2016 MUNICIPAL ANNUAL AUDIT AND FINANCIAL REPORT

Transcription

1 Received by DCED: 03/31/2017 Department of Community & Economic Development Governor's Center for Local Government s Commonwealth Keystone Building 400 North Street, 4th Floor Harrisburg, PA Ph: fax: MUNICIPAL ANNUAL AUDIT AND FINANCIAL REPORT NEW WILMINGTON BORO, LAWRENCE COUNTY

2 "i.,... B~ McGill,Power, Bell & Associates, UP CatlSed Mi:~ Bu-.ss & F""" "' M.1Sm 1920 West grh Street Erie, PA Fax: INDEPENDENT AUDITOR'S REPORT Borough Council, Borough of New Wilmington, Commonwealth of Pennsylvania Secretary, Pennsylvania Deparhnent of Community and Economic Development Secretary, Pennsylvania Department of Transportation President Judge of the Court of Conunon Pleas We have audited the accompanying modified cash basis financial statements, included in the Department of Community and Economic Development's (DCED) prescribed form, of the Borough of New Wilmington, Commonwealth of Pennsylvania (the "Borough"), as of and for the year ended. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements included in DCED' s prescribed form in accordance with the modified cash basis of accounting, which is permitted, by the Pennsylvania Department of Community and Economic Development, Governor's Center for Local Government s. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the 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 included in DCED's prescribed form 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 financial statements included in the DCED' s prescribed form are free of 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 Borough'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 Borough'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. Erie Meadville Franklin Grove City Weirton

3 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Qualified Opinion on the New Wilmington Borough Police Pension Plan We were unable to obtain the financial statements of the New Wilmington Borough Police Pension Plan as they were unavailable prior to the required date of submission of the financial statements refe1ted to above, to the DCED. Therefore, because these financial statements were unavailable, the current year activity related to the New Wilmington Borough Police Pension Plan has not been included in the Fiducia1y Trust Fund of the financial statements referred to above. Qualified Opinion In our opinion, except for the possible effects of the matter discussed in the "Basis for Qualified Opinion on the New Wilmington Borough Police Pension Plan" paragraph, the financial statements referred to above present fairly, in all material respects, the respective assets, liabilities and fund balances of New Wilmington Borough as of, and in its revenues and expenditures for the year then ended, on the modified cash basis of accounting as described in the following paragraph. Basis of Accounting The financial statements are prepared on the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. The effects on the financial statements of the variances between the modified cash basis of accounting and accounting principles generally accepted in the United States of America are that revenues are recorded when received rather than earned and expenditures are recognized when paid rather than when incurred. Fixed assets, improvements and infrastructure assets are not capitalized instead; capital acquisitions and construction are reflected as expenditures. Accounts payable, accrued expenses and long-term debt are not recognized as liabilities under the cash basis. When the proceeds of the debt are received, they are recorded as revenues and other financing sources. As the debt and expenses are paid, the principal payments are recorded as expenditures. Restriction on Use This report is intended solely for the information and use of the Borough Council, management, the Pennsylvania Department of Economic and Community Development, the Pennsylvania Department of Transportation, Lawrence County, Pennsylvania, and the Court of Common Pleas and is not intended to be and should not be used by anyone other than these specified parties. McGill, Power, Bell & Associates, LLP Erie, Pennsylvania April 1, 2017

4 BALANCE SHEET DCED-CLGS-30 (09-09) BALANCE SHEET Governmental Funds Proprietary Funds Fid. Fund Account Groups Total General Fund General Fixed Assets General Long Term Debt Assets and Other Debits Cash and Investments 1,321,278 77,250 4,030,473 3,950,456 9,379, Tax Receivable , Accounts Receivable (excluding taxes) 38,572 38, Due From Other Funds , Other Current Assets 164, , Fixed Assets Other Debits Total Assets and Other Debits 1,359,850 77,250 4,030,473 4,115,106 9,582, , Liabilities and Other Credits Payroll Taxes and Other Payroll Withholdings All Other Current Liabilities 311, , Due To Other Funds

