HomeMy WebLinkAbout2024 - Lansing Entertainment and Public Facilities Auth. LEPFA July 2023- June 2024 Auditor's Report LANSING ENTERTAINMENT AND PUBLIC
FACILITIES AUTHORITY
REPORT ON FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024
Manor
Costerisan
TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR'S REPORT.........................................................................................................................................1-3
MANAGEMENT'S DISCUSSION AND ANALYSIS....................................................................................................................4-7
BASICFINANCIAL STATEMENTS...................................................................................................................................................8
Statementof Net Position..............................................................................................................................................................9
Statement of Revenues,Expenses,and Changes in Net Position................................................................................10
Statementof Cash Flows..............................................................................................................................................................11
Notesto Financial Statements................................................................................................................................................12-21
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.....................................................................................................................22-24
2425 E.Grand River Ave.,
(00-pa M a n e r Suite 1,Lansing,MI 48912
2517.323.7500
osterisan0 517.323.6346
INDEPENDENT AUDITOR'S REPORT
The Honorable Mayor,Members of the City Council,and
Members of the Board of Commissioners of the
Lansing Entertainment and Public Facilities Authority
Lansing,Michigan
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the business-type activities and each major fund of
the Lansing Entertainment and Public Facilities Authority (the Authority), a discretely presented component
unit of the City of Lansing, Michigan, as of and for the year ended June 30, 2024, and the related notes to the
financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the business-type activities and each major fund of the Lansing Entertainment and Public
Facilities Authority as of June 30,2024,and the respective changes in financial position and cash flows thereof for
the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in GovernmentAuditing Standards,issued by
the Comptroller General of the United States. Our responsibilities under those standards are further described
in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required
to be independent of the Authority and to meet our other ethical responsibilities,in accordance with the relevant
ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Exclusive Presentation
As discussed in Note 1, the financial statements present only the Authority and do not purport to, and do not
present fairly the financial position of the City of Lansing, Michigan,as of June 30, 2024,and the changes in its
financial position, or where applicable, its cash flows for the years then ended, in conformity with accounting
principles generally accepted in the United States of America.Our opinions are not modified with respect to this
matter.
1
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate,that raise substantial doubt about the Authority's ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement,whether due to fraud or error, and to issue an auditor's report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with generally accepted auditing standards and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that,individually or in the aggregate,they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards,we:
➢ Exercise professional judgment and maintain professional skepticism throughout the audit.
➢ Identify and assess the risks of material misstatement of the financial statements,whether due to fraud
or error,and design and perform audit procedures responsive to those risks. Such procedures include
examining,on a test basis,evidence regarding the amounts and disclosures in the financial statements.
➢ Obtain an understanding of internal control relevant to the audit 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 Authority's internal control. Accordingly,no such opinion is expressed.
➢ Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management,as well as evaluate the overall presentation of the financial
statements.
➢ Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the Authority's ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
2
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis be presented to supplement the basic financial statements. Such information is the
responsibility of management and, 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 Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated December 10, 2024,
on our consideration of the Authority's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts,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 Authority's internal control over financial reporting and compliance.
//v 61
December 10,2024
3
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the Lansing Entertainment and Public Facilities Authority(the"Authority")we offer readers
of the Authority's financial statements this narrative overview and analysis of the financial activities of the
Authority for the fiscal year ended June 30,2024.
Financial Highlights
Total net position $ 5,649,825
Change in total net position 2,663,226
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Authority's basic financial statements.
The basic financial statements are comprised of:
➢ The statement of net position presents information on all of the Authority's assets and liabilities,with the
difference between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the Authority is improving or
deteriorating.
➢ The statement of revenues,expenses, and changes in net position presents information showing how the
Authority's net position changed during the most recent fiscal year. All changes in net position are
reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus,revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods.
➢ The statement of cash flows presents the change in the Authority's cash and cash equivalents for the most
recent fiscal year.
➢ The notes to the financial statements provide additional information that is essential to a full
understanding of the data provided in the basic financial statements.
Financial Analysis
As noted earlier,net position may serve over time as a useful indicator of a government's financial position. In
the case of the Authority,assets exceeded liabilities by$5,649,825 at the close of the most recent fiscal year.
By far the largest portion of the Authority's net position (63.6%) is its unrestricted net position which may be
used to meet the Authority's ongoing obligations to system users and creditors.
Another portion of net position (1.4%) is restricted by contractual agreement to maintain in an event
development cash reserve for Jackson Field to provide a source of monies from which to finance events at the
Jackson Field.
The remaining portion of the net position (35.0%) is its investment in capital assets (e.g., machinery and
equipment, and right to use assets);less any related debt used to acquire those assets that is still outstanding.
The Authority uses these capital assets to provide services;consequently,these assets are not available for future
spending.
At the end of the current fiscal year, the Authority is able to report positive balances in all categories of net
position. The same situation held true for the prior fiscal year.
4
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Lansing Center,Jackson Field, Groesbeck Golf Course and Center Park Productions reported a net position
of$3,291,302,$1,361,966,$849,387 and$147,170,respectively.
