Lanark Fire Protection District Lanark, Illinois

Transcription

1 Lanark Fire Protection District Lanark, Illinois Annual Financial Report Year Ended April 30, 2016

2 Lanark Fire Protection District Year Ended April 30, 2016 Table of Contents Independent Auditor s Report 1-2 Registration Requirements 3-8 Financial Statements Financial Statements 9-12 Notes to Financial Statements Other Information Statement of Indebtedness 19 Debt Limitations and Future Debt 20 Pension Funds/Retirement Benefits 21 Capital Outlay 22 Explanation or Comments 23 CPA Information 24

3 Independent Auditor s Report Board of Trustees Lanark Fire Protection District Lanark, Illinois Report on the Financial Statements We have audited the accompanying regulatory basis financial statements of Lanark Fire Protection District, Illinois (the District), which comprise the Statement of Financial Position cash basis as of April 30, 2016, and the related Statement of Revenues and Receipts, Disbursements, Expenditures and Expenses cash basis, and Fund Balances and Other Financing Sources (Uses) cash basis for the year then ended, and the related notes to the financial statements. Management Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the financial reporting provisions of the State of Illinois Comptroller. Management is also responsible 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. Auditor s Responsibility Our responsibility is to express an opinion 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic 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. 1

4 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described in Note 1, the financial statements are prepared by the District, on the cash basis of the financial reporting provisions of the State of Illinois Comptroller, which is a basis of accounting other than accounting principles generally accepted in the United States of America, to meet the requirements of the State of Illinois Comptroller. The effects on the financial statements of the variances between the regulatory basis of accounting described in Note 1 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material. Adverse Opinion on U.S. Generally Accepted Accounting Principles In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the District as of April 30, 2016, and the respective changes in financial position for the year then ended. Unmodified Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to above present fairly, in all material respects, the regulatory basis financial position of the District as of April 30, 2016, and the changes in regulatory basis financial position for the year then ended in accordance with the financial reporting provisions of the State of Illinois Comptroller, as described in Note 1. Other Matters Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District s financial statements. The government s registration requirements on pages 3 8 and the additional schedules listed in the table of contents as other information, pages 19-24, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such 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 it. Freeport, Illinois December 13,

5 STATE OF ILLINOIS COMPTROLLER SUSANA A. MENDOZA DO NOT SEND THIS PAPER COPY - THIS IS YOUR COPY. MAKE SURE YOU HAVE CLICKED THE SUBMIT BUTTON IN THE COMPTROLLER CONNECT PROGRAM. THIS WILL PROVIDE THE COMPTROLLER'S OFFICE WITH A COPY OF YOUR ANNUAL FINANCIAL REPORT. FY 2016 Annual Financial Report Special Purpose Long Form CCIF Copy - 12/13/2016 1:21:04 PM Unit Name : Lanark Fire Protection District County : Carroll Unit Code : 008/020/06 I attest that, to the best of my knowledge, this report represents a complete and accurate statement of the financial position, the Contact Information, the TIF status, the FEIN status, the Total Appropriations, and the Legal Debt Limitation of Lanark Fire Protection District as of the end of this fiscal year. Written signature of government official Connie Knutti, Chairperson Please Sign : Date : 3

6 Unit Name : Lanark Fire Protection District Unit Code : 008/020/06 Please be sure to fill out this section accurately. The information you provide below is (1) our primary way of contacting your government, (2) the information we supply to external agencies, and (3) is the name and title we will list on our website. This section should NOT contain ANY of your Accounting Professional's information. STEP 1: ENTER CONTACT INFORMATION Is the following information correct and complete? Yes No A. Contact Person (elected or appointed official responsible for filling out this form.) B. Chief Executive Officer (Enter your name here ONLY if you are the elected or appointed official responsible for the EXECUTIVE ADMINISTRATION, i.e. mayor, supervisor, or chairman. Your name will be listed with this responsibility on our website.) C. Chief Financial Officer (Enter your name here ONLY if you are the elected or appointed official responsible for MAINTAINING THE GOVERNMENT'S FINANCIAL RECORDS. Your name will be listed with this responsibility on our website.) Connie Knutti Chris Lower Richard Walendukanis Chairperson President Chairperson 156 W Lanark Ave Willow Rd Forest Hill Dr Lanark Lanark Lanark IL IL IL Phone: (815) Ext. Phone: (815) Ext. Phone: (815) Ext. Fax: Fax: Fax: rcknutti@frontiernet.net chris.lower30@gmail.com firewalkerc2@frontiernet.net D. Purchasing Agent (Enter the Purchasing Agent or if there is no Purchasing Agent, the name of the person responsible for oversight of all competitively bid contracts should be listed.) E. FOIA Officer (Enter the FOIA Officer or if there is no FOIA Officer, the name of the person responsible for oversight of all FOIA requests should be listed.) Jodi Diffenderfer Ed Mitchell Purchasing Agent PO Box 312 Lena Attorney 110 N Broad St Lanark IL IL Phone: (815) Ext. Phone: (815) Ext. Fax: jdacctandtax@gmail.com Fax: mitbk@hotmail.com If the Chief Executive Officer and the Chief Financial Officer are the same person as the Contact Person, please check this box and skip to Step

