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HomeMy WebLinkAboutTRI - County audit report FY15 v2 T -COUNTY EMON L N 1'N 10M ISSION PlOnning for People, in, the° Great&� 1 6- ince 1.956 �r- 2015 OFFICERS December 18, 2015 CHAIRPERSON David Pohl,Clinton County VICE-CHAIRPERSON Mr. Chris Swope Kenneth Fletcher,Eaton County City Clerk, City of Lansing TREASURER City Hall124 W. Michigan Shirley M.Rodgers,City of Lansing Lansing, MI 48933 SECRETARY Brian McGrain,Ingham County TRI-COUNTY COMMISSIONERS Dear Mr. Swope: Kent Austin Teri Banas In accordance with our Bylaws, we are submitting the audit report Judi Brown Clarke for the fiscal year 2015 for the Tri-County Regional Planning Shanna Draheim Roger Eakin Commission. Kenneth Fletcher Kara Hope If you have any questions, please feel free to contact us. Denise Jackson Robin Lewis Sincerely, Brian McGrain David Pohl Shirley M.Rodgers Howard Spence Adam Stacey �FinanceffDmireceg oa Chris Swope or Darrell Tennis John Veenstra Gail Watkins Jessica Yorko EX-OFFICIO Encl. City of Lansing Mayor Clinton,Eaton and Ingham County Chairpersons AUDIT LTR 2015 EXECUTIVE DIRECTOR Susan M.C.Pigg,CECD �3135 Pine Tree Read,Suite 2C Lansing,MI 48911 (517)393-0342•Fax;393-4424 www,mitcrpc.org reception 0mitcrpc.Org 7CRPC is an Equal Opportunity Employer Tri-County Regional Planning Commission Lansing, Michigan FINANCIAL STATEMENTS September 30, 2015 i Tri-County Regional Planning Commission TABLE OF CONTENTS September 30, 2015 Page INDEPENDENT AUDITOR'S REPORT i-ii MANAGEMENT'S DISCUSSION AND ANALYSIS iii-vi BASIC FINANCIAL STATEMENTS Government-wide Financial Statements 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 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 REQUIRED SUPPLEMENTARY INFORMATION General Fund Budgetary Comparison Schedule 15-16 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) 42-45 Analysis of Local Match (Unaudited) 46 Analysis of Indirect Cost Rate(Unaudited) 47 Schedule of Fringe Benefits (Unaudited) 48 Transportation Summary of Expenditures(Unaudited) 49-53 Principals �c��i 3511 Coolidge Road Suite 100 Dale J.Abraham, CPA ZSZ=l: East Lansing, M148823 Michael T.Gaffney, CPA (517J 351-6836 Steven R. Kirinovic, CPA ABRAHAM &GAFFNEY, P.C. FAX: (517) 351-6837 Aaron M.Stevens, CPA Certified Public Accountants Eric J. Glashouwer, CPA Alan D. Panter, CPA William I. Tucker IV, CPA INDEPENDENT AUDITOR'S REPORT i 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, 2015, 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. Auburn Hills• East Lansing•Grand Rapids •St.Johns - i- 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 Commission as of September 30, 2015, 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 November 30, 2015, 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. I �t ABRAHAM &GAFFNEY, P.C. Certified Public Accountants November 30, 2015 - ii - Tri-County Regional Planning Commission MANAGEMENT'S DISCUSSION AND ANALYSIS Year Ended September 30, 2015 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, 2015. Please read it in conjunction with the attached financial statements. Financial Highlights Our FY 2015 financial status slightly improved from the prior year. Net position increased by $3,722 compared to 2014 increases of$58,538 and 2013 increases of$40,398. Total Net Position is now$561,615 of which $25,530 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 Fiscal Year 2015 2014 2013 , i Current assets $ 1,071,410 $ 992,206 $ 782,104 i Capital assets, net 25,530 35,033 28,337 Total assets 1,096,940 1,027,239 810,441 Current liabilities 535,325 469,346 311,086 Net investment in capital assets 25,530 35,033 28,337 Unrestricted 536,085 522,860 471,018 i Total net position $ 561,615 $ 557,893 $ 499,355 Table 2 Changes in Net Position Governmental Activities 2015 2014 2013 Net position, October 1 $ 557,893 $ 499,355 $ 458,957 Results of operations 3,722 58,154 37,646 Prior period adjustments - 384 2,752 Total changes in net position 3,722 58,538 40,398 Net position, September 30 $ 561,615 $ 557,893 $ 499,355 For 2015, 2014, and 2013 overall revenues were$1,836,652, $2,902,843, and $2,500,938 respectively and overall expenses were$1,832,930, $2,844,689, and $2,463,292 respectively, as reported in the statements of activities. Tri-County Regional Planning Commission MANAGEMENT'S DISCUSSION AND ANALYSIS Year Ended September 30, 2015 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: Genera!Operating Fund-The Commission's activities are accounted for in the general fund. This fund is presented on the modified accrual basis,which is designed to show short-term financial information. You will note that differences between the government wide statements and the fund statements are disclosed in the reconciling financial statements to explain the differences between them. Financial Analysis of the Commission as a Whole Net Position - The Commission's net position increased during the year ended September 30, 2015, by $3,722. Total unrestricted net position was $536,085 at year end. The unrestricted net position will be used for operating cash-flow, future program shortfalls, and capital asset purchases. i Liabilities - The Commission's liabilities increased by $65,979. This was due to increases in accounts payable and unearned revenues. Financial Analysis of the Commission's Fund Amendments to our budget for the year ended September 30, 2015, 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 and state source revenue were $160,672 and $91,088 lower than anticipated, respectively and local source revenue was$74,933 higher than anticipated. Although the final expenditure budget increased from the original budget, the final budget exceeded actual expenditures by$167,938. Capital Assets The following is a summary of capital assets and the associated accumulated depreciation: Fiscal Year Fiscal Year Fiscal Year 2015 2014 2013 ' Furniture and equipment $ 191,055 $ 191,055 $ 190,463 Less: Accumulated depreciation (165,525) (156,022) 162,126 Net capital assets $ 25,530 $ 35,033 $ 28,337 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. There were no additions to capital assets purchased in the current fiscal year. Note D to the financial statements provides additional information regarding capital assets. -v- ' I I i BASIC FINANCIAL STATEMENTS i Tri-County Regional Planning Commission STATEMENT OF ACTIVITIES Year Ended September 30, 2015 Net(Expense) Operating Revenue and Grants and Changes in Functions/Programs Expenses Contributions Net Position Governmental activities Planning programs $ 1,832,930 $ 1,457,734 $ (375,196) General revenues Member allocations 377,850 Investment earnings 942 Miscellaneous 126 Total general revenues 378,918 Change in net position 3,722 Net position, beginning of the year 557,893 Net position, end of the year $ 561,615 i i I i 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, 2015 Total fund balance -governmental fund $ 536,085 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 $ 191,056 Accumulated depreciation is — (165_525) Capital assets, net 25,530 Net position of governmental activities $ 561,615 i I I 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, 2015 Net change in fund balance -governmental fund $ 13,225 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 9,503 Change in net position of governmental activities $ 3,722 j See accompanying notes to financial statements. - 6- Tri-County Regional Planning Commission NOTES TO FINANCIAL STATEMENTS September 30, 2015 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 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. I ' 6. Capital Assets i 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 fair market 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 : i -8 - . Tri-County Regional Planning Commission NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE B: CASH In accordance with Michigan Compiled Laws, the Commission is authorized to invest in the following investment vehicles: 1. Bonds, securities, and other obligations of the United States or an agency or instrumentality of the United States. 