Net Position
2024 2023
Assets
Current and other assets $ 7,712,323 $ 5,282,749
Capital assets,net 2,246,864 62,509
Total assets 9,959,187 5,345,258
Current liabilities 4,082,923 2,358,659
Non-Current Liabilities 226,439 -
Total Liabilities 4,309,362 2,358,659
Net Position
Net investment in capital assets 1,976,542 41,944
Restricted 80,000 80,000
Unrestricted 3,593,283 2,864,655
Total net position $ 5,649,825 $ 2,986,599
Change in Net Position
2024 2023
Operating revenues $ 7,394,183 $ 6,503,225
Operating expenses 9,727,637 8,774,515
Operating loss (2,333,454) (2,271,290)
Nonoperating revenues 4,996,680 3,547,276
Change in net position 2,663,226 1,275,986
Net position,beginning of year 2,986,599 1,710,613
Net position,end of year $ 5,649,825 $ 2,986,599
5
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Authority's net position increased by$2,663,226 for fiscal year 2024,compared to an increase of$1,275,986
for fiscal year 2023. Key elements of the 2024 increase include:
➢ Revenues of the Authority increased overall;however,the Lansing Center and Groesbeck Golf Course saw
increases in revenues due to the increased ability to host activities now that the pandemic is in the past
and this fiscal year operated to pre-pandemic activity levels.In year booking has been the driving factor to
increased events at the Lansing Center. Jackson Field is under its normal operating conditions and
continues to see significant increases in operating expenses due to restrictions in funding to maintain the
facility. Deferred maintenance at all facilities caused additional increases in maintenance expenses along
with MLB required upgrades. The return to events at all properties created increases in staffing and
expense for hiring and training staff increased as well. Grant funds help sustain operations while revenues
increased. Continued concerns over the inflation and challenges associated with expenses (healthcare
costs,labor costs,food costs,utilities,etc.)rising and still being able to remain competative in the industry
while trying hard to provide a good product. Concerns over the overall conditions of the Lansing Center,
Jackson Field,and Groesbeck Golf Course still exist and funding is desperately needed to stay up to industry
standards and competitive for business. The substantial increase in the net position is also due to the
Authority being awarded a one time grant of$5,000,000.
Capital Assets
The Authority's investment in capital assets as of June 30, 2024 amounted to $2,246,864 (net of accumulated
depreciation). Total net capital assets increased by$2,184,355. The increase is due to additions for building
improvements and machinery equipment for the stadium and Lansing Center utilizing the grants awarded in the
current year.
Net
Balance Additions/ Balance
June 30,2023 Deletions June 30,2024
Capital assets being depreciated/amortized
Machinery and equipment $ 1,404,502 $ 948,322 $ 2,352,824
Building improvements - 1,032,897 1,032,897
Right to use-machinery and equipment 101,308 184,032 285,340
Total assets being depreciated/amortized 1,505,810 2,165,251 3,671,061
Less accumulated depreciation/amortization
Machinery and equipment (1,360,423) (22,100) (1,382,523)
Building improvements - (25,822) (25,822)
Right to use-machinery and equipment (82,878) 67,026 (15,852)
Total accumulated depreciation/amortization (1,443,301) 19,104 (1,424,197)
Capital assets,net $ 62,509 $ 2,184,355 $ 2,246,864
Additional information on the Authority's capital assets can be found in Note 5 of this report.
6
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
MANAGEMENT'S DISCUSSION AND ANALYSIS
Long-term Obligations
Net
Balance Additions/ Balance
July 1,2023 Deletions June 30, 2024
Business-type Activities
Direct borrowings and direct placements $ 20,565 $ 249,757 $ 270,322
Additional information on the Authority's long-term obligation can be found in Note 6 of this report.
Economic Factors Affecting Next Year's Operations
The Authority is still concerned about several economic factors for all LEPFA managed properties heading into
FY 2024-25. Consumer spending is concerning due to uncertainty of the economy and inflation. Continued
increases to expenses at the Authority include costs of goods, labor, utilities, and employee benefits. Staffing
shortages continue to be a concern heading into the upcoming fiscal year.
The Authority believes that events will continue to be held and plans to focus on strategic plans that involve
growth and investment in the facilities,events,and staff. There is a strong schedule of activity at all properties,
and the Authority is focused on overcoming the challenges with staffing and increased costs. There is a focus on
evolving food service operations to help offset some of these challenges while still delivering great service to its
customers. The cycle of events in the coming year will play a large factor in the Authority's overall position as it
typically sees a three-year cycle with some of its events.
Requests for Information
This financial report is designed to provide a general overview of the Authority's finances for all those with an
interest in the Authority's finances. Questions concerning any of the information provided in this report or
requests for additional financial information should be addressed to the Lansing Entertainment and Public
Facilities Authority,333 E.Michigan Avenue,Lansing,Michigan 48933.