7 Unit Name : Unit Code : 008/020/06 Lanark Fire Protection District STEP 2: VERIFY FISCAL YEAR END FY END DATE: 4/30/2016 If the fiscal year end date listed above is incorrect, follow the steps outlined in the Comptroller Connect application to provide your official documentation that confirms your fiscal year end date. Upon receipt and approval of this documentation, your fiscal year end date can be officially amended. STEP 3: GASB 34, ACCOUNTING SYSTEM, DEBT, UTILITY, HOME RULE, TIF, AND PENSION / RETIREMENT BENEFITS A. Has your government implemented GASB 34 in FY 2016 reporting or in previous reporting years? Yes X No If Yes: Governments who have implemented GASB 34 and are using "other basis of accounting" (OCBOA) such as "Cash Basis" and "Modified Cash Basis" as their accounting system will now be able to select these types as their accounting system. Please fill out the Alternative Assets & Liabilities page, located on page F1(b) B. Which type of accounting system does Lanark Fire Protection District use? X Cash - with no assets (Cash Basis) Modified Accrual/Accrual Cash - with assets (Modified Cash Basis) C. Does the government have bonded debt this reporting fiscal year? Combination (Explain) Yes X No If "Yes", indicate the type(s) of debt and complete the Statement of Indebtednessand Debt Limitations and Future Debt pages, located on page F5 and F6. G.O.Bonds Revenue Bonds Alternative Revenue Bonds D. Does the government have debt, other than bonded debt this reporting fiscal year? Yes X No If "Yes", indicate the type(s) of debt and complete the Statement of Indebtedness and Debt Limitations and Future Debt pages, located on page F5 and F6. Contractual Commitments Other (Explain) E. Does the government own or operate a public utility company? Yes X No If "Yes", indicate the type(s) of utilities and enter the expenditures in Code 271. Water/Sewer Electric/Gas/Transit 911 Telephone/Telecommunications Other F. Does the government have a pension funds or other retirement benefits this reporting fiscal year? If Yes, indicate the type(s) of pension funds or other retirement benefits and complete the Pension Funds/Retirement Benefits section. Yes X No Illinois Municipal Retirement Fund (IMRF) Police Pension Fire Pension Sheriff's Law Enforcement Personnel Plan (SLEP) Other Pension Other Post Employment Benefits (OPEB) 2 5

8 Unit Name : Lanark Fire Protection District Unit Code : 008/020/06 STEP 4: POPULATION, EAV AND EMPLOYEES What is the total population of Lanark Fire Protection District?^ 2,653 What is the total EAV of Lanark Fire Protection District? $151,768,439 How many full time employees are paid?* 0 How many part time employees are paid?* 51 What is the total salary paid to all employees? $191,570 ^ Or provide estimated population. * Do not include contractual employees. STEPS 5 AND 6: COMPONENT UNITS AND APPROPRIATIONS Provide the appropriation for the primary government listed in the first row of the table below. In the remaining rows, provide the names of all component units along with their appropriations. Indicate if the component units are blended or discretely presented, its fiscal year end date and if the component unit was funded with governmental fund types or enterprise fund types. If the component units are already indicated, that data is based on forms submitted last year. If you have more component units than the rows provided below, please indicate them on an attachment. If you need assistance with the terms indicated below, refer to the Chart of Accounts and Definitions and the How to Fill Out An AFR documents. Name of Unit/Component FUNDS SHOULD NOT BE LISTED HERE* Appropriation^ Type of Component Unit (Blended or Discretely Presented) Lanark Fire Protection District $1,633,720 04/30 Total Appropriations $1,633,720 Fiscal Year End Enterprise Fund Type or Governmental Fund Type * Do not enter funds such as Joint Bridge, Permanent Road, Town Fund, Equipment, Water & Sewer, General Assistance, etc. These funds should be included in Step 8. ^ If the Primary Government or Component Unit does NOT budget or levy taxes, please enter the unit's TOTAL EXPENDITURES. 3 6