2. Certificates of deposit, savings accounts, deposit accounts, or depository receipts of a bank which is a member of the Federal Deposit Insurance Corporation (FDIC)or a savings and loan association which is a member of the Federal Savings and Loan Insurance Corporation(FSLIC)or a credit union which is insured by the National Credit Union Administration, but only if the bank,savings and loan association, or credit union is eligible to be a depository of surplus funds belonging to the State under Section 5 or 6 of Act No. 105 of the Public Acts of 1855, as amended, being Section 21.145 and 21.146 of the Michigan Compiled Laws. 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, 2015, the carrying amounts and bank balances for the accounts were as follows: Carrying Bank Account TyRe Amount Balance Checking $ 28,159 $ 26,674 Savings 689,125 689,125 $ 717,284 $ 715,799 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 hank balances as of September 30,2015,were federally insured for$501,998 and the amount of$213,801 was uninsured and uncoilateralized. 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, 2015, the Commission did not have any investments that would be subject to rating. , i - 10 - Tri-County Regional Planning Commission NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE D: CAPITAL ASSETS ' Capital asset activity for the year ended September 30, 2015,was as follows: Balance Balance Oct. 1, 2014 Additions Disposals Sept. 30, 2015 Capital assets being depreciated Furniture and equipment $ 191,055 $ - $ - $ 191,055 Less accumulated depreciation for: Furniture and equipment (156,022) (9,503) - 165,525 Net capital assets $ 35,033 $ (9,52 $ -0- $ 25,530 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, 2015. Amount Balance Balance Due Within Oct. 1, 2014 Earned Used Sept. 30, 2015 One Year Compensated absences $ 32,920 $ 128,902 $ (129,078) $ 32,744 $ 32,744 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$65,032, covered payroll was $721,306, and total payroll was $721,306 during the fiscal year. Contributions to the plan during the fiscal year were $65,032. - 12 - Tri-County Regional Planning Commission NOTES TO FINANCIAL STATEMENTS September 30, 2015 NOTE K: DETAILS OF FUND BALANCE CLASSIFICATIONS-CONTINUED 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. ' I 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 I 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. 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 I resources if they are needed. NOTE L: UPCOMING ACCOUNTING PRONOUNCEMENTS In March 2015, the GASB issued Statement No. 72, Fair Value Measurement and Application. This Statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value I is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement provides guidance for determining a fair value measurement for financial reporting purposes. This Statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. The Commission is currently evaluating the impact this standard will have an the financial statements when adopted for the 2015-2016 fiscal year. In June 2015, the GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The statement supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. The statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of authoritative and nonauthoritative literature in the event that the accounting treatment for a transaction or other event is not specified within a source of authoritative GAAP. The Commission is currently evaluating the impact this standard will have on the financial statements when adopted during the 2015-2016 fiscal year. - 14 - f I , REQUIRED SUPPLEMENTARY INFORMATION Tri-County Regional Planning Commission General Fund BUDGETARY COMPARISON SCHEDULE -CONTINUED Year Ended September 30, 2015 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) EXPENDITURES -CONTINUED Current-continued Community and economic development-continued Special projects $ 109,100 $ 87,100 $ 67,674 $ 19,426 Consultant fee 75,868 125,868 123,082 2,786 Contractual services 116,300 66,300 2,500 63,800 Furniture/equipment purchases 15,100 15,100 14,774 326 Audit 9,500 9,200 9,200 -0- Pass-through 84,027 280,059 247,968 32,091 TOTAL EXPENDITURES 1,933,836 1,991,365 1,823,427 167,938 EXCESS OF REVENUES OVER EXPENDITURES -0- 21,046 13,225 (7,821) OTHER FINANCING SOURCES (USES) Transfer for local match (238,439) (241,664) (202,312) 39,352 Operating transfers in local match 238,439 241,664 202,312 (39,352) �e TOTAL OTHER FINANCING SOURCES (USES) -0- -0- -0- -0- NET