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HomeMy WebLinkAboutTRI - County Report ocr 4 TRI - 00UNTUY ,' ! � ►1 � regional planning commission January 10, 2019 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 2018 for the Tri-County Regional Planning Commission. If you have any questions, please feel free to contact us. Sincerely, reg Hoffman Finance Director Encl. AUDIT LTR 3135 PINE TREE RD I SUITE 2C I LANSING, MI 48911 11-: (517) 393-0342 1 F: (517) 393-4424 i CTri-County Regional Planning Commission Lansing, Michigan FINANCIAL STATEMENTS September 30, 2018 � a 1, u Tri-County Regional Planning Commission TABLE OF CONTENTS September 30, 2018 Paqe INDEPENDENT AUDITOR'S REPORT i-ii MANAGEMENT'S DISCUSSION AND ANALYSIS iii-v BASIC FINANCIAL STATEMENTS Government-wide Financial Statements I Statement of Net Position 1 Statement of Activities 2 Governmental Fund Financial Statements Balance Sheet 3 Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Position 4 Statement of Revenues, Expenditures, and Changes in Fund Balance 5 I Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balance of the Governmental Fund to the Statement of Activities 6 Notes to Financial Statements 7-14 C REQUIRED SUPPLEMENTARY INFORMATION General Fund Budgetary Comparison Schedule 15-16 I OTHER SUPPLEMENTARY INFORMATION Schedule of Commission Revenues and Expenditures (Unaudited) 17 Combining Schedule of Project Revenues and Expenditures (Unaudited) 18-21 Schedule of Project Revenues and Expenditures (Unaudited) 22-41 Analysis of Completed Projects (Unaudited) 42-44 Analysis of Local Match (Unaudited) 45 Analysis of Indirect Cost Rate (Unaudited) 46 Schedule of Fringe Benefits (Unaudited) 47 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN I AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 48-49 l S11LT STEVENS KIRINOVIC & TUCKER P.C. 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, 2018, 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. 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, 2018, 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. 3511 Coolidge Road, Suite 100 ♦ East Lansing ♦ Michigan 48823 517.351.6836 e sktcpas.com - I - 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 November 30, 2018, 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. STEVENS, KIRINOVIC &TUCKER, P.C. Certified Public Accountants November 30, 2018 - ii - Tri-County Regional Planning Commission MANAGEMENT'S DISCUSSION AND ANALYSIS Year Ended September 30, 2018 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, 2018. Please read it in conjunction with the attached financial statements. Financial Highlights Our FY 2018 financial status decreased from the prior year. Net position decreased by $51,823 compared to 2017 increase of$63,226. Total Net Position is now$554,428 of which $14,697 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 2018 2017 Current assets $ 903,184 $ 955,657 Capital assets, net 14,697 19,310 Noncurrent assets 150,000 150,000 Total assets 1,067,881 1,124,967 Current liabilities 513,453 518,716 Investment in capital assets 14,697 19,310 Unrestricted 539,731 586,941 Total net position $ 554,428 $ 606,251 Table 2 Changes in Net Position Governmental Activities 2018 2017 Net position, October 1 $ 606,251 $ 543,025 Results of operations (53,478) 49,289 Prior period adjustments 1,655 13,937 Total changes in net position (51,823) 63,226 Net position, September 30 $ 554,428 $ 606,251 For 2018 and 2017, overall revenues were $1,518,545 and $1,624,940, respectively, and overall expenses were $1,572,022 and $1,575,651, respectively, as reported in the statements of activities. Tri-County Regional Planning Commission MANAGEMENT'S DISCUSSION AND ANALYSIS Year Ended September 30, 2018 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, 