9 Unit Name : Unit Code : 008/020/06 Lanark Fire Protection District STEP 7: OTHER GOVERNMENTS Indicate any payments Lanark Fire Protection District made to other governments for services or programs (include programs performed on a reimbursement, cost-sharing basis or federal payroll taxes). Intergovernmental agreements - indicate how much was paid Federal government payroll taxes $20,436 All other intergovernmental payments $0 $0 STEP 8: FUND LISTING & ACCOUNT GROUPS A. List all funds and how much was spent in FY 2016 for each fund. Also, indicate the Fund Type (Fund Types are at the top of each column beginning on page F1). If any fund names appear below, the data is based on forms submitted last year. Please make all necessary corrections. If you have more fund names than the rows provided below, please indicate them on an attachment. Fund Name Expenditure Fund Type FY End Ambulance Fund $282,807 Special Revenue Fund 04/30 General Fund $162,704 General Fund 04/30 Total Expenditures $445,511 B. Does Lanark Fire Protection District have assets or liabilities that should be recorded as a part of Account Groups? See Chart of Acounts and Definitions and the How to Fill Out An AFR documents for more information about Account Groups. Yes X No 4 7

10 Unit Name : Unit Code : 008/020/06 Lanark Fire Protection District STEP 9: GOVERNMENTAL ENTITIES List of governmental entities that are part of or related to the primary government. Exclude component units detailed in Steps 5 & 6. Most small governments do not have governmental entities. Entity Name Relationship STEP 10: REPORTING Check any state or local entity where financial reports are filed. STATE AGENCIES - Board of Education - Board of Higher Education - DCEO - Department of Insurance OTHER STATE OR LOCAL OFFICES X - Illinois Comptroller - Secretary of State - General Assembly - House - General Assembly - Senate X - County Clerk - Circuit Clerk - Governor's Office - Other - 5 8

11 Financial Statements

12 Code Enter All Amounts in Whole Numbers Assets General Statement of Financial Position All Funds and Discretely Presented Component Units Special Revenue Capital Projects Debt Service Enterprise Report In Whole Numbers Internal Service Fiduciary Account Groups Discretely Presented Component Units 101t Cash and Cash Equivalent $324,523 $184,372 $0 $0 $0 $0 $0 $0 $0 102t Investments $1,375,231 $704,000 $0 $0 $0 $0 $0 $0 $0 115t Receivables $0 $0 $0 $0 $0 $0 $0 $0 $0 109t Inventories $0 $0 $0 $0 $0 $0 $0 $0 $0 111t Fixed Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 112t Other Assets (Explain) $0 $0 $0 $0 $0 $0 $0 $0 $0 113t Amount available for retirement of long-term debt $0 $0 $0 $0 $0 $0 $0 $0 $0 114t Amount to be provided for payment of long-term debt $0 $0 $0 $0 $0 $0 $0 $0 $0 120t Total Assets $1,699,754 $888,372 $0 $0 $0 $0 $0 $0 $0 122t All Payables $0 $0 $0 $0 $0 $0 $0 $0 $0 132t Deferred Revenues $0 $0 $0 $0 $0 $0 $0 $0 $0 133t Debt Service Payable - Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 134t Debt Service Payable - Interest $0 $0 $0 $0 $0 $0 $0 $0 $0 128t Other Liabilities (Explain) $0 $0 $0 $0 $0 $0 $0 $0 $0 135t Total Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 Equity 136t Fund Balance - Reserved $0 $888,372 $0 $0 $0 $0 $0 $0 $0 137t Fund Balance - Unreserved $1,699,754 $0 $0 $0 $0 $0 $0 $0 $0 138t Retained Earnings - Reserved $0 $0 $0 $0 $0 $0 $0 $0 $0 139t Retained Earnings - Unreserved $0 $0 $0 $0 $0 $0 $0 $0 $0 140t Contributed Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 141t Investment in General Fixed Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 142t Total Equity $1,699,754 $888,372 $0 $0 $0 $0 $0 $0 $0 145t Total Liability and Equity $1,699,754 $888,372 $0 $0 $0 $0 $0 $0 $0 F1a See Notes to Financial Statements. 9

