FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT TOWN OF WHEATLAND, WISCONSIN

Transcription

1 FINANCIAL STATEMENTS AND INDEPENDENT AUDITOR'S REPORT TOWN OF WHEATLAND, WISCONSIN December 31, 2014

2 T A B L E 0 F C 0 N T E N T S Page INDEPENDENT AUDITOR'S REPORT 3 BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION - MODIFIED CASH BASIS 7 STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS 8 STATEMENT OF ASSETS AND FUND BALANCE - GOVERNMENTAL FUNDS MODIFIED CASH BASIS 9 STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS, AND CHANGES IN FUND BALANCE - MODIFIED CASH BASIS - GOVERNMENTAL FUNDS STATEMENT OF ASSETS AND LIABILITIES - MODIFIED CASH BASIS - FIDUCIARY FUNDS - PROPERTY TAX AGENCY FUND NOTES TO FINANCIAL STATEMENTS SUPPLEMENTAL INFORMATION 'i STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS, AND CHANGES IN FUND BALANCE - MODIFIED CASH BASIS BUDGET AND ACTUAL - GENERAL FUND....., STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS, AND CHANGES IN FUND BALANCE- MODIFIED CAsH BASIS BUDGET AND ACTUAL - FIRE DEPARTMENT FUND OTHER REPORTS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS SCHEDULE OF FINDINGS AND RESPONSES 27 29

3 - ITO~RUD ""~ ---~~ ~~:!~ Your Business Safety Net 609 S. 4th S tree1,. Suite B La'(rosse, WI Phone: Fax: 608~ INDEPENDENT AUDITOR'S REPORT Town Board Town of Wheatland De Soto, Wisconsin Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Wheatland, Wisconsin as of and for the year ended December 31, 2014, and the. related notes to the financial statements, which collectively comprise. the Town's. basic financial statements as listed in the table of contents. M.anagement's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financialstatements in accordance with the modified cash basis of accounting described. in Note A; this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of. the. financial statements in the circumstances. Management is also responsible for the design, implementation,. and maintenance of internal controls relevant. to the. prep~ration 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 op1n1ons on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the. standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An ~udit involves pe~forming procedures to obtain. audit. evidence about th,e 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 controls relevant to the Town's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate -3-

4 in the circumstances, but not for purpose of expressing an opinion on the effectiveness of the Town's internal controls. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the Town of Wheatland, Wisconsin, as of December 31, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis of Accounting We draw attention to Note A of the financial statements, which describes the 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. Other Matters Required Supplementary Information Management has omitted the management's discussion and analysis that is required to be presented to supplement the basic financial statements. such missing information, although not a part of the basic financial statements~ is required by the Governmental. Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context Our opinion on the. bai;:ic. financial statements is not affected by. this missing information.. The budgetary comparison information on pages 23 through 25 is presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in. an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information oin accordance with auditing standards generally accepted in the United States of America, which cons.isted 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. -4-

5 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 5, 2015, on our consideration of the Town's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town's internal control over financial reporting and compliance. IY":- /::- - ~ c::::_ #~ r)-~?{252- November 5,

6 BASIC FINANCIAL STATEMENTS -6-

7 STATEMENT OF NET POSITION - MODIFIED CASH BASIS December 31, 2014 Governmental Activities Total ASSETS Cash and investments $ 97,983 $ 97,983 Total assets $ 97,983 $ 97,983 LIABILITIES Payroll liabilities $ 2,537 $ 2,537 Total liabilities 2,537 2,537 NET POSITION Restricted Special revenue funds 16,839 16,839 Unrestricted Board designated-seal coat 18,003 18,003 Other unrestricted 60,604 60,604 78,607 78,607 Total net position 95,446 95,446 Total liabilities and net position $ 97,983 $ 97,983 The accompanying notes are an integral part of this statement. -7-