7
BASIC FINANCIAL STATEMENTS
8
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
STATEMENT OF NET POSITION
JUNE 30,2024
Total
Lansing Jackson Groesbeck Center Park Business-type
Center Field Golf Course Productions Activities
ASSETS
Current Assets
Cash and cash equivalents $ 2,634,806 $ 211,339 $ 855,644 $ 26,808 $ 3,728,597
Cash and cash equivalents-restricted 1,576,189 80,000 - - 1,656,189
Receivables,net 1,324,286 713,664 5,402 121,268 2,164,620
Due from other funds - 58,531 8,676 - 67,207
Prepaid items 4,717 3,944 862 9,523
Inventory 63,128 - 23,059 - 86,187
Total Current Assets 5,603,126 1,067,478 893,643 148,076 7,712,323
Noncurrent Assets
Capital assets,net 895,660 1,029,528 321,676 2,246,864
TOTAL ASSETS 6,498,786 2,097,006 1,215,319 148,076 9,959,187
LIABILITIES
Current Liabilities
Accounts payable 583,846 734,321 28,410 906 1,347,483
Accrued liabilities 488,299 719 13,281 - 502,299
Due to other funds 67,207 - - 67,207
Current portion of long-term obligations - 43,883 43,883
Unearned revenue 2,068,132 - 53,919 - 2,122,051
Total Current Liabilities 3,207,484 735,040 139,493 906 4,082,923
Noncurrent Liabilities
Long-term obligations,net of current portion - - 226,439 - 226,439
TOTAL LIABILITIES 3,207,484 735,040 365,932 906 4,309,362
NET POSITION
Net investment in capital assets 895,660 1,029,528 51,354 - 1,976,542
Restricted for Jackson Field events - 80,000 - - 80,000
Unrestricted 2,395,642 252,438 798,033 147,170 3,593,283
TOTAL NET POSITION $ 3,291,302 $ 1,361,966 $ 849,387 $ 147,170 $ 5,649,825
See accompanying notes to financial statements.
9
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
YEAR ENDED JUNE 30,2024
Total
Lansing Jackson Groesbeck Center Park Business-type
Center Field Golf Course Productions Activities
OPERATING REVENUES
Building rental $ 886,781 $ $ $ $ 886,781
Security 79,265 79,265
Food services 3,478,979 122,590 3,601,569
Equipment rental 995,335 228,646 1,223,981
Box office 51,731 - 51,731
Labor/service 436,868 436,868
Trade show utilities 110,967 - 110,967
Greens fees - 581,459 581,459
Sponsorships 209,063 - 209,063
Other 176,975 4,181 31,343 212,499
TOTAL OPERATING REVENUES 6,425,964 4,181 964,038 7,394,183
OPERATING EXPENSES
Personnel services 2,460,017 172,115 497,386 3,129,518
Food and beverage 1,612,765 - 73,913 1,686,678
Communications 65,554 5,972 13,946 85,472
Rents 47,383 - 49,435 96,818
Professional services 775,853 16,679 7,116 799,648
Utilities 1,033,784 170,516 26,679 1,230,979
Marketing 196,389 - 13,335 209,724
Repairs and maintenance 616,881 72,642 71,540 761,063
Supplies and materials 138,020 10,375 84,275 232,670
Insurance 117,293 48,689 15,309 181,291
Events 872,127 - - 872,127
Security 145,028 - - 145,028
Depreciation/amortization 13,748 28,377 40,079 82,204
Bad debt expense 3,385 - - - 3,385
Other 158,813 51,911 - 308 211,032
TOTAL OPERATING EXPENSES 8,257,040 577,276 893,013 308 9,727,637
OPERATING INCOME(LOSS) (1,831,076) (573,095) 71,025 (308) (2,333,454)
NONOPERATING REVENUES
Intergovernmental 909,034 1,072,152 - - 1,981,186
Annual operating subsidy-City of Lansing 1,297,555 679,476 96,383 2,073,414
Pass-through of hotel/motel tax collections from
Greater Lansing Convention and Visitors Bureau 942,080 - - 942,080
TOTAL NONOPERATING REVENUES 3,148,669 1,751,628 96,383 4,996,680
CHANGE IN NET POSITION 1,317,593 1,178,533 167,408 (308) 2,663,226
Net Position,beginning of year 1,973,709 183,433 681,979 147,478 2,986,599
Net Position,end of year $ 3,291,302 $ 1,361,966 $ 849,387 $ 147,170 $ 5,649,825
See accompanying notes to financial statements.