2018, by$53,478. Total unrestricted net position was $539,731 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$5,263. This was due to decreases in accounts payable. Financial Analysis of the Commission's Fund Amendments to our budget for the year ended September 30, 2018, 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 $180,545, $64,768, and $68,409 lower than anticipated, respectively. The final expenditure budget increased from the original budget; the final _ budget was $330,064 greater than actual expenditures. Capital Assets The following is a summary of capital assets and the associated accumulated depreciation: Fiscal Year Fiscal Year 2018 2017 Furniture and equipment $ 196,220 $ 196,220 Less: Accumulated depreciation (181,523) (176,910) Net capital assets $ 14,697 $ 19,310 The capital assets of the Commission consist exclusively of office furniture and equipment. The Commission has implemented a capitalization policy consistent with MDOT and federal funding that require all items, other than buildings, building improvements and land improvements, purchased having a useful life in excess of one year and an individual cost of more than $5,000 be capitalized and depreciated. The capitalization threshold for buildings and building improvements is $50,000 and $25,000 for land improvements. Note D to the financial statements provides additional information regarding capital assets. Contacting Commission Management This financial report is designed to provide a general overview of the Commission's finances and to demonstrate the Commission's accountability for the revenues it receives. If you have any questions concerning the report, please contact the Commission's office. -v- i C 0 BASIC FINANCIAL STATEMENTS J J Tri-County Regional Planning Commission STATEMENT OF ACTIVITIES Year Ended September 30, 2018 Program _ Revenues Net (Expense) Operating Revenue and Grants and Changes in Functions/Programs Expenses Contributions Net Position Governmental activities Planning programs $ 1,572,023 $ 1,131,115 $ (440,908) General revenues Member allocations 383,519 Investment earnings 1,004 Miscellaneous 2,907 Total general revenues 387,430 Change in net position (53,478) Restated net position, beginning of the year 607,906 Net position, end of the year $ 554,428 See accompanying notes to financial statements. -2 - Tri-County Regional Planning Commission RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET TO THE STATEMENT OF NET POSITION September 30, 2018 Total fund balance-governmental fund $ 539,731 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 (181,523) Capital assets, net 14,697 Net position of governmental activities $ 554,428 See accompanying notes to financial statements. -4- 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, 2018 Net change in fund balance-governmental fund $ (48,865) 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 (4,613) Change in net position of governmental activities $ (53,478) -6- Tri-County Regional Planning Commission NOTES TO FINANCIAL STATEMENTS September 30, 2018 NOTE A: DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 4. Basis of Accounting -continued 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. 5. Budgets and Budgetary Accounting The overall budget is based upon individual projects and the general operating fund budgets. Budgeted amounts areas originally adopted, and maybe 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. 6. 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 acquisition value on the date received. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Depreciation is computed using the straight-line method over the following useful lives: Infrastructure 20-100 years Buildings and building improvements 20-50 years Vehicles 4-15 years Furniture and equipment 5-7 years 7. Cash and Investments Cash consists of the Commission's checking and savings accounts. -8- Tri-County Regional Planning Commission NOTES TO FINANCIAL STATEMENTS September 30, 2018 NOTE B: DEPOSITS -CONTINUED 3. Commercial paper rated at the time of purchase within the three (3) highest classifications established by not less than two(2)standard rating services and which matures not more than 270 days after the date of purchase. 4. The United States government or Federal agency obligations repurchase agreements. 5. Bankers' acceptances of United States banks. 6. Mutual funds composed of investment vehicles, which are legal for direct investment by local units of government in Michigan. Deposits There is a custodial risk as it relates to deposits. In the case of deposits, this is the risk that in the event of a bank failure, the Commission's deposits may not be returned to it. As of September 30, 2018, the carrying amounts and bank balances for the accounts were as follows: Carrying Bank Account Type Amount Balance Checking $ 92,282 $ 147,520 Savings 504,748 504,748 Certificate of Deposit 150,000 150,000 $ 747,030 $ 802,268 Deposits of the Commission are at federally insured banks located in the State of Michigan with all accounts maintained in the name of the Commission. The bank balances as of September 30, 2018, were federally insured for$647,521 and the amount of$154,747 was uninsured and uncollateralized. The cash caption on the financial statements includes $150 of imprest cash. Credit Risk State law limits investments in certain types of investments to a prime or better rating issued by nationally recognized statistical rating organizations (NRSRO's). As of September 30, 2018, the Commission did not have any investments that would be subject to rating. 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. - 10 - Tri-County Regional Planning Commission NOTES TO FINANCIAL STATEMENTS September 30, 2018 NOTE E: LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations (including current portion) of the Commission for the year ended September 30, 2018. Amount Balance Balance Due Within Oct. 1, 2017 Earned Used Sept. 30, 2018 One Year Compensated absences $ 32,800 $ 101,750 $ (102,493) $ 32,057 $ 32,057 Vacation leave is earned in varying amounts depending on the number of years of service of an employee and is made available on the anniversary date of the employee. Upon termination, an employee receives payment for the balance of unused vacation leave, which is credited to an employee each month. NOTE F: 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 by the 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$64,918, covered payroll was $721,306, and total payroll was $721,801 during the fiscal year. Contributions to the plan during the fiscal year were $65,857. NOTE G: 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 H: 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. - 12- Tri-County Regional Planning Commission NOTES TO FINANCIAL STATEMENTS September 30, 2018 NOTE K: DETAILS OF FUND BALANCE CLASSIFICATIONS -CONTINUED 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. The Commission has not formally adopted a policy that determines when both restricted and unrestricted fund balances are available which should be used first,therefore restricted resources will be used first,then unrestricted resources if they are needed. NOTE L: PRIOR PERIOD ADJUSTMENTS AND RESTATEMENT OF NET POSITION The following prior period adjustments were made during the year to correct accounting errors. These adjustments were reported as changes to the beginning net position/fund balance. The effect on operations and other affected balances for the current year are as follows: Governmental Activities General Fund Beginning net position/fund balance $ 606,251 $ 586,941 Overstated accrued liabilities 353 353 Overstated accounts payable 2,717 2,717 Understated deferred revenue (1,415) (1,415) Restated beginning net position/fund balance $ 607,906 $ 588,596 The corrections of accounting errors reported in the funds resulted in a restatement of the beginning net position and fund balance for governmental activities and the general fund, respectively. The beginning net position/fund balance for both governmental activities and the general fund increased by$1,655, respectively. NOTE M: UPCOMING ACCOUNTING PRONOUNCEMENT In June 2017, the GASB issued Statement No. 87, Leases. The Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provision of the contract. The Commission is currently evaluating the impact this standard will have on the financial statements when adopted during the 2020-2021 fiscal year. - 14- REQUIRED SUPPLEMENTARY INFORMATION Tri-County Regional Planning Commission General Fund BUDGETARY COMPARISON SCHEDULE - CONTINUED Year Ended September 30, 2018 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) EXPENDITURES - CONTINUED Current-continued Community and economic development -continued Special projects $ 24,350 $ 51,472 $ 41,957 $ 9,515 Consultant fee 35,000 150,000 92,415 57,585 Contractual services 9,000 45,000 14,224 30,776 Furniture/equipment purchases 10,000 15,000 13,799 1,201 Pass-through 72,216 230,852 155,722 75,130 TOTAL EXPENDITURES 1,510,223 1,897,474 1,567,410 330,064 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 9,147 (60,117) (48,865) 11,252 OTHER FINANCING SOURCES (USES) Operating transfers for local match 202,658 218,941 191,083 (27,858) Transfer for local match (202,805) (218,911) (191,083) 27,828 TOTAL OTHER FINANCING SOURCES (USES) (147) 30 -0- (30) NET CHANGE IN FUND BALANCE 9,000 (60,087) (48,865) 11,222 Restated fund balance, beginning of year 588,596 588,596 588,596 -0- Fund balance, end of year $ 597,596 $ 528,509 $ 539,731 $ 11,222 - 16- i i r f , " OTHER SUPPLEMENTARY INFORMATION E Tri-County Regional Planning Commission SCHEDULE OF COMMISSION REVENUES AND EXPENDITURES (UNAUDITED) Year Ended September 30, 2018 Special Projects Operating Indirect Direct Total Eliminations Total REVENUES Federal sources $ - $ - $ 575,018 $ 575,018 $ - $ 575,018 State sources - - 286,234 286,234 - 286,234 Local sources - - 269,863 269,863 - 269,863 Member allocations 383,519 - - - - 383,519 Interest 1,004 - - - - 1,004 Operating transfers in local match - - 191,083 191,083 (191,083) -0- Other 4,820 - 2,700 2,700 (4,613) 2,907 TOTAL REVENUES 389,343 -0- 1,324,898 1,324,898 (195,696) 1,518,545 EXPENDITURES Direct costs Salaries and wages 109,105 116,488 496,208 612,696 - 721,801 Fringe benefits 44,211 47,188 201,074 248,262 - 292,473 Discretionary funds 12,646 - - -0- - 12,646 Telephone 96 1,848 551 2,399 - 2,495 Postage 166 480 131 611 - 777 Printing and copying 1,365 2,483 3,710 6,193 - 7,558 Office supplies 233 5,201 5,181 10,382 - 10,615 Graphic supplies - 70 - 70 - 70 Travel-in region 457 514 15,868 16,382 - 16,839 Travel-out region 56 2,679 22,079 24,758 - 24,814 Training - (592) 1,680 1,088 - 1,088 Commission meeting expenses 2,308 - - -0- - 2,308 Rent-meeting facility 139 331 90 421 - 560 Rent-office - 69,086 - 69,086 - 69,086 Equipment maintenance - 361 - 361 - 361 Computer services - 29,758 - 29,758 - 29,758 Computer software - 18,330 11,578 29,908 - 29,908 Insurance - 6,198 - 6,198 - 6,198 Bank service charges 815 - - -0- - 815 Subscriptions - 613 - 613 - 613 Publications - (33) - (33) - (33) Advertising - - 2,085 2,085 - 2,085 Depreciation - 4,613 - 4,613 (4,613) -0- Membership dues - 4,430 3,228 7,658 - 7,658 Special projects - (54) 42,011 41,957 - 41,957 Consultant fee - - 92,415 92,415 - 92,415 Contractual services 12,840 1,384 - 1,384 - 14,224 Furniture/equipment purchases 