8 STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS For the year ended December 31, 2014 Functions/Programs Expenses Charges for Services Program Revenues Operating Grants and Contributions Capital Grants and Contributions Net (Expense) Revenue and Changes in Net Position Governmental Activities Total Governmental activities Current General government Public safety Public works Health and human services Capital outlay Debt service $ 85,186 23, , ,890 95,987 $ 27, $ Total governmental activities Total municipality 488,394 27,662 $===4=8=8='=3=9=4 = $====2=7='=6=6=2= $============= General revenues Taxes Property taxes, levied for general purposes Mobile home fees Managed forest taxes Grants and contributions not restricted to specific programs Shared revenues Other Licenses Interest and investment earnings Miscellaneous Total general receipts Change in net position Net position at January 1 Net position at December ,514 2,645 4,764 18,522 6,783 1,010 1,323 14, ,132 33,594 61,852 $ 95, ,514 2,645 4,764 18,522 6,783 1,010 1,323 14, ,132 33,594 61,852 $ 95[446 The accompanying notes are an integral part of this statement. -8-

9 STATEMENT OF ASSETS AND FUND BALANCE - MODIFIED CASH BASIS GOVERNMENTAL FUNDS December 31, 2014 Assets Cash and cash equivalents General Fund $ 8_1 :..., 1_4_4_ Fire Department $ 1_6 :,_, 8_3_9_ Total $ 9_7..:.., _9_83_ Total assets $==8=1='=1=44== $==1=6='=8=3=9= $==9=7='=9=8=3= Liabilities Current liabilities Payroll liabilities $ 2, '---- $ $ 2,, 537 Total liabilities 2,537 2,537 Fund balance Restricted - fire department Unrestricted Committed - seal coat Unassigned 18,003 60,604 78,607 16,839 16,839 16,839 18,003 60,604 95,446 Total liabilities and fund balance $==8=1='=1=4=4== $==1=6='=8=3 9== $==9=7='=9=83== The accompanying notes are an in~egral -9- part of this statement.

10 STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS, AND CHANGES IN FUND BALANCE - MODIFIED CASH BASIS GOVERNMENTAL FUNDS For the year ended December 31, 2014 Receipts Taxes Intergovernmental Licenses and permits Charges for services Interest Fundraising Other General Fund $ 266, ,817 1,010 17,734 1,321 14,571 Fire Department $ 1, ,231 1,259 $ Total 266, ,817 1,010 19,172 1,323 7,231 15,830 Total receipts 441,376 9, ,306 Disbursements Current General government Public safety Public works Health and human services Capital outlay Debt service payments 85,186 20, , ,890 95,987 3,616 85,186 23, , ,890 95,987 Total disbursements 484,778 3, ,394 Excess of receipts over (under) disbursements (43,402) 6,314 (37,088) Other financing sources (uses) Proceeds from note payable Operating transfers in (out) 70,682 (2,013) 68,669 2,013 2,013 70,682 70,682 Net change in fund balance 25,267 8,327 33,594 Modified cash basis fund balance at beginning of year 53,340 8,512 61,852 Modified cash basis fund balance at end of year $ ==7=8~,.;;;,6::0::::7 = $ 16,839 $====9=5='=4=4=6 = The accompanying notes are an integral part of this statement. -10-

11 STATEMENT OF ASSETS AND LIABILITIES - MODIFIED CASH BASIS FIDUCIARY FUNDS - PROPERTY TAX AGENCY FUND December 31, 2014 Assets Cash and investments $ ==3=9=7='=9=74== Liabilities Unearned revenue - property taxes Due to other governments Total liabilities $ 77, ,160 $ ==3=9=7='=9=74== The accompanying notes are an integral part of this statement. -11-

12 NOTE A - Town of Wheatland, Wisconsin NOTES TO FINANCIAL STATEMENTS December 31, 2014 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Town of Wheatland, Wisconsin conform to the modified cash basis of accounting consistent with its annual report filing with the State of Wisconsin, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The following is a summary of the more significant policies. l. Reporting Entity The Town operates under a Town Board form of government and can the following services as authorized by its charter: public highways and streets, sanitation, health and social services, and recreation, public improvements, planning and zoning, and administrative services. provide safety, culture general This report includes all of the funds of the Town of Wheatland. The reporting entity for the Town is based upon criteria established by the Governmental Accounting Standards Board (GASB) Statement No. 14, "The Financial Reporting Entity." All functions of the Town for which it exercises oversight responsibility are included. The oversight responsibility includes, but is not limited to, financial interdependency, selection of governing authority, designation of management, ability to significantly influence operations and accountability for fiscal matters. 2. Component Units The Town uses the modified cash basis of accounting, which is consistent with its annual report filing with the State of Wisconsin. The modified cash basis of accounting is a basis of accounting other than accounting principles generally accepted in the United States of America, and requires that these financial statements include the primary government and its component units. Component units are separate organizations that are included in the Town's reporting entity because of the significance of their operational or financial relationships with the Town. All significant activities and organizations with which the Town exercises oversight responsibility have been considered for inclusion in the financial statements. The Town has no component units, and it is not included in any other governmental reporting entity. 3. Basis of Presentation Government-wide Statements The statement of net position and the statement of activities present financial information about the Town's governmental and business-type activities (if any). These statements include the financial activities of the overall government in its entirety, except those that are fiduciary. Eliminations have been made to minimize the double counting of internal transactions. These statements distinguish between the governmental and business-type activities (if any) of the Town. Governmental activities generally are', financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed, at least in part, by fees charged to external parties. The Town has no business-type activities. -12-