10
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30,2024
Total
Lansing Jackson Groesbeck Center Park Business-type
Center Field Golf Course Productions Activities
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers $ 8,432,120 $ 39,897 $ 948,368 $ 5,952 $ 9,426,337
Cash payments for goods and services (5,776,630) (353,757) (370,469) (308) (6,501,164)
Cash payments to employees (2,435,193) (172,115) (488,411) - (3,095,719)
Cash receipts(payments)for interfund services 583,544 (180,208) (403,336) -
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES 803,841 (666,183) (313,848) 5,644 (170,546)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Cash transfers from the City of Lansing 1,297,555 679,476 96,383 - 2,073,414
Cash transfers from the Convention and Visitors Bureau 942,080 - - 942,080
Intergovernmental 909,034 539,831 - 1,448,865
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES 3,148,669 1,219,307 96,383 4,464,359
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES
Payments related to lease payable - - (35,583) (35,583)
Payments for acquisition of capital assets (902,082) (500,576) (46,240) (1,448,898)
NET CASH(USED)BY CAPITAL
AND RELATED FINANCING ACTIVITIES (902,082) (500,576) (81,823) (1,484,481)
NET INCREASE(DECREASE)IN CASH
AND CASH EQUIVALENTS 3,050,428 52,548 (299,288) 5,644 2,809,332
Cash and cash equivalents,beginning of year 1,160,567 238,791 1,154,932 21,164 2,575,454
Cash and cash equivalents,end of year $ 4,210,995 $ 291,339 $ 855,644 $ 26,808 $ 5,384,786
Cash and cash equivalents $ 2,634,806 $ 211,339 $ 855,644 $ 26,808 $ 3,728,597
Cash and cash equivalents-restricted 1,576,189 80,000 1,656,189
Total cash and cash equivalent per
statement of cash flows $ 4,210,995 $ 291,339 $ 855,644 $ 26,808 $ 5,384,786
Reconciliation of operating income(loss)to net cash
provided(used)by operating activities
Operating income(loss) $ (1,831,076) $ (573,095) $ 71,025 $ (308) (2,333,454)
Adjustments to reconcile operating income(loss)to
net cash provided(used)by operating activities
Depreciation/amortization 13,748 28,377 40,079 - 82,204
(Increase)/decreasein:
Accounts receivable 412,517 35,716 (3,701) 5,952 450,484
Due from other funds 516,337 (58,531) (8,676) - 449,130
Prepaid items 7,361 (137) 8,146 15,370
Inventory 10,125 - (13,030) (2,905)
Increase/(decrease)in:
Accounts payable (10,841) 23,164 (10,037) 2,286
Accrued liabilities 24,824 - 8,975 33,799
Due to other funds 67,207 (121,677) (394,660) (449,130)
Unearned revenue 1,593,639 (11,969) - 1,581,670
NET CASH PROVIDED(USED)BY
OPERATING ACTIVITIES $ 803,841 $ (666,183) $ (313,848) $ 5,644 $ (170,546)
SCHEDULE OF NON-CASH CAPITAL AND
RELEATED FINANCING ACTIVITIES
Purchase of capital assets on account $ $ (532,321) $ $ $ (532,321)
Subscription-based IT arrangement inflows 285,340 285,340
Subscription-based IT arrangement outflows - (285,340) (285,340)
Purchase of capital assets on account $ $ (532,321) $ $ $ (532,321)
See accompanying notes to financial statements.
11
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 1-DESCRIPTION OF AUTHORITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting_Entity
The Lansing Entertainment and Public Facilities Authority(the"Authority")was established under the charter
of the City of Lansing in February 1996,replacing the former Greater Lansing Convention/Exhibition Authority.
The Authority was established to oversee the management and operations of the Lansing Center,Jackson Field,
and Groesbeck Golf Course under an agreement with the City of Lansing.
The Authority is chartered as a building authority under the provisions of Act 31,Public Acts of Michigan,1948.
In the event of dissolution or termination of the Authority,all assets and rights of the Authority shall revert to
the City of Lansing. The Authority's Board of Commissioners consists of nine members appointed by the Mayor
of the City of Lansing and approved by the City Council,and three ex-officio members.
Center Park Productions,a not-for-profit entity,was organized to perform activities in support and furtherance
of the purposes of its sole member, Lansing Entertainment and Public Facilities Authority, and is therefore
reported as a blended component unit of the Authority. The Entity's Board of Directors consists of six members
appointed by the Board of Directors of the Authority. Center Park Productions is presented in the accompanying
financial statements on its fiscal year end of December 31.
The accompanying financial statements present the financial position and results of operations of the Authority.
They do not purport to,and do not present fairly,the net position of the City of Lansing,Michigan and changes
in its net position or cash flows in conformity with accounting principles generally accepted in the United States
of America. The Authority is a discretely presented component unit of the City of Lansing.
Measurement Focus.Basis of Accounting.and Basis of Presentation
The proprietary fund financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability
is incurred,regardless of the timing of related cash flows.
The financial statements present the Authority's individual major funds. The major individual enterprise funds
are reported as separate columns in the financial statements. The Authority reports the Lansing Center,Jackson
Field,Groesbeck Golf Course,and Center Park Productions enterprise funds as major funds. Each fund accounts
for the activities of its respective facility/event.
Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenues
and expenses generally result from providing services and producing and delivering goods in connection with
an enterprise fund's principal ongoing operations. The principal operating revenues of the enterprise funds are
charges to customers for facility rentals, sales, and services. Operating expenses for enterprise funds include
the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and
expenses not meeting this definition are reported as nonoperating revenues and expenses. Also with this
measurement focus, all assets, deferred outflows of resources, liabilities, and deferred inflows of resources
associated with the operation of this fund are included on the Statement of Net Position. Fund equity (i.e.,net
position) is segregated into net investment in capital assets,restricted,and unrestricted components.