13,799 - -0- - 13,799 Audit - 8,800 - 8,800 - 8,800 Pass-through - - 155,722 155,722 - 155,722 Transfer for match 184,751 - 6,332 6,332 (191,083) -0- Indirect costs 55,221 (320,176) 264,955 (55,221) - -0- TOTAL EXPENDITURES 438,208 -0- 1,324,898 1,324,898 (195,696) 1,567,410 NET REVENUES OVER (UNDER)EXPENDITURES $ (48,865) $ -0- $ -0- $ -0- $ -0- $ (48,865) - 17 - GROUNDWATER MANAGEMENT REGIONAL REGIONAL REGIONAL REGIONAL BOARD WELLHEAD PROSPERITY PROSPERITY PROSPERITY PROSPERITY (GMB)2018 GRANT 2018 GRANT 2015 GRANT 2016 GRANT 2017 GRANT 2018 (30400) (30500) (31300) (31300) (31300) (31300) - - 65,364 35,584 40,824 1,524 48,382 41,091 - - - - 48,382 41,091 65,364 35,584 40,824 1,524 48,382 41,091 65,364 35,584 40,824 1,524 22,731 7,121 - 1,612 - - 9,211 2,885 - 653 - - 29 - - - - - 930 - - - - - 155 - - - - - 165 120 229 41 - - - - (80) - - - - 79 - - 500 - - - - 312 - - - - - 929 6,240 - - 650 - - 20,538 - - - - - - 6,332 - - - 2,284 - 58,724 32,479 40,174 1,524 11,636 3,687 79 800 - - 48,382 41,091 65,364 35,584 40,824 1,524 $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- - 19- SURFACE TRANSIT REGIONAL TRANSPORT STATE ASSISTANCE DEMAND AND MDOT GRANT: TRANSPORT ATION PLANNING TO MDOT: ECONOMIC ASSET ATION PROGRAM AND OFFICE OF PROSPERITY MANAGEMENT CONTRACT GRANT RESEARCH PASSENGER GRANT (32300) (32400) (32800) (34000) (34500) (34900) TOTAL $ - $ - $ 30,050 $ - $ - $ - $ 575,018 28,643 40,100 - 16,000 2,000 56,195 286,234 - - - - - - 269,863 - - - - - 2,700 28,643 40,100 30,050 16,000 2,000 56,195 1,133,815 - - 7,516 - - 13,178 191,083 28,643 40,100 37,566 16,000 2,000 69,373 1,324,898 10,230 21,185 19,737 8,453 990 (1,298) 496,208 4,145 8,585 7,997 3,425 401 (526) 201,074 - - - - - - 551 - - 131 94 - 3,710 - - - - - - 5,181 33 - 155 - - (35) 15,868 55 - - - - - 22,079 - - - - - - 1,680 - - 90 - - - 11,578 - - - - 2,085 - - - - 3,228 - - - - 42,011 - - - 71,877 92,415 - - - - - - 6,332 9,161 - - - - - 155,722 5,019 10,330 9,677 4,122 515 (645) 264,955 28,643 40,100 37,566 16,000 2,000 69,373 1,324,898 $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- -21 - Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) GREATER LANSING AREA CLEAN CITIES Project period February 1, 2017 to January 31, 2020 FEBRUARY 1, OCTOBER 1, FEBRUARY 1, 2017 2017 2017 THROUGH THROUGH THROUGH SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2017 2018 2018 REVENUES Local Cash Received $ - $ 34,879 $ 34,879 Accounts Receivable 34,879 23,594 58,473 TOTAL REVENUES $ 34,879 $ 58,473 $ 93,352 EXPENDITURES Salaries $ 14,440 $ 26,771 $ 41,211 Fringe Benefits 6,763 10,848 17,611 Telephone - 341 341 Printing and Copying 65 12 77 Office Supplies - 60 60 Travel In-Region - 1,503 1,503 Travel Out-Region 1,741 3,112 4,853 Training 1,225 734 1,959 Computer Services - 29 29 Indirect Costs 10,645 15,063 25,708 TOTAL EXPENDITURES $ 34,879 $ 58,473 $ 93,352 -23 - Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) GREATER LANSNG REGIONAL COMMITTEE (GLRC)2017 Project period January 1, 2017 to December 31, 2017 VARIOUS MUNICIPALITIES-Cash (30310) JANUARY 1, OCTOBER 1, JANUARY 1, 2017 2017 2017 THROUGH THROUGH THROUGH SEPTEMBER 30, DECEMBER 31, DECEMBER 31, 2017 2017 2017 REVENUES Local Cash Received $ 138,100 $ - $ 138,100 Unearned Revenue-prior year (83,584) 83,584 -0- Unearned Revenue-current year - (56,733) (56,733) TOTAL REVENUES $ 54,516 $ 26,851 $ 81,367 EXPENDITURES Salaries $ 23,269 $ 11,416 $ 34,685 Fringe Benefits 10,898 4,626 15,524 Telephone - 18 18 Printing and Copying 24 51 75 Travel In-Region 839 407 1,246 Travel Out-Region 526 25 551 Membership Dues 80 - 262 Special Projects 3,225 4,567 7,792 Indirect Costs 15,655 5,741 21,396 TOTAL EXPENDITURES $ 54,516 $ 26,851 $ 81,367 -25- Tri-County 9 9 Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) WELLHEAD GRANT 2018 