13 NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 2014 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 3. Basis of Presentation - Continued Government-wide Statements - Continued The statement of. activities presents a comparison between direct expenses and program revenues for business-type activities (if applicable) and for each function of the Town's governmental activities. Direct expenses are those that are specifically associated with and are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. Fund Financial Statements - The fund statements provide information about the Town's funds, including its fiduciary fund. Separate statements for. each fund category -- governmental and fiduciary ~ are presented. The emphasis of fund financial statements.is on major governmental and enterprise funds (if applicable), each displayed in. a separate column. All. remaining governmental and enterprise funds are aggregated and reported as non-major funds. The Town does riot operate any proprietary or enterprise funds. The Town reports the following major governmental funds: General Fund - The General Fund is the operating fund of the. Town. It is used to account for all financial resources except those that are required to be accounted for in other frinds ~.....Fire Department.Fund -. The Fire Department Fund. is. a.. special. r.even~e fuj;ld used to account. for.all. of. the. fire department'~ financial assets and activity. Fiduciary Funds. - Fiduciary Funds account for assets held by the Town in a trustee capacity or as an agent on behalf of others. The Town operates the following fiduciary fund: Property Tax Agency Fund- Agency Funds are used to account. for assets held by the Town as an agent for individuals, private organizations, other governments, and/or other funds. Agency Funds are custodial in nature and do not involve measurement of results of operations. Property tax collections are shown in ali.agency ftind since they are collected. for use by the Town and ~other governmental entities in the subsequent fiscal year. The assets of this fund are excluded from the government-wide. financial st.atements because the Town cannot use these assets to finance its operations. -13-

14 NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 2014 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 4. Basis of Accounting Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of. the measurement made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Revenues are recognized when cash is collected and available. Taxpayer-assessed income, gross receipts, and sales taxes are considered "measurable" when in the hands of intermediary collecting governments and are recognized as revenue at that time. All revenues such as fees, fines, licenses, permits, public charges, etc., are recorded on the modified cash basis. Expenditures are generally recognized under the modified cash basis of accounting when the related cash is expended. Supplies are expensed when purchased and are not inventoried. 5. Use of Estimates The preparation of financial statements in conformity with the modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates or assumptions. 6. Budgets and Budgetary Accounting The Town follows these procedures in establishing the budgetary data reflected in the financial statements: a. The Town Board develops a proposed operating budget for the_ fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. b. A public hearing is conducted in the Town Hall to obtain taxpayer comments. c. Prior to December 1, the budget is legally enacted through passage of a resolution. d. Any transfers of budget amounts between departments or revisions that alter total expenditures must be approved by the Town Board. e. Budgets are adopted on a modified consistent with accounting principles United States of America (U.S. GAAP). cash basis, which generally accepted is in not the -14-