CHANGE IN FUND BALANCE -0- 21,046 13,225 (7,821) , Fund balance, beginning of year 522,860 522,860 522,860 -0- Fund balance, end of year $ 522,860 $ 543,906 $ 536,085 $ (7,821 - 16- i OTHER SUPPLEMENTARY INFORMATION . : II' Tri-County Regional Planning Commission SCHEDULE OF COMMISSION REVENUES AND EXPENDITURES (UNAUDITED) Year Ended September 30,2015 Special Prcyects _ Operating Indirect Direct Total Eliminations Total REVENUES Federal sources $ - $ - $ 948,242 $ 948,242 $ - $ 948,242 State sources - 82,546 82,546 - 82,546 Local sources - 426,946 426,946 _ 426,946 _ Member allocations 377,860 -0- 377,850 Interest 942 - - -0- - 942 Operating transfers in local match - - 202,312 202,312 (202,312) -0- Other 9,629 - - -0- (9,503) 126 TOTAL REVENUES 388,421 -0- 1,660,046 1,660,046 (211,815) 1,836,652 EXPENDITURES Direct costs Salaries and wages 61,577 167,424 492,305 659,729 - 721,306 Fringe benefits 34,330 93,339 274,473 367,812 - 402,142 Discretionary funds 4,936 - - -0- - 4,936 Telephone - 3,188 - 3,188 - 3,188 Postage 867 1,000 839 1,839 - 2,706 Printing and copying 2,391 2,453 12,212 14,665 - 17,056 Office supplies 47 7,448 3,402 10,850 - 10,897 Graphic supplies 58 718 98 816 - 874 'travel-in region 52 5,336 11,463 16,799 - 16,861 Travel-out region 497 5,475 16,005 21,480 - 21,977 Training 1,552 5,254 2,026 7,280 - 8,832 Commission meeting expenses 1,887 - - -0- - 1,887 Commission travel 75 - -0- - 75 Rent-meeting facility - - 232 232 - 232 Rent-office 65,722 - 65,722 - 65,722 Equipment maintenance 1,732 - 1,732 - 1,732 Computer services 30,312 1,267 31,579 - 31,579 Computer software 9,761 12,090 21,851 - 21,851 Insurance - 7,B33 - 7,833 - 7,833 Bank service charges 763 26 - 26 - 789 Subscriptions - 432 22 454 - 454 Publications - 71 33 104 - 104 Advertising 25 3,180 1,567 4,747 4,772 Depreciation - 9,503 - 9,503 (9,503) -0- Membership dues 395 6,419 3,610 10,029 - 10,424 Special projects - - 67,674 67,674 - 67,674 Consultant fee 123,082 123,082 - 123,082 Contractual services - 2,500 2,500 - 2,500 Furniture/equipment purchases 14,774 - - -0- - 14,774 Audit - 9,200 - 9,200 - 9,200 Pass-through - - 247,968 247,968 - 247,968 Transfer for match 202,312 - -0- (202,312) -0- Indirect costs 48,648 (435,826) 387,178 (48,648) -0- TOTAL EXPENDITURES 375,190 -0- 1,660,046 1,660,046 211,815 1,823,427 NET REVENUES OVER EXPENDITURES $ 13,225 $ -0- $ 0 $ -0- $ -0- $ 13,225 I . i - 17- MSU WATER RESEARCH- MID-MICHIGAN MID-MICHIGAN MANAGEMENT REGIONAL REGIONAL EDA WATER WATER PLAN FOR PROSPERITY PROSPERITY PLANNING AUTHORITY 2014 AUTHORITY 2015 RED CEDAR GRANT GRANT GRANT 30700) (30800) __ (31100) (31300) (31310) (1400) . i $ - $ - $ - $ - $ - $ 58,429 i 2,112 2,522 6,656 41,422 41,503 - 2,112 2,522 6,656 41,422 41,503 58,429 - - - - - 58,429 2,112 2,522 6,656 41,422 41,503 116,858 , i 925 1,098 2,914 12,327 354 45,018 516 612 1,625 6,872 198 25,098 - - - - 2 6 3 14 2,285 93 - 5 - 121 134 2,769 - - 59 - 4,895 - - 500 - - - - - 232 443 - 22 - - - 630 8,000 8,850 700 - 12,000 - - - 5,000 15,650 - 671 801 2,114 9,029 1,589 36,899 2,112 2,522 6,656 41,422 41,503 116,858 $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- - 19- HUD SUSTAINABLE COMMUNITIES ASSISTANCE TO: REGIONAL SURFACE FTA GRANT STATE MDOT OFFICE OF PLANNING TRANSPORTATION SECTION 5303 PLANNING AND PASSENGER GRANT PROGRAM GRANT FUNDS RESEARCH TRANSPORTATION PROGRAM 32800) (33000) (34000) (3450�_ (35000) TOTAL ' I $ 73,562 $ 170,001 $ 15,200 $ - $ 313,758 $ 948,242 - - 3,800 5,000 - 82,546 - - - - - 426,946 73,562 170,001 19,000 5,000 313,758 1,457,734 31,020 42,488 - - - 202,312 i 104,582 212,489 19,000 5,000 313,758 1,660,046 - 81,438 8,122 2,187 55,658 492,305 - 45,403 4,529 1,220 31,030 274,473 - 53 15 - 525 839 - 2,847 53 5 588 12,212 - 115 - - 985 3,402 - - - - 98 98 - 1,410 242 - 953 11,463 - 1,990 - - 2,387 16,005 290 - - - 2,026 - - - - 232 - 167 - - - 1,267 3,811 - - - 12,090 9 3 - - 33 - - - - - 22 - 506 - - - 1,567 - 656 - - 90 3,610 - 6,554 - - 17,929 67,674 104,582 1,936 - - - 123,082 - 745 - - - 2,500 - - - 160,538 247,968 - 64,559 6,036 1,588 42,977 387,178 104,582 212,489 19,000 5,000 313,758 1,660,046 I - $ -0- $ -0- $ -0- $ -0- $ -0- $ -0- -21 - Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) WELLHEAD. MULTI- MUNICIPALITIES Project period October 1, 2014 through September 30, 2015 MULTI -MUNICIPALITIES - Cash (30500) REVENUES Local Cash received $ 474399 EXPENDITURES Direct costs Salaries $ 20,760 Fringe benefits 11,574 Printing and copying 8 Indirect costs 15,057 TOTAL EXPENDITURES $ 47 399 i i ; I -23- Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) GREATER LANSING REGIONAL COMMITTEE (GLRC) 2015 Project period January 1, 2015 through December 31, 2015 I ' ! VARIOUS MUNICIPALITIES -Cash (30300) I Jan. 1, 2015 1 through Sept. 30, 2015 REVENUES . Local Cash received $ 101,873 Unearned revenue -current year (39,261) Unearned revenue- prior year 30,165 TOTAL REVENUES $ 92,777 EXPENDITURES Direct costs Salaries $ 38,370 Fringe benefits 21,392 Printing and copying 65 Travel -in region 1,038 Travel -out region 634 Computer services 2 Membership dues 65 Special projects 2,548 Indirect costs 28,663 TOTAL EXPENDITURES $ 92,777 i . I I Ii i -25 - Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) MID-MICHIGAN WATER AUTHORITY 2014 Project period January 1, 2014 through December 31, 2014 VARIOUS MUNICIPALITIES -Cash (30700) Jan. 1, 2014 Oct. 1, 2014 Jan. 1, 2014 through through through Sept. 30, 2014 Dec. 31, 2014 Dec. 31, 2014 REVENUES Local Accounts receivable- current year $ - $ 2,112 $ 2,112 Accounts receivable- prior year 1,594 - 1,594 TOTAL REVENUES $ 1,594 $ 2,112 $ 3,706 EXPENDITURES Direct costs Salaries $ 702 $ 925 $ 1,627 Fringe benefits 383 516 899 Postage 7 - 7 Printing and copying 4 - 4 Indirect costs 498 671 1,169 TOTAL EXPENDITURES $ 1,594 $ 2 112 $ 3,706 I -27 - Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) MSU WATER RESEARCH - MANAGEMENT PLAN FOR THE RED CEDAR Project period February 1, 2012 through January 31, 2015 VARIOUS MUNICIPALITIES - Cash (31100) Feb. 1,2012 Oct. 1,2014 Feb. 1, 2012 through through through Sept. 30, 2014 Jan. 31, 2015 Jan. 31, 2015 REVENUES Local Cash received $ 47,092 $ 6,656 $ 53,748 EXPENDITURES Direct costs Salaries $ 20,848 $ 2,914 $ 23,762 Fringe benefits 10,640 1,625 12,265 Printing and copying 49 3 52 Travel - in region 471 - 471 Indirect costs 15,084 2,114 17,198 i TOTAL EXPENDITURES $ 47,092 $ 6,656 $ 53,748 -29- Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) REGIONAL PROSPERITY GRANT Project period June 1, 2014 through December 31, 2014 i VARIOUS MUNICIPALITIES -Cash (31310) i June 1, 2014 October 1, 2014 June 1, 2014 through through through Sept.30, 2014 Dec. 31, 2014 Dec. 31, 2014 REVENUES Local Cash received $ 155,300 $ - $ 155,300 Unearned revenue -current year (41,503) 41,503 -0- TOTAL REVENUES $ 113,797 $ 41,503 $ 155,300 EXPENDITURES Salaries $ 22,805 $ 354 $ 23,159 Fringe benefits 12,453 198 12,651 Telephone 10 - 10 Printing and copying 22 2,285 2,307 Travel -in region 411 134 545 Travel -out region 280 - 280 Computer service - 443 443 Special projects 35,450 8,850 44,300 Consultant fee - 12,000 12,000 Pass-through 26,000 15,650 41,650 Indirect costs 16,366 1,589 17,955 TOTAL EXPENDITURES $ 113,797 $ 41,503 $ 155,300 - 31 - Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) AERIAL PHOTOGRAPHY Project period February 1, 2015 through December 31, 2015 VARIOUS MUNICIPALITIES -Cash (312) Feb. 1, 2015 through Sept. 30, 2015 REVENUES jLocal Cash received $ 169,266 Unearned revenue -current year (106,998) TOTAL REVENUES $ 62,268 EXPENDITURES Pass-through $ 62,268 ' I -33- Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) MDOT GRANT: ASSET MANAGEMENT Project period October 1, 2014 through September 30, 2015 MDOT CONTRACT NO. 2015-00221Z1 (32300) MDOT-$33,786 Cash REVENUES State of Michigan Cash $ 2,399 Accounts receivable 31,247 TOTAL REVENUES $ 33,646 EXPENDITURES Direct costs Salaries $ 11,020 Fringe benefits 6,144 Office supplies 1,988 Travel -in region 140 Travel -out region 30 Special projects 817 Pass-through 4,512 Indirect costs 8,995 TOTAL EXPENDITURES $ 33,646 l , I i i : I - 35- Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) SURFACE TRANSPORTATION PROGRAM GRANT Project period October 1, 2014 through September 30, 2015 ' FHWA CONTRACT NO. 2015-00111Z3 and 2015-001124 32800 FHWA-$273,968 Cash TCRPC- $82,274 Cash REVENUES Federal grant Cash