13 Code Enter All Amounts in Whole Numbers Local Taxes General Special Revenue Revenues and Receipts Capital Projects Debt Service Enterprise Report In Whole Numbers Internal Service Fiduciary Discretely Presented Component Units 201t Property Tax $242,230 $287,148 $0 $0 $0 $0 $0 $0 203t Utilities Tax $0 $0 $0 $0 $0 $0 $0 $0 204t Other Taxes (Explain) $3,600 $0 $0 $0 $0 $0 $0 $0 Intergovernmental Receipts & Grants 212t State Sales Tax $0 $0 $0 $0 $0 $0 $0 $0 213t State Motor Fuel Tax $0 $0 $0 $0 $0 $0 $0 $0 214t State Replacement Tax $1,923 $1,306 $0 $0 $0 $0 $0 $0 205t State Gaming Tax(es) $0 $0 $0 $0 $0 $0 $0 $0 215t Other State Sources (Explain) $0 $0 $0 $0 $0 $0 $0 $0 225t Federal Sources $0 $0 $0 $0 $0 $0 $0 $0 226t Other Intergovernmental Sources (Explain) $0 $0 $0 $0 $0 $0 $0 $0 Other Local Sources 231t Licenses and Permits $0 $0 $0 $0 $0 $0 $0 $0 233t Fines and Forfeitures $0 $0 $0 $0 $0 $0 $0 $0 234t Charges for Services $0 $78,713 $0 $0 $0 $0 $0 $0 235t Interest $12,390 $3,755 $0 $0 $0 $0 $0 $0 236t Miscellaneous (Explain) $1,079,362 $3,001 $0 $0 $0 $0 $0 $0 240t Total Receipts and Revenue $1,339,505 $373,923 $0 $0 $0 $0 $0 $0 F2 See Notes to Financial Statements. 10

14 Disbursements, Expenditures and Expenses Code Enter All Amounts in Whole Numbers General Special Revenue Capital Projects Debt Service Enterprise Report In Whole Numbers Internal Service Fiduciary Discretely Presented Component Units 251t General Government $0 $0 $0 $0 $0 $0 $0 $0 252t Public Safety $124,051 $250,528 $0 $0 $0 $0 $0 $0 254t Judiciary and Legal $0 $0 $0 $0 $0 $0 $0 $0 255t Transportation and Public Works $0 $0 $0 $0 $0 $0 $0 $0 256t Social Services $0 $0 $0 $0 $0 $0 $0 $0 257t Culture and Recreation $0 $0 $0 $0 $0 $0 $0 $0 258t Housing $0 $0 $0 $0 $0 $0 $0 $0 275t Environment $0 $0 $0 $0 $0 $0 $0 $0 259t Debt $0 $0 $0 $0 $0 $0 $0 $0 271t Public Utility Company $0 $0 $0 $0 $0 $0 $0 $0 272t Depreciation $0 $0 $0 $0 $0 $0 $0 $0 280t Capital Outlay $38,653 $32,279 $0 $0 $0 $0 $0 $0 260t Other Expenditures/Expenses (Explain) $0 $0 $0 $0 $0 $0 $0 $0 270t Total Expenditures/Expense $162,704 $282,807 $0 $0 $0 $0 $0 $0 F3 See Notes to Financial Statements. 11

15 Fund Balances and Other Financing Sources (Uses) Code 301t Enter All Amounts in Whole Numbers General Special Revenue Capital Projects Debt Service Enterprise Report In Whole Numbers Internal Service Fiduciary Discretely Presented Component Units Excess of receipts/revenues over (under) expenditures/expenses (240t-270t) $1,176,801 $91,116 $0 $0 $0 $0 $0 $0 302t Operating transfers in $0 $0 $0 $0 $0 $0 $0 $0 303t Operating transfers out $0 $0 $0 $0 $0 $0 $0 $0 304t Bond proceeds $0 $0 $0 $0 $0 $0 $0 $0 305t Other long term debt (Explain) $0 $0 $0 $0 $0 $0 $0 $0 306t Net increase (decrease) in fund balance (301t + 302t - 303t + 304t + 305t) $1,176,801 $91,116 $0 $0 $0 $0 $0 $0 307t Previous year fund balance $1,320,209 $0 $0 $0 $0 $0 $0 $0 308t Other (Explain) ($797,256) $797,256 $0 $0 $0 $0 $0 $0 310t Current Year Ending Fund Balance (306t + 307t + 308t) $1,699,754 $888,372 $0 $0 $0 $0 $0 $0 F4 See Notes to Financial Statements. 12