15 NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 2014 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 6. Budgets and Budgetary Accounting - Continued f. Budgetary expenditure control is exercised at the function level (i.e., general government, public safety, etc.) g. Budgeted amounts are as authorized in the original budget resolution and include any subsequent revisions as authorized by the Town Board. h. Appropriations lapse at year-end. 7. Compensated Absences Employee benefits for compensated absences do not vest or accumulate and therefore, are not recorded on these statements. 8. Net Position Designations The Town classifies its net position as follows: a. Restricted net position.indicates that portion of net position that has been legally segregated for specific purposes. b. Unrestricted net position indicates that portion of net position for which the Town. has no legal financial obligation. 9. Fund Balance Classifications The Town classifies.its fund balance as follows: a. Unrestricted, unassigned fund balance is the residual classification for the general fund and includes all amounts not contained in the other classifications. b. Unrestricted, as:signed fund balances include amounts that cari be spent only for. spe'cific. purposes stipulated by representatives designated by the '.Town Boa-rd. ' c. Unrestricted, committed fund balances include amounts that can be spent only for specific purposes approved by the Town Board. d. Restricted fund balances include amounts that can be spent only for the specific purposes stipulated by external resource providers (for example, grant _providers), constitutionally, or through enabling legislation (that is, legislation that creates a new revenue source and restricts its use). Restricted fund balance classifications followed by unrestricted amounts when incurred. 10. State Aids are considered spent first a quali!ying. expenditure. is. State general and categorical aids are recognized as revenue when received. -15-

16 NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 2014 NOTE B - CASH AND INVESTMENTS Cash and investments as of December 31, 2014, are classified in the accompanying financial statements as follows: Statement of net position Governmental activities Fiduciary Fund $ $ 97, , ,957 Cash and investments as of December 31, 2014 consist of the following: Demand deposits Savings and money market $ $ Carrying Amount 449,990 45, ,957 Bank Balance $ 460,664 45,966 $ 506,630 Investments Authorized by the Town s Investment Policy The Town is required to invest its funds in accordance with Wisconsin Statute and 67.11(2). The Town does not have an investment policy with any specific provisions intended to limit exposure to investment rate risk, credit risk and concentration of credit risk. Disclosures Relating to 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. As of year-end, the Town had no investments except savings and money market accounts. Disclosures Relating to 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. Concentration of Credit Risk Concentration of credit risk is defined as an exposure to a number of counterparties engaged in similar activities and having similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions. The Town does not have an investment policy regarding concentration of credit risk. -16-

17 NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 2014 NOTE B - CASH AND INVESTMENTS - CONTINUED Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover collateral securities that are in the possession of an outside party. The Town does not have an investment policy that would limit the exposure to custodial credit risk for deposits. The Wisconsin State Deposit Guarantee Fund provides coverage for uninsured and uncollateralized cash and investments for up to $400,000 per deposito:i:y, in excess of FDIC coverage, but collection is not certain due to the limited size of the fund. At December 31, 2014, the Town had no deposits with financial institutions in excess of federal depository insurance limits. There may have been times during 2014 that deposits exceeded FDIC limits and the Town was relying on the Wisconsin State Deposit Guarantee Fund to insure its deposits or there may have been times when the Town had deposits greater than both FDIC and the Wisconsin State Deposit Guarantee Fund limits. The custodial risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be. able to recover the value of its investment or collateral securities that are in the possession.of another party. The Town does not have an investment policy tha:t would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does hot apply to a local government's indirect investment in securitie~ through the use of mutual funds or government investment pools... NOTE C - PROPERTY TAXES Property :taxes attach as an enforceable lien: on property as of.january 1. Property taxes are levied on or about December 1 and payable in.two installments on January 31 and July.31 the following calendar year. Special assessments and charges are payable in full on January 31. The Town bills and collects its own property taxes. and also collects taxes for the State, County, Area Vocational School, and Area Public Schools until January 31, at which time all uncollected real estate taxes are turned over to the respective counties for. collectiop.. Collection of the taxes and remittance of them to the appropriate. entities are accounted for in the Property Tax Agency Fund. Town property ta.x revenues are recognized when settlements are made with the County Treasurer; The 2014 tax roll that has been collected prior to December 31, 2014 has been set up as amounts due to other governmental linits and as unearned revenue for the Town's portion in the Property Tax. Agency Fiduciary Fund. -17-

