDS MANAGEMENT CONTRACT STP GRANT RESEARCH
(31300) (32100) (32300) (32400) (32800) (34000)
$ 83,500 $ 663,612 $ 39,983 $ 40,082 $ 53,519 $ 20,178
- 120,446 - - 9,714 -
83,500 543,166 39,983 40,082 43,805 20,178
0% 82% 100% 100% 82% 100%
83,500 543,166 39,983 40,082 43,805 20,178
83,500 387,760 15,926 22,625 32,246 1,640
$ - $ 155,406 $ 24,057 $ 17,457 $ 11,559 $ 18,538
49
TRI-COUNTY REGIONAL PLANNING COMMISSION
ANALYSIS OF INDIRECT COST RATE (UNAUDITED)
YEAR ENDED SEPTEMBER 30,2019
Indirect Base Indirect Costs
Total expenditures $ - $ 1,861,546
Direct expenditures 1,503,553 (1,503,553)
Less:
Discretionary funds (2,435) -
Special projects (48,807) -
Consultant fee/contractual services (23,700) -
Furniture/equipment (17,001) -
Pass thru (268,495) -
Transfer for match (232,788) -
$ 910,327 $ 357,993
Indirect cost rate (indirect costs as a part of indirect base) 39.33%
51
aner Maner Costerisan PC
2425 E.Grand River Ave.
Suite 1
osterisan Lansing,MI432.375 91
T.517 323 750
Certified Public Accountants F.517 323 6346
Business&Technology 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 GOVERNMENT AUDITING STANDARDS
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,
2019, 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 24, 2020.
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. We did identify certain deficiencies in internal control,described below
as 2019-001 and 2019-002,that we consider to be significant deficiencies:
53
2019-001 REVIEW OF JOURNAL ENTRIES
Condition: During our review of the journal entries recorded by the Commission, we noted that there
was no indication of review by someone independent of the journal entry preparation and entry in the
general ledger.
Criteria: For sound internal control,an independent review and approval of the adjusting journal entries
should be performed by someone independent of the journal entry preparation and entry processes.
Cause: The responsibility for the Commission's financial statements has been assigned to the Finance
Director. However, a risk of material misstatement of the financial statements exists because there is
not an independent review and approval of adjusting journal entries.
Effect: Without controls in place over the journal entry process, there is the potential for material
misstatement and fraudulent activity.
Recommendation: We recommend that the Commission implement a review process whereby the
journal entries prepared by the Finance Director are reviewed by someone independent of the journal
entry preparation and entry processes on at least a monthly basis and the preparer and reviewer both
initial and date the journal entry report as evidence of preparation and review.
Corrective Action Response: The Commission will adopt procedures for the Executive Director to review
the journal entries with the Finance Director monthly.
2019-002 TIMELINESS OF BANK RECONCILIATIONS
Condition: During our analysis of the Commission's cash accounts,we noted that the bank reconciliations
were not always performed promptly(within the month following the bank statement date).
Criteria: All bank accounts should be reconciled to the computerized general ledger on a monthly basis.
Cause: Bank reconciliations were not performed promptly for all accounts as the October 2018 bank
statement was not reconciled until January 2019.
Effect: Without timely reconciliation and review,there is an increased risk of misstatement of assets or
errors that might go undetected.
Recommendation: We recommend that the current month's reconciliations be completed prior to
receiving the subsequent month's bank statement.
Corrective Action Response: With the Executive Director signing the checks, the responsibility of doing
the bank reconciliation was assigned to another staff person. There was a delay in transitioning to that
process. The Commission will make sure bank reconciliations are performed in a timely manner.
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
GovernmentAuditing Standards.
54
Tri-County Regional Planning Commission's Responses to the Findings
The Commission's responses to the findings identified in our audit are described above. The Commission's
responses were not subjected to the auditing procedures applied in the audit of the financial statements and,
accordingly,we express no opinion on them.
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 24,2020
55