5 DCED-CLGS-30 (09-09) BALANCE SHEET Governmental Funds Proprietary Funds Fid. Fund Account Groups Total General Fund General Fixed Assets General Long Term Debt Liabilities and Other Credits Long-Term-Liabilities Current Portion of Long-Term Debt and Other Credits Total Liabilities and Other Credits 311, ,892 Fund and Account Group Equity Contributed Investment in General Fixed Assets Fund Balance / Retained Earnings on 12/31 1,359,850 77,250 4,030,473 3,803,214 9,270, Other Equity Total Fund and Account Group Equity 1,359,850 77,250 4,030,473 3,803,214 9,270,787 TOTAL LIABILITIES AND FUND AND ACCOUNT GROUP EQUITY 9,582,679

6 STATEMENT OF REVENUES AND EXPENDITURES Governmental Funds Proprietary Funds Fiduciary Fund Total General Fund REVENUES Taxes Real Estate Taxes Occupation Taxes (levied under municipal code) Residence Taxes (levied by cities of the 3rd Class) Regional Asset District Sales Tax (Allegheny County municipalities only) Per Capita Taxes Real Estate Transfer Taxes 23,308 23, Earned Income Taxes / Wage Taxes 150, , Business Gross Receipts Taxes Occupation Taxes (levied under Act 511) Local s Tax ** 53,507 53, Amusement / Admission Taxes Mechanical Device Taxes Other Local Tax Enabling Act / Act 511 / Taxes Other: Total Taxes 227, ,010 Licenses and Permits All Other Licenses and Permits 15,176 15, Cable Television Franchise Fees 17,385 17,385 Total Licenses and Permits 32,561 32,561 Fines and Forfeits Fines and Forfeits 20,104 20,104 Total Fines and Forfeits 20,104 20,104

7 STATEMENT OF REVENUES AND EXPENDITURES Governmental Funds Proprietary Funds Fiduciary Fund Total General Fund REVENUES Interest, Rents and Royalties Interest Earnings 1, ,242 95, , Rents and Royalties 7,381 7,381 Total Interest, Rents and Royalties 9, ,242 95, ,973 Federal Highways and Streets Community Development All Other Federal and Operating Grants National Forest All Other Federal Shared and Entitlements Federal Payments in Lieu of Taxes Total Federal State Highways and Streets Community Development Recycling / Act All Other State and Operating Grants 134, , Public Utility Realty Tax (PURTA) Motor Vehicle Fuel Tax (Liquid Fuels Tax) and State Road Turnback 62,006 62, Alcoholic Beverage Licenses General Municipal Pension System State Aid 74,369 74, Foreign Fire Insurance Tax Distribution 10,981 10, Local Share Assessment/Gaming Proceeds Marcellus Shale Impact Fee Distribution 3,341 3,341

8 STATEMENT OF REVENUES AND EXPENDITURES Governmental Funds Proprietary Funds Fiduciary Fund Total General Fund REVENUES State All Other State Shared s and Entitlements State Payments in Lieu of Taxes Total State 224,357 62, ,363 Local Government Units Highways and Streets 4,000 4, All Other Local Governmental Units and Operating Grants Local Government Unit Shared Payments for Contracted Intergovernmental s Local Governmental Units and Authorities Payments in Lieu of Taxes 10,000 10,000 40,000 40,000 Total Local Government Units 54,000 54,000 Charges for General Government Public Safety Parking All Other Charges for Highway & Street s Wastewater / Sewage (including connection / tapping fees, sewer usage charges, reserve capacity fee, etc.) 505, , Solid Waste Collection and Disposal Charge (trash) 41,459 41, Host Municipality Benefit Fee for Solid Waste Facility All Other Charges for Sanitation s Health Human s Culture and Recreation 78,798 78, Airports

9 STATEMENT OF REVENUES AND EXPENDITURES Governmental Funds Proprietary Funds Fiduciary Fund Total General Fund REVENUES Charges for Bars Cemeteries Electric System 22,700 2,650,855 2,673, Gas System Housing System Markets Transit Systems Water System All Other Charges for Total Charges for 144,342 3,156,299 3,300,641 Unclassified Operating s Assessments Escheats (sale of personal property) Contributions and Donations from Private Sectors Fiduciary Fund Pension Contributions 75,512 75, All Other Unclassified Operating s 2,520 2,520 Total Unclassified Operating s 2,520 75,512 78,032 Other Financing Sources Proceeds of General Fixed Asset Disposition Interfund Operating Transfers 853,551 25, , Proceeds of General Long-Term Debt 7,939,549 7,939, Proceeds of Short Term-Debt