18 NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 2014 NOTE D - LONG-TERM OBLIGATIONS Long-term obligations of the Town at December 31, 2014 consist of the following: Balance at Balance.at January 1, December 31, 2014 Additions Payments 2014 Note payable $ 92,435 $ 70,682 $ 92,435 $ 70L682 Current Rate Amount Maturities Governmental activities Bank note payable 2.25% $ 70,682 $ 23,038 $ 70L682 $ 23L038 The 2014 equalized valuation of the Town as certified by the Wisconsin Department of Revenue is $56,843,500. The legal debt limit and margin of indebtedness as of December 31, 2014, in accordancewithwisconsin State St itutes, is as follows: Debt limit {5% of $56,843,500) Deduct long-term debt applicable.to debt margin Margin of indebtedness $ 2,842,175 70,682 $ 2L771L49J.. Aggregatecash flow.requirenients for the retirement oflong-te):m J>r1ncipal.and interest on the note payable is as followsi ~overnmental Activities. Year ended December 31, Principal Interest Total ,038 1,607 ~4, ,562 1,083 24, , ,629.Totals $ 70L682 $ 3L237 $ 73L

19 NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 2014 NOTE E - EMPLOYEE RETIREMENT PLAN All eligible Town employees participate in the Wisconsin Retirement System (WRS), a cost-sharing, multiple-employer, defined benefit, public employee retirement system. All employees, initially employed by a participating WRS employer prior to July 1, 2011, expected to work at least 600 hours a year (440 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee's date of hire are eligible to participate in the WRS. All employees, initially employed by a participating WRS employer on or after July 1, 2011, and expected to work at least 1200 hours a year (880 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee's date of hire are eligible to participate in the WRS. Note: Employees hired to work nine or ten months per year, (e.g. teachers contracts), but expected to return year after year are considered to have met the one-year requirement. Effective the first day of the first pay period on or after June 29, 2011 the employee required contribution was changed to one-half of the actuarially determined contribution rate for general category employees, including teachers, and executives, and elected officials. Required contributions for protective contributions are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. Contribution rates for 2014 are: General (including teachers) Executives & Elected Officials Protective with Social Security Protective without Social Security Employee 7.00% 7.75% 10.10% 13.70% Employer 7.00% 7.75% 7.00% 7.00% The payroll for Town employees covered by the WRS for the year ended December 31, 2014 was $48,709. The employer's total payroll was $121,234. The total required contribution for the year ended December 31, 2014 was $6, 819, which consisted of $3,410, or 7. 00% of payroll from the employer and $3,409, or 7.00% of payroll from employees. Total contributions for the years ending December 31, 2013 and 2012 were $7,127 and. $0, respectively, equal to the required contributions for each year. Employees who retire at or after age 65 (62 for elected officials and 54 for protective occupation employees with less than 25 years of service, 53 for protective occupation employees with more than 25 years of service) are entitled to receive a retirement benefit. Employees may retire at age 55 (50 for protective occupation employees) and receive actuarially reduced benefits. The factors influencing the benefit are: (1) final average earnings, (2) years of creditable service, and (3) a formula factor. Final average earnings are the average of the employee's three highest years' earnings. Employees terminating covered employment before becoming eligible for a retirement benefit may withdraw their contributions and, by -19-

20 I Town of Wheatland, Wisconsin NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 2014 NOTE E - EMPLOYEE RETIREMENT PLAN - CONTINUED doing so, forfeit all rights to any subsequent benefit. For employees beginning participation on or after January 1, 1990, and no longer actively employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants employed prior to 1990 and on or after April 24, 1998 and prior to July 1, 2011 are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011 must have five years of credible service to be vested. The WRS also provide~ death and disability benefits for employees. Eligibility and the amount of all benefits are determined under Chapter 40 of the Wisconsin Statutes. The WRS issues an annual financial report that may be obtained by writing to the Department of Employee Trust Funds, P.O. Box 7931, Madison, WI NOTE F - EXCESS OF ACTUAL EXPENDITURES. OVER BUDGET The following line items had an excess of actual expenditures over budget for the year ended December 31, Individual Fund and Department General fund General government Public works Debt service.,., Transfer to other funds Fire department fund Fire protection Excess Expenditure $ 8,027 10,328 70,682 8,013 3,616 NOTE G - OTHER POST-EMPLOYMENT BENEFITS The Town offers no material post-employment benefits to employees upon separation from service. Employees receive no payments at or after separation from service. The only post-employment benefit an employee may receive is COBRA continuation of their health insurance, for which the separated employee must pay 100% of their premium. -20-

