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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 w., Rom; d Encl. AUDIT LTR M zo- 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