16 Lanark Fire Protection District Notes to Financial Statements Note 1 Summary of Significant Accounting Policies Reporting Entity The District operates under a board of trustees form of government. The District's major operations include fire protection and ambulance services. In evaluating how to define the government, for financial reporting purposes, the District has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in GAAP. The basic - but not the only - criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency. Other manifestations of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of management, the ability to significantly influence operations, and accountability for fiscal matters. A second criterion used in evaluating potential component units is the scope of public service. Application of this criterion involves considering whether the activity is conducted within the geographic boundaries of the District and is generally available to its residents. A third criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the District is able to exercise oversight responsibilities. The District is considered to be a primary government since it is legally separate and financially independent. This report includes all of the funds and account groups of the District. It includes all activities considered to be part (controlled by or dependent on) the District as set forth under the above criteria. Following is a summary of the District s more significant accounting policies: Basis of Presentation - Fund Accounting: These financial statements comply with the regulatory reporting basis prescribed by the State of Illinois Comptroller. The accounts of the District are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets and liabilities arising from cash transactions, fund balance, revenue received and expenditures paid. The District maintains individual funds required by the State of Illinois. These funds are presented on the regulatory basis as required for reports filed with the State of Illinois Comptroller. District resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The following funds and account groups are used by the District: General Fund - This fund is the general operating fund of the District. It is used to account for all financial resources except those required to be accounted for in another fund. Ambulance Fund - This fund is a special revenue fund used to account for the costs associated with ambulance service. 13

17 Lanark Fire Protection District Notes to Financial Statements Note 1 Summary of Significant Accounting Policies (Continued) Basis of Accounting: Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The District maintains its accounting records for all funds and account groups on the regulatory basis and specifically the cash basis as described in the State of Illinois Comptroller Annual Financial Report. Accordingly, revenue is recorded when cash is received and expenditures are recorded when checks are written. Only assets representing a right to receive cash arising from a previous payment of cash are recorded as assets of a fund. In the same manner, only liabilities resulting from previous cash transactions are recorded as liabilities of a particular fund. The regulatory basis also allows for reporting method of cash - with no assets. Therefore, fixed assets such as buildings and equipment are omitted from the financial statements even though they may be material in nature. The District has not maintained detailed schedules for its fixed assets. These regulatory basis financial statements also omit recognition of receivables and payables and other accrued and deferred items that do arise from previous cash transactions. Cash and Investments: Cash and cash equivalents consist of demand deposits and money market accounts. Deposits and investments as of April 30, 2016 consisted of certificates of deposits and fixed income securities that are stated at cost which approximates market. Statutes authorize the District to invest in: 1) securities guaranteed by the full faith and credit of the United States of America; 2) deposits or other investments constituting direct obligations of any bank as defined by the Illinois Banking Act; 3) short-term obligations of corporations organized in the United States which meet other restrictions as defined in Illinois Revised Statutes Chapter 35, Paragraph 902, as amended; 4) money market funds registered under the Investment Company Act of 1940; 5) short-term discount obligations of the Federal National Mortgage Association; 6) shares or other forms of securities legally issuable by savings and loan associations; 7) various share accounts of a credit union chartered under the laws of the State of Illinois or the laws of the United States provided the principal office of any such credit union is located within the State of Illinois; 8) a Public Treasurer's Investment Pool created under Section 17 of "An Act to revise the law in relation to the State Treasurer", approved April 23, 1873, as amended. Bank and savings and loan investments may only be made in institutions which are insured by the Federal Deposit Insurance Corporation. Budgets and Budgetary Accounting: Public meetings are conducted to obtain taxpayer comments. The appropriations is legally enacted through passage of an ordinance prior to July