received $ 23,976 Accounts receivable 49,586 TOTAL REVENUES 73,562 OTHER FINANCING SOURCES Operating transfers in Local match 31,020 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 104,582 EXPENDITURES Direct costs Consultants $ 104,582 . I i i -37 - Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) STATEWIDE PLANNING AND RESEARCH Project period October 1, 2014 through September 30, 2015 MDOT CONTRACT NO. 2015-0022IZ3 (34000) FHWA-$15,200 Cash MDOT- $3,800 Cash REVENUES Federal grant Cash received $ 8,111 Accounts receivable 7,089 State of Michigan Cash received 2,028 Accounts receivable 1,772 TOTAL REVENUES $ 19,000 EXPENDITURES Direct costs Salaries $ 8,122 Fringe benefits 4,529 Postage 15 Printing and copying 53 Travel- in region 242 Publications 3 Indirect costs 6,036 TOTAL EXPENDITURES $ 19,000 i i -39- Tri-County Regional Planning Commission SCHEDULE OF PROJECT REVENUES AND EXPENDITURES (UNAUDITED) HUD SUSTAINABLE COMMUNITIES REGIONAL PLANNING GRANT PROGRAM Project period February 1, 2012 through April 30, 2015 HUD COOPERATIVE AGREEMENT NO. MIRIP0056-11 (35000) HUD-$3,000,000 Feb. 1,2012 Oct. 1, 2014 Feb. 1, 2012 through through through Sept. 30, 2014 April 30, 2015 April 30, 2015 REVENUES Federal grant Cash received -current year $ - $ 313,758 $ 313,758 Cash received -prior year 2,079,612 418,371 2,497,983 Accounts receivable- prior year 606,630 (418,371) 188,259 i TOTAL REVENUES $ 2,686,242 $ 313,758 $ 3,000,000 I EXPENDITURES Direct costs Salaries $ 161,163 $ 55,658 $ 216,821 Fringe benefits 85,236 31,030 116,266 Telephone 110 - 110 Postage 2,088 525 2,613 Printing and copying 3,311 588 3,899 Office supplies 3,933 985 4,918 Graphic supplies 718 98 816 Travel -in region 9,712 953 10,665 Travel - out region 9,381 2,387 11,768 Training 845 - 845 Rent of facility/equipment 3,209 - 3,209 Computer services 824 - 824 Subscriptions/publications 161 - 161 Advertising 241 - 241 Membership dues 553 90 643 Special projects 98,801 17,929 116,730 Pass-through 2,171,190 160,538 2,331,728 Indirect costs 134,766 42,977 177,743 TOTAL EXPENDITURES $ 2,686,242 $ 313,758 $ 3,000,000 Ii i I -41 - REGIONAL MDOT GRANT: REGIONAL MSU WATER PROSPERITY FHWA PL ASSET TRANSPORTATION RESEARCH GRANT 2014 FUNDS MANAGEMENT CONTRACT (31100) (31310) (32100) (32300) (32400) $ 53,748 $ 155,300 $ 387,667 $ 33,646 $ 40,100 53,748 155,300 70,375 - - -0- -0- 317,292 33,646 40,100 0% 0% 82% 100% 100% i , I 317,292 33,646 40,100 179,747 2,399 19,934 $ -0- $ -0- $ 137,545 $ 31,247 $ 20,166 i i ill i -43 - HOUSING AND URBAN DEVELOPMENT (35000) $ 3,000,000 3,000,000 100% 3,000,000 2,811,741 $ 188,259 -45- Tri-County Regional Planning Commission ANALYSIS OF INDIRECT COST RATE (UNAUDITED) Year Ended September 30, 2015 Indirect Base Indirect Base Total expenditures $ - $ 2,035,242 Direct expenditures 1,599,416 (1,599,416) Less: j Discretionary funds (4,936) - Special projects (67,674) - Consultant fee (123,082) - Contractual services (2,500) - Furniturelequipment purchases (14,774) - Pass-through (247,968) - Match (202,312) - $ 936,170 $ 435,826 Indirect cost rate (indirect costs as a part of indirect base) 46.55% i I i I I i it -47- Tri-County Regional Planning Commission SCHEDULE OF FRINGE BENEFITS (UNAUDITED) Year Ended September 30, 2015 Social security $ 54,455 Unemployment taxes 4,916 Pension contributions 68,643 Health insurance 242,177 Dental insurance 19,688 Group life insurance 7,694 Employee assistance program 342 Workers compensation insurance 3,134 Fringe benefits miscellaneous 1,093 . i Total fringe benefits $ 402,142 Salaries and wages for the year ended September 30,2015 $ 721,306 I Fringe benefit rate-All employees 55.75% • I , I I , i -48 - FTA PL 2015-00111Z2 (33000) MDOT#2015-00221Z2 (32400) VARIANCE VARIANCE FAVORABLE FAVORABLE BUDGET EXPENDED (UNFAVORABLE) BUDGET EXPENDED (UNFAVORABLE) $ 89,295 $ 69,703 $ 19,592 $ 5,000 $ 6,489 $ (1,489) 97,885 68,704 29,181 19,000 16,954 2,046 3,483 1,033 2,450 500 148 362 44,744 35,678 9,066 10,000 11,300 (1,300) 16,764 9,487 7,277 4,600 4,022 578 22,469 27,884 (5,415) 1,000 1,187 (187) $ 274,640 $ 212,489 $ 62,151 $ 40,100 $ 40,100 $ -0- i 1 - 50 - FHWA-STP#2015-0011/Z3 FHWA-STP#2015-00111Z4 (32800) FHWA-SP&R#2015-0022IZ3 (34000) VARIANCE