Project period October 1, 2017 to September 30, 2018 VARIOUS MUNICIPALITIES-Cash (30500) REVENUES Local I Accounts Receivable $ 41,091 EXPENDITURES Salaries $ 7,121 Fringe Benefits 2,885 Travel In-Region 120 Computer Software 500 Special Projects 6,240 Pass Thru 20,538 Indirect Costs 3,687 L, TOTAL EXPENDITURES $ 41,091 l� �J u -27- Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) REGIONAL PROSPERITY GRANT FY 2016 Project period March 1, 2016 through December 31, 2018 MARCH 1, OCTOBER 1, MARCH 1, 2016 2017 2016 THROUGH THROUGH THROUGH SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2017 2018 2018 REVENUES State of Michigan Cash Received $ 186,500 $ - $ 186,500 Unearned Revenue-current year (35,584) 35,584 -0- TOTAL REVENUES $ 150,916 $ 35,584 $ 186,500 EXPENDITURES Salaries $ 17,078 $ 1,612 $ 18,690 Fringe Benefits 8,237 653 8,890 Travel In-Region 540 41 581 Travel Out-Region 777 (80) 697 Rent of Facility - 79 79 Consultant Fee 10,883 - 10,883 Pass Thru 101,842 32,479 134,321 Indirect Costs 11,559 800 12,359 TOTAL EXPENDITURES $ 150,916 $ 35,584 $ 186,500 -29 - 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 REVENUES State of Michigan Cash Received $ 180,897 Unearned Revenue-current year (179,373) TOTAL REVENUES $ 1,524 EXPENDITURES Pass Thru $ 1,524 -31 - Tri-County 9 9 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 (30800) REVENUES Local Accounts Receivable $ 575 EXPENDITURES 1 Salaries 304 Fringe Benefits 123 C, Indirect Costs 148 TOTAL EXPENDITURES $ 575 L, 1 , L 1 I 1-- 1_ - 33- Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) FHWA PL FUNDS Project period October 1, 2017 through September 30, 2018 FHWA CONTRACT NO. PL 2018-0011/Z1 (32200) FHWA $ 659,615 Cash TCRPC $ 146,268 Cash REVENUES Federal grant Cash Received $ 355,706 Accounts Receivable 125,576 TOTAL REVENUES 481,282 ' OTHER FINANCING SOURCES Operating transfers in Local Match 106,723 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 588,005 EXPENDITURES r Salaries $ 279,150 IL Fringe Benefits 113,112 Telephone 103 Postage 86 r ' Printing and Copying 2,156 LL Office Supplies 2,634 Travel In-Region 8,046 Travel Out-Region 12,828 [ , Rent of Facility 150 Computer Services 11 Computer Software 11,010 Advertising 2,085 Membership Dues 2,557 Pass Thru 3,500 Indirect Costs 150,577 TOTAL EXPENDITURES $ 588,005 -35- Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) REGIONAL TRANSPORTATION CONTRACT Project period October 1, 2017 through September 30, 2018 MDOT CONTRACT NO. 2018-0022/Z1 (32400) MDOT $ 40,100 Cash REVENUES State of Michigan Cash Received $ 35,291 Accounts Receivable 4,809 TOTAL REVENUES $ 40,100 EXPENDITURES Salaries $ 21,185 Fringe Benefits 8,585 Indirect Costs 10,330 TOTAL EXPENDITURES $ 40,100 - 37- Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) STATEWIDE PLANNING AND RESEARCH Project period October 1, 2017 through September 30, 2018 MDOT CONTRACT NO. 2018-0022/Z2 (34000) MDOT $ 16,000 Cash REVENUES State of Michigan Cash Received $ 14,068 Accounts Receivable-current year 1,932 TOTAL REVENUES $ 16,000 EXPENDITURES Salaries $ 8,453 Fringe Benefits 3,425 Indirect Costs 4,122 TOTAL EXPENDITURES $ 16,000 -39 - Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) TRANSIT DEMAND AND ECONOMIC PROSPERITY GRANT Project period September 1, 2016 through September 30, 2018 MDOT CONTRACT NO. 2015-0011/Z16/R1 (34900) FEDERAL $ 150,000 TCRPC $ 37,500 REGIONAL PROSPERITY INITIATIVE GRANT (31310) SEPTEMBER 1, OCTOBER 1, SEPTEMBER 1, 2016 2017 2016 THROUGH THROUGH THROUGH SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2017 2018 2018 REVENUES Federal - FTA Cash Received $ 67,106 $ 56,195 $ 123,301 Accounts Receivable 27,397 - 27,397 TOTAL REVENUES 94,503 56,195 150,698 OTHER FINANCING SOURCES Operating transfers in Local Match 23,625 13,178 36,803 