10 STATEMENT OF REVENUES AND EXPENDITURES Governmental Funds Proprietary Funds Fiduciary Fund Total General Fund REVENUES Other Financing Sources Refunds of Prior Year Expenditures 38,323 38,323 Total Other Financing Sources 891,874 7,965,159 8,857,033 TOTAL REVENUES 1,605,870 62,206 11,139, ,941 12,978,717 EXPENDITURES General Government Legislative (Governing) Body Executive (Manager or Mayor) Auditing s / Financial Administration 13,425 13, Tax Collection Solicitor / Legal s 16,263 16, Secretary / Clerk 30,786 30, Other General Government Administration 39,569 39, IT-Networking s-data Processing Engineering s General Government Buildings and Plant 52,570 52,570 Total General Government 152, ,717 Public Safety Police 325, , Fire 16,981 16, Ambulance / Rescue UCC and Code Enforcement 6,000 6,000

11 STATEMENT OF REVENUES AND EXPENDITURES Governmental Funds Proprietary Funds Fiduciary Fund Total General Fund EXPENDITURES Public Safety Planning and Zoning Emergency Management and Communications Militia and Armories Examination of Licensed Occupations Public Scales (weights and measures) Other Public Safety 1,654 1,654 Total Public Safety 350, , Health and Human s Health and Human s Total Health and Human s Public Works - Sanitation Recycling Collection and Disposal Solid Waste Collection and Disposal (garbage) 78,471 78, Weed Control Wastewater / Sewage Treatment and Collection 5,186,111 5,186,111 Total Public Works - Sanitation 78,471 5,186,111 5,264,582 Public Works - Highways and Streets General s - Administration 87,799 87, Cleaning of Streets and Gutters Winter Maintenance Snow Removal Traffic Control Devices Street Lighting 2,621 2,621

12 STATEMENT OF REVENUES AND EXPENDITURES Governmental Funds Proprietary Funds Fiduciary Fund Total General Fund EXPENDITURES Public Works - Highways and Streets Sidewalks and Crosswalks Storm Sewers and Drains Repairs of Tools and Machinery 6,812 6, Maintenance and Repairs of Roads and Bridges Highway Construction and Rebuilding Total Public Works - Highways and Streets 97,232 97,232 Other Public Works s Airports Cemeteries Electric System 1,797,304 1,797, Gas System Markets Parking Storm Water and Flood Control Transit System Water System Water Transport and Terminals Total Other Public Works s 1,797,304 1,797,304 Culture and Recreation Culture-Recreation Administration Participant Recreation 70,448 70, Spectator Recreation Parks 37,732 37,732

13 STATEMENT OF REVENUES AND EXPENDITURES Governmental Funds Proprietary Funds Fiduciary Fund Total General Fund EXPENDITURES Culture and Recreation Shade Trees Libraries Civil and Military Celebrations Senior Citizens Centers All Other Culture and Recreation Total Culture and Recreation 108, ,180 Community Development Conservation of Natural Resources Community Development and Housing Economic Development Economic Opportunity All Other Community Development Total Community Development Debt Principal (short-term and long-term) Debt Interest (short-term and long-term) 167, , Fiscal Agent Fees Total 167, ,263 Employer Paid Benefits and Withholding Items Employer Paid Withholding Taxes and Unemployment Compensation 63,197 63, Judgments and Losses Pension / Retirement Fund Contributions 75,512 75,512

14 STATEMENT OF REVENUES AND EXPENDITURES Governmental Funds Proprietary Funds Fiduciary Fund Total General Fund EXPENDITURES Employer Paid Benefits and Withholding Items Worker Compensation Insurance 54,958 54, Other Group Insurance Benefits 265, ,757 Total Employer Paid Benefits and Withholding Items 459, ,424 Insurance Insurance, Casualty, and Surety 38,646 38,646 Total Insurance 38,646 38,646 Unclassified Operating Expenditures Fiduciary Fund Benefits and Refunds Paid 86,202 86, All Other Unclassified Expenditures Total Unclassified Operating Expenditures 26 86,202 86,228 Other Financing Uses Refund of Prior Year s Interfund Operating Transfers 25, , , All Other Financing Uses 9,689,152 9,689,152 Total Other Financing Uses 25,610 10,542,703 10,568,313 TOTAL EXPENDITURES 1,310,963 17,693,407 86,202 19,090,572 EXCESS/DEFICIT OF REVENUES OVER EXPENDITURES 294,907 62,206-6,553,707 84,739-6,111,855