VARIANCE FAVORABLE FAVORABLE BUDGET EXPENDED (UNFAVORABLE) BUDGET EXPENDED (UNFAVORABLE) $ 274,639 $ 104,582 $ 170,057 $ - $ - $ -0- - - -0- 6,000 - 6,000 -0- - - -0- -0- 6,000 5,436 564 -0- 7,000 13,564 (6,564) , I -0- - - -0- $ 274,639 $ 104,582 $ 170,057 $ 19,000 $ 19,000 $ -0- 1' , i - 52 - Tri-County Regional Planning Commission Lansing, Michigan SUPPLEMENTARY INFORMATION TO FINANCIAL STATEMENTS (FEDERAL AWARDS) September 30, 2015 . l Tri-County Regional Planning Commission TABLE OF CONTENTS September 30, 2015 Page INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 1-2 SUPPLEMENTARY INFORMATION Schedule of Expenditures of Federal Awards 3 Notes to Schedule of Expenditures of Federal Awards 4 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 GOVERNMENTAUDITING STANDARDS 5-6 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 7 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 8 i Principals �,'�i 3511 Coolidge(toad Suite 100 ri Dale J.Abraham, CPA s East Lansing, MI 48823 Michael T. Gaffney, CPA (517) 351-6836 Steven R. Kirinovic, CPA ABldAHAIM GAFFNM P.C. FAX: (517) 351-6837 Aaron M. Stevens, CPA Eric J.Glashouwer, CPA Certified Public Accountants j Alan D. Panter, CPA William 1.Tucker IV, CPA INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 To the Board of Commissioners Tri-County Regional Planning Commission Lansing, Michigan Report on Compliance for Each Major Federal Program We have audited Tri-County Regional Planning Commission's (the Commission) compliance with the types of compliance requirements described in the OMB CircularA•-133 Compliance Supplement that could have a direct and material effect on the Commission's major federal programs for the year ended September 30, 2015. The Commission's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for the Commission's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Nonprofit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Commission's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on the Commission's compliance. Opinion on.Each Major Federal Program In our opinion, Tri-County Regional Planning Commission complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30,2015. Auburn Hills- East Lansing• Grand Rapids-St.Johns - 1 - Report on Internal Control Over Compliance Management of the Commission is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Commission's internal control over compliance with the types of requirements that could have a direct and material effect on the major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly,we do not express an opinion on the effectiveness of the Commission's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions,to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected on a timely basis. A significant deficiency in infernal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133 We have audited the financial statements of the governmental activities and the major fund of the Commission as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Commission's basic financial statements. We issued our report thereon dated November 30, 2015, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for the purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. �i ABRAHAM &GAFFNEY, P.C. Certified Public Accountants November 30, 2015 -2 - Tri-County Regional Planning Commission SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2015 Pass-Through (Memo Only) Federal Grantor/ Pass-Through Grantor CFDA Grantor's Award Prior Years' Program Title Number Number Amount Expenditures Expenditures U.S. DEPARTMENT OF COMMERCE Direct Award Economic Development Administration 11.302 Support for Planning Organizations 06-83-05839 $ 169,095 $ 37,044 $ 58,429 U.S. HOUSING AND URBAN DEVELOPMENT Direct Award Sustainable Communities Regional 14.703 Planning Grant Program MIRIP0056-11 3,000,000 2,685,752 313,758 FEDERAL HIGHWAY ADMINISTRATION Passed Through Michigan Department of Transportation c�} Highway Planning and Construction 20.205 FTA Section 5303 2015-00111Z2 219,711 - 170,001 FHWA 2015-00111Z1 480,181 - 317,292 FHWA 2015-00111Z3 91,751 - 20,691 FHWA 2015-001124 182,217 - 52,871 FHWA 2015-002223 15,200 - 15,200 TOTAL FEDERAL