12
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 1-DESCRIPTION OF AUTHORITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
Assets.Liabilities.and Equity
Deposits and Investments
The Authority s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term
investments with original maturities of three months or less from the date of acquisition. State statutes
authorize governments to deposit in the accounts of federally insured banks,credit unions,and savings and loan
associations,and to invest in obligations of the U.S.Treasury,certain commercial paper,repurchase agreements,
bankers'acceptances,and mutual funds composed of otherwise legal investments.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of
the fiscal year are referred to as either"due to/from other funds" (i.e.,the current portion of interfund loans).
Other receivables,generated in the normal course of providing services to customers,are shown net of doubtful
accounts where applicable. Payables are related to amounts due and payable to vendors at year-end for
liabilities incurred and paid for subsequent to year-end.Accrued liabilities include wages payable,payroll taxes
payable,insurance payable,and benefits payable.
Inventory and Prepaid Items
Inventory is valued at cost using the first-in/first-out(FIFO) method. Certain payments to vendors reflect costs
applicable to future accounting periods and are recorded as prepaid items.
Capital Assets
Capital assets are limited to equipment,building improvements,and right to use assets. Equipment is stated at
cost and depreciated using the straight-line method over the estimated useful lives of the assets ranging from
three to ten years. Right to use assets of the Authority are amortized using the straight-line method over the
shorter of the lease period or the estimated useful lives,which is three years. Capital assets are defined by the
Authority as assets with an initial,individual cost of more than$500 and an estimated useful life of three years.
Facilities managed by the Authority are owned by the City of Lansing and,as such,the carrying values of these
properties are reflected in the City's financial statements. The costs of normal maintenance and repairs that do
not add to the value of the asset or materially extend asset lives are not capitalized.
Unearned Revenue
Unearned revenue consists of amounts received prior to the delivery of goods/service or expenditure for
allowable costs. Unearned revenue also consists of funds received from state government for a grant where
funds were received but expenditures were not allocated in order to recognize the full amount of grant funds
received.
Cash and Cash Equivalent Reserves
Under the terms of the Authority's operating agreement with the City of Lansing, the Authority is required to
restrict$50,000 annually for capital improvements and/or replacements. Any such monies unexpended shall
be carried forward to future years. For the year ended June 30,2024,all such restricted monies were expended
on capital improvements,leaving a zero balance in restricted assets for capital improvements at year end.
13
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 1-DESCRIPTION OF AUTHORITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
Assets.Liabilities.and Equity_(continuedl
Cash and Cash Equivalent Reserves(continued)
Under an amendment to the operating agreement with the City of Lansing, the Authority is also required to
maintain an event development cash reserve fund for Jackson Field to provide a source of monies from which to
finance events at the Jackson Field. The fund was established by an initial contribution from the City and may
be increased up to certain limits by the amount of any profits earned from such events. Restricted assets for
event development amounted to $80,000 at June 30, 2024. An equal amount of net position is reported as
restricted on the statement of net position.
In July 2023, the Authority received a $6.5 million grant from the State of Michigan intended to be used for
upgrades to the Authority's facilities with $5.0 million of the grant to be allocated to facility upgrades at the
Lansing Center and $1.5 million being allocated to facility upgrades at Jackson Field. Restricted assets for the
facility upgrades to the Lansing Center amounted to$1,576,189 as of June 30,2024.
The Authority's Board of Commissioners has also established a cash reserve account to ensure reasonable
liquidity for Lansing Center operations. The balance of this cash reserve as of June 30,2024 was$1,345,625 and
has been formally set aside by the Board of Commissioners as designated for the above purpose. Generally,the
reserve is intended to provide up to 60 days of operating cash. The account is adjusted annually for the prior
year operating results.
Leases
Lessee: The Authority is a lessee for noncancelable leases of equipment. The Authority recognizes a lease
liability and an intangible right-to-use lease asset in the statement of net position. The Authority recognizes
lease liabilities with an initial, individual value that it considers significant to the statement of net position,or
with annual lease payments that are considered significant to the fund in which they are accounted for.
At the commencement of a lease, the Authority initially measures the lease liability at the present value of
payments expected to be made during the lease term. Subsequently,the lease liability is reduced by the principal
portion of lease payments made. The leased asset is initially measured as the initial amount of the lease liability,
adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs.
Subsequently,the leased asset is amortized on a straight-line basis over its useful life.
Key estimates and judgements related to leases include how the Authority determines (1) the discount rate it
uses to discount the expected lease payments to present value, (2)lease term,and (3)lease payments.
➢ The Authority uses the interest rate charged by the lessor as the discount rate. When the interest rate
charged by the lessor is not provided,the Authority generally uses its estimated incremental borrowing
rate as the discount rate for leases.
➢ The lease term includes the noncancelable period of the lease. Lease payments included in the
measurement of the lease liability are composed of fixed payments and purchase option price that the
Authority is reasonably certain to exercise.
14
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -DESCRIPTION OF AUTHORITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued)
Leases(continued)
The Authority monitors changes in circumstances that would require a remeasurement of its leases and will
remeasure the leased assets and liability if certain changes occur that are expected to significantly affect the
amount of the lease liability.
Leased assets are reported with other capital assets and lease liabilities are reported with long-term obligations
on the statement of net position.