18 Lanark Fire Protection District Notes to Financial Statements Note 1 Summary of Significant Accounting Policies (Continued) Budgets and Budgetary Accounting (Continued): The District treasurer is authorized to expend the unexpensed balance of any item or items of any general appropriation and make up any deficiency in any item or items of the same general appropriation. Unexpended budgeted amounts lapse at the end of each year. Spending control is established by the amount of expenditures budgeted for the fund, but management control is exercised at budgetary line items. Fixed Assets: Purchases of fixed asset property and equipment are recorded as disbursements of the various funds when paid. Property Taxes: The County in which the District resides is responsible for assessing, collecting and distributing property taxes in accordance with enabling state legislation. Property tax is levied each year on all taxable real property located in the District on or before the second Tuesday in December. The levy was passed by the board on September 9, Property taxes attach as an enforceable lien on property as of January 1 and are payable in two installments. The first installment is due on or before approximately June 1 and the second installment is due on or before approximately September 1. The District receives significant distributions of tax receipts approximately one month after the installment due dates. Property tax revenue received reflected in the report represents amounts collected on the 2014 tax levy. Estimates: The preparation of financial statements in certain situations requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Fund Balance: Reservations of fund balance represent amounts that are not appropriable or are legally segregated for a specific purpose. When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the District first applies restricted resources. Note 2 Deposits and Investments Deposits. At year-end, the carrying amount of the District's deposits in checking and money market accounts was $508,895 and the bank balance was $518,549. All of the bank balance was covered by Federal Depository Insurance or by collateral held by pledging bank s trust department or by its agent in the District's name and $-0- was uninsured. Custodial credit risk is the risk that, in the event of a bank failure, the District s deposits might not be recovered. As of April 30, 2016, the District had $-0- exposed to custodial credit risk and was uninsured and uncollateralized 15

19 Lanark Fire Protection District Notes to Financial Statements Note 2 Deposits and Investments (Continued): Investments. As of April 30, 2016, the District's investments were as follows (for financial statement purposes, the certificates of deposit are considered investments): Carrying Amount Market Value Money Market Mutual Funds $ 17,040 $17,040 Certificates of Deposit 1,500,000 1,512,415 US Securities 510, ,822 Municipal Bonds 51,449 51,991 $2,079,231 $2,097,268 Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The District policy on the interest rate risk at year-end is to attempt to obtain a reasonable return provided that the requirements of safety and liquidity are first met. Information about the sensitivity of the fair values of the District investments to market interest rate fluctuations is provided by the following table that shows the distribution of the District s investments by maturity: Remaining Maturity (in Months) 12 Months Months or less Months Months or more Total Money Market Mutual Funds $ 17,040 $ - $ - $ - $ 17,040 Certificates of Deposit 1,500, ,500,000 US Securities - 309,092 99, , ,742 Municipal Bonds ,449 51,449 Total $1,517,040 $309,092 $99,557 $153,542 $2,079,231 Credit Risk: Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below are the District s investment policy, or debt agreements, and the actual rating as of year-end for each investment type: Total as of Aa2 Unrated April 30, 2016 Money Market Mutual Funds $ - $ 17,040 $ 17,040 Certificates of Deposit - 1,500,000 1,500,000 US Securities - 510, ,742 Municipal Bonds 51,449-51,449 Total $51,449 $2,027,782 $2,079,231 16

20 Lanark Fire Protection District Notes to Financial Statements Note 3 Common Bank Account Separate bank accounts are not maintained for all District funds; instead, certain funds maintain balances in common checking and money market accounts, with the accounting records being maintained to show the portion of the common account balance attributable to each participating fund. Occasionally certain funds participating in the common bank accounts will incur overdrafts (deficits) in the account. The overdrafts result from expenditures which have been approved by the District Board. A deficit in one fund limits the cash available for use by other funds in the same common account. As of April 30, 2016, no overdrafts existed. Any overdrafts would be reclassified for financial reporting purposes as an interfund receivable/payable. Note 4 Legal Debt Limit The District is subject to a debt limitation of 5.75% of its assessed valuation of $151,768,439. As of April 30, 2016 the District had $8,726,685 of remaining legal debt margin. Note 5 Fund Balance Reporting According to Government Accounting Standards, fund balances are to be classified into five major classifications; Nonspendable Fund Balance, Restricted Fund Balance, Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance. The Regulatory Model, followed by the District, only reports Reserved and Unreserved Fund Balances. Below are definitions of the how these balances are reported. Nonspendable Fund Balance The nonspendable fund balance classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. The not in spendable form criterion includes items that are not expected to be converted to cash, for example inventories and prepaid amounts. Due to the regulatory basis nature of the District, all such items are expensed at the time of purchase, so there is nothing to report for this classification. Restricted Fund Balance The restricted fund balance classification refers to amounts that are subject to outside restrictions, not controlled by the entity. Things such as restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. Special Revenue Funds are by definition restricted for those specified purposes. The District has revenue sources received within specific fund that also fall into this categories Ambulance Revenues received and the related expenditures disbursed of this restricted tax levy are accounted for in the Ambulance Fund. 17