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 118,128 $ 69,373 $ 187,501 EXPENDITURES Salaries $ 9,712 $ (1,298) $ 8,414 Fringe Benefits 4,548 (526) 4,022 Travel In-Region 199 (35) 164 Consultant 97,318 71,877 169,195 Indirect Costs 6,351 (645) 5,706 TOTAL EXPENDITURES $ 118,128 $ 69,373 $ 187,501 -41 - REGIONAL STATEWIDE PROSPERITY MDOT GRANT: REGIONAL PLANNING GRANT FHWA PL ASSET TRANSPORTATION AND FY2015 FUNDS MANAGEMENT CONTRACT STP GRANT RESEARCH (31300) (32200) (32300) (32400) (32800) (34000) $ 65,364 $ 588,005 $ 28,643 $ 40,100 $ 37,566 $ 16,000 - 106,723 - - 7,516 - 65,364 481,282 28,643 40,100 30,050 16,000 r0% 82% 100% 100% 80% 100% " 65,364 481,282 28,643 40,100 30,050 16,000 r 65,364 355,706 7,633 35,291 15,692 14,068 L $ -0- $ 125,576 $ 21,010 $ 4,809 $ 14,358 $ 1,932 1 , L I C -43 - Tri-County Regional Planning Commission ANALYSIS OF LOCAL MATCH (UNAUDITED) Year Ended September 30, 2018 Local Match Provided by Regional Local Prosperity Match Initiative Grant Commission (31310) Total EDA PLANNING (31500) $ 63,666 $ - $ 63,666 FHWA PL Funds (32200) 106,723 - 106,723 STP (32800) 7,516 - 7,516 TRANSIT STUDY(34900) 6,847 6,331 13,178 $ 184,752 $ 6,331 $ 191,083 -45 - Tri-County Regional Planning Commission SCHEDULE OF FRINGE BENEFITS (UNAUDITED) Year Ended September 30, 2018 Social security and Medicare (FICA) Contributions $ 54,109 Unemployment Taxes 4,070 Pension Contributions 65,857 Health Insurance 141,287 Dental Insurance 15,159 Group Life Insurance 7,410 Employee Assistance Program 342 Workers Compensation Insurance 3,637 Fringe Benefits Miscellaneous 602 Total Fringe Benefits $ 292,473 Salaries and wages for the year ended September 30, 2018 $ 721,801 Fringe Benefit Rate -All Employees 40.52% -47 - STEVENS KIRINOVIC & TUCKER P.C. 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, 2018, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements and have issued our report thereon dated November 30, 2018. 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 consider the following deficiency described below to be a significant deficiency: 2018-001 CREDIT CARD TRANSACTION SUPPORT Condition: During our testing of purchasing(credit)cards,we tested two(2)months of credit card transactions. There were thirty-five(35)total transactions during the two(2)months tested, and three(3)transactions tested were missing support for the amounts charged to the credit card. Criteria: The Commission's credit card policy requires receipts or supporting documentation to be submitted by the user of the credit card prior to the bill being paid. Cause: Unknown. 3511 Coolidge Road, Suite 100 ♦ East Lansing ♦ Michigan 48823 517,351.6836 ♦ sktcpas.com -48 - 2018-001 CREDIT CARD TRANSACTION SUPPORT-CONTINUED Effect: By failing to follow its credit card policy and procedures, the Commission is at greater risk for error or fraud which could lead to material misstatement of the financial statements. Recommendation: We recommend that the Commission review its policy related to credit card usage and ensure all credit card transactions are supported by a receipt prior to payment being made by the Commission. Corrective Action Response: The Commission will review its policy related to credit card usage and will ensure that credit cards transactions are supported by a receipt prior to payment. Receipts for monthly software charges will be obtained. 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 Government Auditing Standards. Tri-County Regional Planning Commission's Response to the Finding The Commission's response to the finding identified in our audit is described above. The Commission's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. 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. STEVENS, KIRINOVIC & TUCKER, P.C. Certified Public Accountants November 30, 2018 -49-