NOTE 2 -DEPOSITS AND INVESTMENTS
In accordance with Michigan Compiled Laws,the Authority is authorized to invest in the following investment
vehicles:
a. Bonds,securities,and other obligations of the United States or an agency or instrumentality of the United
States.
b. Certificates of deposit,savings accounts,deposit accounts,or depository receipts of a State or nationally
chartered bank or a State or Federally chartered savings and loan association, savings bank, or credit
union whose deposits are insured by an agency of the United States government and which maintains a
principal office or branch office located in this State under laws of this State or the United States, but
only if the bank,savings and loan association,savings bank or credit union is eligible to be a depository
of surplus funds belonging to the State under Section 6 of 1855 PA 105,MCL 21.146.
c. Commercial paper rated at the time of purchase within the three highest classifications established by
not less than two standard rating services, and which matures more than 270 days after the date of
purchase.
d. The United States government or Federal agency obligations repurchase agreements.
e. Bankers'acceptances of United States Banks.
f. Mutual funds composed of investment vehicles, which are legal for direct investment by local units of
government in Michigan.
15
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 2 -DEPOSITS AND INVESTMENTS (continued)
A reconciliation of cash and cash equivalents as shown on the statement of net position follows:
Statement of net position
Cash and cash equivalents $ 3,728,597
Cash and cash equivalents-restricted 1,656,189
Total $ 5,384,786
Deposits
Bank deposits-checking and savings accounts $ 5,355,671
Cash on hand 29,115
Total $ 5,384,786
Interest Rate Risk
State law limits the allowable investments and the maturities of some of the allowable investments as identified
in the summary of significant accounting policies. The Authority's investment policy does not have specific limits
in excess of state law on investment maturities as a means of managing its exposure to fair value losses arising
from increasing interest rates.
Credit Risk
State law limits investments to specific government securities, certificates of deposits and bank accounts with
qualified financial institutions, commercial paper with specific maximum maturities and ratings when
purchased,bankers'acceptances of specific financial institutions, qualified mutual funds and qualified external
investment pools as identified in the list of authorized investments in the summary of significant accounting
policies. The Authority's investment policy does not have specific limits in excess of state law on investment
credit risk.
Custodial Credit Risk-Deposits
Custodial credit risk is the risk that in the event of a bank failure,the Authority's deposits may not be returned.
State law does not require,and the Authority does not have a policy for,deposit custodial credit risk. As of year
end, $5,468,369 of the Authority's bank balance of$5,718,369 was exposed to custodial credit risk because it
was uninsured and uncollateralized.
The Authority's investment policy does not specifically address this risk, although the Authority believes that
due to the dollar amounts of cash deposits and the limits of FDIC insurance, it is impractical to insure all bank
deposits. As a result,the Authority evaluates each financial institution with which it deposits Authority funds
and assesses the level of risk of each institution; only those institutions with an acceptable estimated risk level
are used as depositories.
16
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 3 -TRANSACTIONS WITH THE CITY OF LANSING
For the year ended June 30, 2024,the City of Lansing provided annual operating subsidies to the Authority in
the amount of$2,073,414 for the Lansing Center,Jackson Field,and Groesbeck Golf Course Funds.
NOTE 4-RECEIVABLES
Receivables are composed entirely of amounts due from customers (net of an allowance for doubtful accounts
in the amount of$25,280) and due from other governmental units. Accounts receivable as of June 30, 2024,
were as follows:
Accounts receivable,net $ 1,457,458
Accounts receivable- Due from other governmental units 707,162
Total receivables $ 2,164,620
NOTE 5 -CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2024,was as follows:
Balance Balance
July 1,2023 Additions Deletions June 30,2024
Capital assets being depreciated/amortized
Machinery and equipment $ 1,404,502 $ 948,322 $ $ 2,352,824
Building improvements - 1,032,897 1,032,897
Right to use-machinery and equipment 101,308 285,340 (101,308) 285,340
Total assets being depreciated/amortized 1,505,810 2,266,559 (101,308) 3,671,061
Less accumulated depreciation/amortization
Machinery and equipment (1,360,423) (22,100) (1,382,523)
Building improvements (25,822) (25,822)
Right to use-machinery and equipment (82,878) (34,282) 101,308 (15,852)
Total accumulated depreciation/amortization (1,443,301) (82,204) 101,308 (1,424,197)
Capital assets,net $ 62,509 $ 2,184,355 $ - $ 2,246,864
NOTE 6-LONG-TERM OBLIGATIONS
The following is a summary of long-term obligations for the Authority for the year ended June 30,2024:
Amounts
Balance Balance Due Within
July 1,2023 Additions Deletions June 30,2024 One Year
Business-type Activities
Direct borrowings and
direct placements $ 20,565 $ 285,340 $ (35,583) $ 270,322 $ 43,883
17
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 6-LONG-TERM OBLIGATIONS (continued)
Long-term obligations at June 30,2024 are comprised of the following issues:
Direct Borrowings and Direct Placements
$239,355 Golf Cart lease dated April 2024, due in installments of$7,338 through
October 2029,with imputed interest of 3.5%,payable six times per year. $ 226,757
$45,985 Golf Cart lease dated April 2024, due in installments of $1,410 through
October 2029,with imputed interest of 3.5%,payable six times per year. 43,565
$ 270,322
The Authority's outstanding notes from direct borrowings and direct placements related to business-type activities
of$270,322 contains provisions that in an event of default, either by (1) unable to make principal or interest
payments(2)false or misrepresentation is made to the lender(3)become insolvent or make an assignment for the
benefit of its creditors, or (4) if the lender at any time in good faith believes that the prospect of payment of any
indebtedness is impaired, the outstanding amounts, including accrued interest become immediately due and
payable.