21 Lanark Fire Protection District Notes to Financial Statements Note 5 Fund Balance Reporting (Continued): Committed Fund Balance The committed fund balance classification refers to amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government s highest level of decision making authority (the Board). Those committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of formal action it employed to previously commit those amounts. The Board commits fund balance by making motions or passing resolutions to adopt policy or to approve contracts. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. The District has no committed fund balances at year end. Assigned Fund Balance The assigned fund balance classification refers to amounts that are constrained by the government s intent to be used for a specific purpose, but are neither restricted nor committed. Intent may be expressed when the Board has delegated the authority to assign amounts to be used for specific purposes. The District has no balances that are assigned at year end. Unassigned Fund Balance The unassigned fund balance classification is the residual classification for amounts in the General Fire Funds for amounts that have not been restricted, committed, or assigned to specific purposes within the General Funds. Unassigned Fund Balance amounts are shown in the financial statements as Unreserved Fund Balances. Regulatory Fund Balance Definitions Reserved Fund Balances are those balances that are reserved for a specified purpose, other than the regular purpose of any given fund. Unreserved Fund Balances are all balances that are not reserved for a specific purpose other than the specified purpose of a fund. Reconciliation of Fund Balance Reporting The Fund Balance Reporting according to generally accepted accounting principles would have a restricted fund balance in Ambulance Fund of $888,372 and an unassigned fund balance in General Fund of $1,699,754. The Fund Balance Reporting under the regulatory basis of accounting utilized in preparation of the financial statements has a reserved fund balance in Special Revenue of $888,372 and an unreserved fund balance in General of $1,699,

22 Other Information

23 Statement of Indebtedness (Governmental & Proprietary combined) Debt Instruments for All Funds Code Outstanding Beginning of Year Code Issued Current Fiscal Year Code Retired Current Fiscal Year Code Outstanding End of Year Report In Whole Numbers Original Issue Amount Final Maturity Date Interest Rate Ranges-Lowest Interest Rate Ranges-Highest General Obligation Bonds 400 $0 406 $0 412 $0 418 $0 $0 0.00% 0.00% Revenue Bonds 401 $0 407 $0 413 $0 419 $0 $0 0.00% 0.00% Alternate Revenue Bonds 402 $0 408 $0 414 $0 420 $0 $0 0.00% 0.00% Contractual Commitments 403 $0 409 $0 415 $0 421 $0 $0 0.00% 0.00% Other (Explain) 404 $0 410 $0 416 $0 422 $0 $0 0.00% 0.00% Total Debt 405 $0 411 $0 417 $0 423 $0 F5 19

24 Debt Limitations and Future Debt I certify that Lanark Fire Protection District does not have Legal Debt Limitation Based on Statute Based on Other Total Legal Debt Limitation: $8,726,685 Total Debt Applicable to the limit: $0 Legal Debt Margin: $8,726,685 Legal Debt Margin (%): % Future Debt Service Requirements for Bonded Debt listed above Year Ending Principal Interest Total 2017 $0 $0 $ $0 $0 $ $0 $0 $ $0 $0 $ $0 $0 $ $0 $0 $ $0 $0 $ $0 $0 $0 TOTAL $ 0 $ 0 $ 0 Please provide a summary of the authorized debt limitations, including any statutory references. The District is subject to a debt limitation of 5.75% of its assessed valuation of $151,768,439. As of April 30, 2016 the District had $8,726,685 of remaining legal debt margin. F6 20