15 DCED-CLGS-30 (9-06) NEW WILMINGTON BORO DEBT STATEMENT OUTSTANDING BONDS AND NOTES Listed below are all currently outstanding bond and note issues according to our files, excluding bond issues redeemed or refunded and defeased. Please show the principal payments and make any other necessary corrections and additions. Purpose General Obligation Bonds and Notes Bond (B) Lease (C) Lease Rental (L) Note (N) Issue Year (yyyy) Maturity Year (yyyy) Original Amount of Issue Outstanding Beginning of Year (1) Principal Incurred This Year Principal Paid This Year Current Year Accretion on Compound Interest Bonds Outstanding at Year End (1) Plus (less) Unamortized Premium (Discount) Total Balance General Obligation bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond , , , General Obligatin bonds, Series 2014 Bond , , , General Obligatin bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond , , , General Obligation bonds, Series 2014 Bond ,850,000 1,850,000 1,850, General Obligtion bonds, Series 2014 Bond ,280,000 2,280,000 2,280, General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Sieries of 2016 Bond , , , ,000

16 DCED-CLGS-30 (9-06) NEW WILMINGTON BORO DEBT STATEMENT OUTSTANDING BONDS AND NOTES Listed below are all currently outstanding bond and note issues according to our files, excluding bond issues redeemed or refunded and defeased. Please show the principal payments and make any other necessary corrections and additions. Purpose Bond (B) Lease (C) Lease Rental (L) Note (N) Issue Year (yyyy) Maturity Year (yyyy) Original Amount of Issue Outstanding Beginning of Year (1) Principal Incurred This Year Principal Paid This Year Current Year Accretion on Compound Interest Bonds Outstanding at Year End (1) Plus (less) Unamortized Premium (Discount) General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond , , , ,000 General Obligation bonds, Series of 2016 Bond ,335, ,335,000 2,335,000 2,335,000 General Obligation bonds, Series of 2016 Bond , ,000 5,000 5,000 Bonds and Notes Total Balance Lease Rental Debt Other (1) - excludes unamortized premium/discount Total bonds and notes outstanding 8,070,000 ized lease obligations 0 Net debt 8,070,000

17 STATEMENT OF CAPITAL EXPENDITURES Category Purchases Construction Total Community Development Electric Fire Gas System General Government 4,852 4,852 Health Housing Libraries Mass Transit Parks Police 5,230 5,230 Recreation Sewer 4,655,057 4,655,057 Solid Waste Streets / Highways Water Other: TOTAL CAPITAL EXPENDITURES 10,082 4,655,057 4,665,139 EMPLOYEE COMPENSATION Total salaries, wages, commissions, etc. paid this year (including all employees and elected officials) 826,110

18 ELECTED CONTROLLER'S/AUDITOR'S CERTIFIED OPINION To the: Governing Body of the Municipality President Judge of the Court of Common Pleas Secretary of the Department of Community & Economic Development I/We, the undersigned, the duly elected (or appointed replacement), qualified, and Acting Controller/Auditors of the NEW WILMINGTON BORO have audited, adjusted and settled the various funds and account groups of the NEW WILMINGTON BORO for the year ended. My/Our audit, adjustment and settlement was made in accordance with law rather than with generally accepted auditing standards (PLEASE CROSS OUT ONLY IF ON MODIFIED ACCRUAL/ACCRUAL BASIS) This municipality s policy is to prepare its financial statements on the basis of cash receipts and disbursements; consequently, certain revenues and the related assets are recognized when received rather than when earned, and certain expenditures or expenses are recognized when paid rather than when a liability is incurred. Accordingly, the accompanying financial statements are not intended to present the financial position and results of operations of this municipality in conformity with generally accepted accounting principles. These financial statements do not include all of the disclosures required by generally accepted accounting principles. In my/our opinion, the aforementioned financial statements present the financial position of the various funds and account groups of the municipality of NEW WILMINGTON BORO for the year ended, and the results of operations of such funds in accordance with the law. SIGNATURE AND VERIFICATION Signed: MCGILL POWER BELL Appointed Auditor/CPA Subscribed and sworn to before me this 31 day of March, Signed: Witness (Controller)/Auditor (Auditors)

19 NOTES / COMMENTS