The annual requirements for long-term obligations outstanding as of June 30,2024,are as follows:
Direct Borrowings and
Year Ending Direct Placements
June 30, Principal Interest
2025 $ 43,883 $ 8,607
2026 45,441 7,046
2027 47,061 5,430
2028 48,734 3,757
2029 50,468 2,021
Thereafter 34,735 253
$ 270,322 $ 27,114
18
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 7-INTERFUNDS
Short-term interfund receivables and payables are considered due to and due from other funds. These amounts
due from and to other funds at year-end are as follows:
Due From Due To
Other Funds Other Funds
Lansing Center Fund $ - $ 67,207
Jackson Field Fund 58,531 -
Groesbeck Golf Course Fund 8,676 -
$ 67,207 $ 67,207
The outstanding balances between funds results mainly from the time lag between the dates that(1) interfund
goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the
accounting system,and(3)payments between funds are made.
NOTE 8-DEFINED CONTRIBUTION PENSION PLAN
The Authority has a defined contribution pension plan covering substantially all full-time employees who have
completed 120 days of employment. The Authority contributes 12% of participating employees' annual
compensation to the plan. Effective January 1, 2003, employees are required to contribute 7.5% of covered
wages as defined in the plan; prior to that date, no employee contributions to this plan were required. Such
current employee contributions are in lieu of federal social security participation. Plan provisions and
contribution requirements are established and may be amended by the Authority's Board of Commissioners.
Employee contributions for the year ended June 30, 2024 were$338,799. Employer contributions for the year
ended June 30,2024 were$240,548. At June 30,2024,there were 39 employees participating in the plan.
NOTE 9-RISK MANAGEMENT
The Authority is exposed to various risks of loss including losses related to issues of cyber security, liability,
liquor liability, flood, inland marine, directors' and officers' liability, property, employee bonding, auto, crime,
and worker' compensation which is covered through the Authority's insurance policies. The Authority carries
commercial insurance to cover these risks. Settled claims relating to the commercial insurance have not
exceeded the amount of insurance coverage during the past three years.
NOTE 10- UPCOMING ACCOUNTING PRONOUNCEMENTS
In June 2022,the GASB issued Statement No.101,Compensated Absences. This Statement requires that liabilities
for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used
but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has
not been used if(a)the leave is attributable to services already rendered, (b)the leave accumulates,and(c)the
leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means.
This Statement also establishes guidance for measuring a liability for leave that has not been used, generally
using an employee's pay rate as of the date of the financial statements. The Authority is currently evaluating the
impact this standard will have on the financial statements when adopted during the 2024-2025 fiscal year.
19
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 10-UPCOMING ACCOUNTING PRONOUNCEMENTS(continued)
In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. This Statement requires a
government to assess whether a concentration or constraint makes the government vulnerable to the risk of a
substantial impact. Additionally, this Statement requires a government to assess whether an event or events
associated with a concentration or constraint that could cause the substantial impact have occurred,have begun
to occur,or are more likely than not to begin to occur within 12 months of the date the financial statements are
issued. If a government determines that those criteria for disclosure have been met for a concentration or
constraint,it should disclose information in notes to financial statements in sufficient detail to enable users of
financial statements to understand the nature of circumstances disclosed and the government's vulnerability to
the risk of substantial impact. The Authority is currently evaluating the impact this standard will have on the
financial statements when adopted during the 2024-2025 fiscal year.
In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. This Statement
establishes new accounting and financial reporting requirements - or modifies existing requirements - related
to the following:
a. Management's discussion and analysis (MD&A);
i. Requires that the information presented in MD&A be limited to the related topics discussed in
five specific sections:
1) Overview of the Financial Statements,
2) Financial Summary,
3) Detailed Analyses,
4) Significant Capital Asset and Long-Term Financing Activity,
5) Currently Known Facts,Decisions,or Conditions;
ii. Stresses detailed analyses should explain why balances and results of operations changed rather
than simply presenting the amounts or percentages by which they changed;
iii. Removes the requirement for discussion of significant variations between original and final
budget amounts and between final budget amounts and actual results;
b. Unusual or infrequent items;
c. Presentation of the proprietary fund statement of revenues,expenses,and changes in fund net position;
i. Requires that the proprietary fund statement of revenues, expenses, and changes in fund net
position continue to distinguish between operating and nonoperating revenues and expenses
and clarifies the definition of operating and nonoperating revenues and expenses;
ii. Requires that a subtotal for operating income(loss)and noncapital subsidies be presented before
reporting other nonoperating revenues and expenses and defines subsidies;
d. Information about major component units in basic financial statements should be presented separately in
the statement of net position and statement of activities unless it reduces the readability of the statements
in which case combining statements of should be presented after the fund financial statements;
e. Budgetary comparison information should include variances between original and final budget amounts
and variances between final budget and actual amounts with explanations of significant variances
required to be presented in the notes to RSI.