25 Pension Funds / Retirement Benefits Code Enter All Amounts in Whole Numbers IMRF Police Pension Fire Pension Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year Actuarial Valuation Date (VD) 500a 500b Reporting Date (RD) Measurement Date (MD) 501 Total Pension Liability (TPL) $0 $0 $0 $0 $0 $0 $0 $0 $0 502 Plan Fiduciary Net Position (FNP) $0 $0 $0 $0 $0 $0 $0 $0 $0 503 Net Pension Liability (NPL) $0 $0 $0 $0 $0 $0 $0 $0 $ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Net Pension Obligation/ Net OPEB Obligation $0 $0 $0 $0 $0 $0 $0 $0 $0 Enter All Amounts in Whole Numbers Code SLEP Other Pension OPEB (Net) Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year Actuarial Valuation Date (VD) 500a Reporting Date (RD) 500b Measurement Date (MD) 501 Total Pension Liability (TPL) $0 $0 $0 $0 $0 $0 $0 $0 $0 502 Plan Fiduciary Net Position (FNP) $0 $0 $0 $0 $0 $0 $0 $0 $0 503 Net Pension Liability (NPL) $0 $0 $0 $0 $0 $0 $0 $0 $ Plan Fiduciary Net Position as a Percentage of Total Pension Liability 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Net Pension Obligation / Net OPEB Obligation $0 $0 $0 $0 $0 $0 $0 $0 $0 F7 21

26 Capital Outlay* These are not funds Code Function Construction Land, Structures, and Equipment 601t General Government $0 $0 602t Law Enforcement $0 $0 603t Corrections $0 $0 604t Fire $0 $70, t Sewerage $0 $0 606t Sanitation and Wastewater $0 $0 607t Parks and Recreation $0 $0 608t Housing and Community Development $0 $0 609t Highways, Roads and Bridges $0 $0 610t Parking Facilities $0 $0 611t Welfare $0 $0 612t Hospital $0 $0 613t Water $0 $0 614t Nursing Homes $0 $0 615t Conservation and Natural Resources $0 $0 616t Libraries $0 $0 617t Other $0 $0 *This page should only be filled out if you have spent funds for capital projects or development. *The Capital Outlay page is requested by the U.S. Census Bureau and is considered optional by the State Comptroller. *If you complete this page you WILL NOT have to complete the Survey of Government Finances from the U.S. Census Bureau. *If you do NOT complete this page the U.S. Census Bureau will contact you for further information. F8 22

27 Explanation or Comments Type AuthDebtLimit Gen Explanation The District is subject to a debt limitation of 5.75% of its assessed valuation of $151,768,439. As of April 30, 2016 the District had $8,726,685 of remaining legal debt margin. Line 204t - Other taxes includes fire tax. Line 236t - Misc Income for the General Fund includes the proceeds from the sale of farm land that was received from an estate. It also includes the proceeds from the sale various small equipment. Line 236t - Misc Income for the Special Revenue Fund includes the proceeds from the sale of various small equipment. Line 308t - Fund Balance is being reallocated from the General Fund to the Special Revenue Fund. F9 23

28 CPA Information According to the Governmental Account Audit Act [50 ILCS 310], an Annual Audit submitted to the IL Office of the Comptroller shall be performed by a licensed public accountant, with a valid certificate as a public accountant under the Illinois Public Accounting Act [225 ILCS 450]. Please access the website of the Illinois General Assembly ( to view these Acts. If your government is required to submit an Annual Audit, please complete the following: Is the Licensed Certified Public Accountant performing your audit working as an individual licensed in Illinois, or are they working in association with a Public Accounting Firm or a Professional Service Corporation licensed in Illinois, or are they licensed in another state? Please use a checkmark to select one choice: Individual Licensed Certified Public Accountant X Public Accounting Firm (IL License) Professional Service Corporation (IL License) Out-of-State (Individual / Public Accounting Firm / Professional Service Corporation) Is the Licensed Certified Public Accountant performing your audit working as an individual licensed in Illinois, or are they working in association with a Public Accounting Firm or a Professional Service Corporation licensed in Illinois, or are they licensed in another state? Please use a checkmark to select one choice: Enter the active 9-digit License#: License Status: ACTIVE Business Name: WIPFLI LLP Address: 328 W Stephenson St Address 2: City: Freeport State: IL ZIP: Phone: Ext. Fax: Last Name: Schueler First Name: Matt Title: Partner Phone: Ext. mschueler@wipfli.com F10 24