HIGHWAY ADMINISTRATION 989,060 -0- 576,055 TOTAL FEDERAL AWARDS $ 4,158,155 $ 2,722,796 $ 948,242 (a)(c} -3 - Tri-County Regional Planning Commission NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2015 NOTE A: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the Commission and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133,Audits of States, Local Governments, and Nonprofit Organizations. NOTE B: SUMMARY OF SIGNIFICANT EXPLANATIONS OF SCHEDULE The following descriptions identified below as (a) through (d) represent explanations that cross reference to amounts on the Schedule of Expenditures of Federal Awards. (a) The expenditures reported in this schedule are in agreement with the amounts reported in the financial statements and financial reports. The financial reports tested, including claims for advances and reimbursements, were materially correct, complete, accurate, and timely and contain information that is supported by the books and records from which the financial statements have been prepared. (b) Denotes program tested as"major program". I (c) Agrees to total revenues from Federal sources per financial statements. I (d) Of the federal expenditures presented in the schedule, the Commission provided federal awards to subrecipients as follows: Federal Grantor i Pass-Through Grantor/ CFDA Current Year Program Title and Subrecipient Number Expenditures U.S. HOUSING AND URBAN DEVELOPMENT Direct Award Sustainable Communities Regional 14.703 Planning Grant Program Greater Lansing Housing Coalition $ 14,340 Meridian Township 4,000 Michigan Energy Options 28,407 Michigan Fitness Foundation 15,661 Michigan State University 51,916 Mid-Michigan Environmental Action Council 13,274 NorthWest Initiative 4,515 Refugee Development Center 3,000 The Fenner Conservancy 4,000 Arts Council of Greater Lansing 2,500 Greater Lansing Food Bank 3,700 EagleVision Ministries 4,000 Greater Lansing Destination Development Foundation 1,200 Friends of East Lansing Schools 4,000 Westside Commercial Association 4,981 Michigan Recycling Coalition 5,000 Southside Community Center 1,000 i TOTAL U.S. HOUSING AND URBAN DEVELOPMENT $ 165,494 -4- Principals �i�i1 3S 1 1 Coolidge Road Suite 100 Dale J.Abraham, CPA East Lansing, Mf 48823 Michael T. Gaffney,CPA —=i:= {.517) 351-6836 Steven R. Kirinovic, CPA ABRAH'AM &GAFFNEY, P.C. FAX., (S 17) 351-6837 Aaron M. Stevens, CPA Certified Public Accountants Eric J. Glashouwer, CPA Alan D. Panter, CPA William f. Tucker IV, CPA I 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 Governmental 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, 2015, 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, 2015. 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 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. Given these limitations, during the audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 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. Auburn Hills r East Lansing• Grand Rapids-St.Johns -5- 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 Commission'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 Commission's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. ABRAHAM & GAFFNEY, P.C. Certified Public Accountants November 30, 2015 I I I i i I i i - 6- Tri-County Regional Planning Commission SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended September 30,2015 Section I -Summary of Auditor's Results Financial Statements — Type of auditor's report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? Yes X No Significant deficiency(ies) identified? Yes X None reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs: Material weakness(es)identified? Yes X No Significant deficiency(ies)identified? Yes X None reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported with Section 510(a)of Circular A-133? Yes X No Identification of major programs: CFDA Number(s) _ Name of Federal Program or Cluster 20.205 Highway Planning and Construction Dollar threshold used to distinguish between Type A and Type B programs: $300,000 Auditee qualified as low-risk auditee? X Yes No Section II -Financial Statement Findings None noted. Section Ili -Federal Award Findings and Questioned Costs None noted. - 7-