The Authority is currently evaluating the impact this standard will have on the financial statements when
adopted during the 2025-2026 fiscal year.
20
LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY
NOTES TO FINANCIAL STATEMENTS
NOTE 10-UPCOMING ACCOUNTING PRONOUNCEMENTS (continued)
In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This Statement
requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required
by Statement No.34. Lease assets recognized in accordance with Statement No.87,Leases,and intangible right-
to-use assets recognized in accordance with Statement No.94,Public-Private and Public-Public Partnerships and
Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the
capital assets note disclosures. Subscription assets recognized in accordance with Statement No. 96,
Subscription-based Information Technology Arrangements,also should be separately disclosed. In addition,this
Statement requires intangible assets other than those three types to be disclosed separately by major class. This
Statement also requires additional disclosures for capital assets held for sale. The Authority is currently
evaluating the impact this standard will have on the financial statements when adopted during the 2025-2026
fiscal year.
21
2425 E.Grand River Ave.,
(00-pa M a n e r Suite 1,Lansing,MI 48912
2517.323.7500
osterisan0 517.323.6346
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
The Honorable Mayor,Members of the City Council,and
Members of the Board of Commissioners of the
Lansing Entertainment and Public Facilities Authority
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 GovernmentAuditing Standards issued by the Comptroller
General of the United States,the financial statements of the business-type activities and each major fund of Lansing
Entertainment and Public Facilities Authority(the Authority),as of and for the year ended June 30,2024,and the
related notes to the financial statements,which collectively comprise Lansing Entertainment and Public Facilities
Authority's basic financial statements and have issued our report thereon dated December 10,2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements,we considered the Authority's internal control
over financial reporting (internal control) as a basis for designing 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 Authority's internal control. Accordingly,we do not express an
opinion on the effectiveness of the Authority'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.We
consider the deficiency described below to be a material weakness.
2024-001 MATERIAL JOURNAL ENTRIES PROPOSED BY AUDITORS
Condition: Material journal entries to properly adjust capital assets and related depreciation/amortization,
unearned revenues, and grant related revenues and expenses were proposed by the auditors. These entries
were either prepared by the auditors and provided to management, who agreed to them and were
subsequently recorded in the Authority's general ledger or was brought to the attention of management that
an entry was needed. A similar issue was noted and reported last year as 2023-001.
22
2024-001 MATERIAL JOURNAL ENTRIES PROPOSED BY AUDITORS (continuedl
Criteria: Management is responsible for establishing,maintaining,and monitoring internal controls,and for
the fair presentation in the financial statements of financial position,results of operations, and cash flows
(where applicable),including the recording of all appropriate journal entries so that the trial balances,from
which the audited financial statements are prepared, reflect amounts that are in conformity with U.S.
generally accepted accounting principles.
Cause: These misstatements were not identified as part of the Authority's internal control procedures.
Effect: Without the recording of these journal entries the financial statements would have been materially
misstated.
Recommendation: We recommend that the Authority take steps to ensure that material journal entries are
not necessary at the time future audit analysis is performed.
Corrective Action Response: The Authority strives to perform necessary material journal entry adjustments
prior to fiscal year end. The Authority will work to establish a policy to ensure all material journal entries
are recorded prior to the commencement of audit procedures in future years.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority'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 the following instance of noncompliance or other matters that is required to be reported
under Govern men tAuditing Standards:
2024-002 SALES TAX PAYABLE TO THE DEPARTMENT OF TREASURY
Condition: During our testing of accounts payable, we noted instances in which the Authority did not file
returns and remit sales tax to the Department of Treasury within the required number of days following the
last day of the month on which the sale was incurred.
Criteria: The General Sales Tax Act, Act 167 of 1933, MCL 205.56 (1), provides that each taxpayer, on or
before the twentieth day of each month shall make out a return for the preceding month on a form prescribed
by the department showing the entire amount of all sales and gross proceeds of his or her business, the
allowable deductions, and the amount of tax for which he or she is liable.The taxpayer shall also transmit
the return,together with a remittance for the amount of the tax,to the department on or before the twentieth
day of that month.
Cause: Disbursements were not made within the twentieth day of the month subsequent to the month that
the sale was incurred.
Effect:The Authority is holding onto funds owed to the Department of Treasury longer than they are allowed
by state statute.
Recommendation: We recommend that the Authority take steps to ensure that sales taxes are remitted to
the Department of Treasury within the proper number of days as required by the General Sales Tax Act.
Corrective Action Response: The Authority has taken steps to make sure sales tax are remitted timely as
required to the Department of Treasury.
23
Authority's Response to Findings
GovernmentAuditing Standards requires the auditor to perform limited procedures on the Authority's response
to the findings identified in our audit and described above. The Authority's responses were not subjected to the
other auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on the response.
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.
ma'-� ;>e---
December 10,2024
24