21 NOTES TO FINANCIAL STATEMENTS - CONTINUED December 31, 2014 NOTE H - RISK MANAGEMENT The Town is exposed to various risks of loss related to torts; theft; damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered by the purchase of commercial insurance. Settled claims from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. NOTE I - SUBSEQUENT EVENTS The Town has evaluated subsequent events through November 5, 2015, the date on which the financial statements were available to be issued. -21-

22 SUPPLEMENTAL INFORMATION -22-

23 STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS, AND CHANGES IN FUND BALANCE - MODIFIED CASH BASIS BUDGET AND ACTUAL GENERAL FUND For the year ended December 31, 2014 Receipts Taxes General property taxes Mobile home taxes Managed forest taxes Intergovernmental Federal FEMA grant State of Wisconsin FEMA grant Shared revenues Fire insurance tax Highway aid Highway grant-trip Exempt computer aid DNR aid in lieu of taxes DNR forest crop County Bridge aid Licenses and permits Business and occupational Building permits Nonbusiness licenses and permits Charges for services Fire services contract Public safety other Public health & animal control Recycling Other receipts Interest Sale of material supplies Miscellaneous Budgeted Amounts Original Final $ $ 266, 117 1,700 2, ,283 18,504 3,000 86,649 61, ,041 1, , ,360 17,000 17,000 1,500 5,250 6, ,267 20,850 3,476 18,504 3,450 86, ,041 1, , ,000 17,000 1,325 11,250 12,575 Actual $ 259,514 2,645 4, ,923 20,850 3,476 18,522 2,013 86, , , , ,010 17, ,734 1,321 14, ,892 Variance with Final Budget Favorable (Unfavorable) $ (6,603) 495 4,764 (1,344) 18 (1,437) 1,131 (398) 1, (125) ( 4) 14,000 (10,679) 3,317 Total receipts 466, , ,376 3,

24 STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS, AND CHANGES IN FUND BALANCE - MODIFIED CASH BASIS BUDGET AND ACTUAL GENERAL FUND - CONTINUED For the year ended December 31, 2014 Disbursements General government Town Board $ Legal General administration Financial administration General buildings and plant Insurance Public safety Fire protection Public works Highway and street maintenance Rubbish services Recycling Health and human services Culture and recreation Capital outlay General government Public works - buildings Public works - equipment Public works - roads Debt service Principal payments Interest expense Total disbursements Excess receipts over {under) disbursements Other financing sources (uses) Proceeds from note payable Transfer {to) from other funds Net increase {decrease) in fund balance Modified cash basis fund balance at January 1 Budgeted Amounts Original Final 12,414 $ 5,000 14,677 19,272 10,000 8,597 69,960 40,500 40, ,557 15, , ,008 50,000 18,000 84,008 21,753 3,552 25, ,605 {76,000) 6,000 6,000 {70,000) 53,340 14,775 $ 14,000 16,082 19,577 6,000 6,725 77,159 32,100 32, ,441 16, , ,376 50,000 5,200 18, ,576 21,753 3,552 25, ,806 {76,000) 6,000 6,000 {70,000) 53,340 Modified cash basis fund balance at December 31 $ {16,660) $ {16,660) $ -24- Actual 16,956 $ 13,316 19,949 16,866 4,594 13,505 85,186 20,221 20, ,420 16, , ,890 14,890 92,435 3,552 95, ,778 {43,402) 70,682 {2,013) 68,669 25,267 53,340 Variance with Final Budget Favorable {Unfavorable) {2,181) 684 {3,867) 2,711 1,406 {6,780) {8, 027) 11,879 11,879 {9,979) {331) {18) {10,328) ,376 50,000 {9,690) 18, ,686 {70,682) {70,682) ,598 70,682 {8,013) 62,669 95,267 78,607 $====9=5=,=2=6=7=

25 STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS, AND CHANGES IN FUND BALANCE - MODIFIED CASH BASIS BUDGET AND ACTUAL FIRE DEPARTMENT FUND For the year ended December 31, 2014 Receipts Charges for services Fire services contract Other receipts Interest Fundraising Miscellaneous Budgeted Amounts Original Final $ $ Actual $ 1, = , ,231 1,259 8,492 Variance with Final Budget Favorable (Unfavorable) _ $...:... 1,438 1, ,231 1,259 8,492 Total receipts 9,930 9,930 Disbursements Public safety Fire protection 3,616 3,616 (3,616} (3,616) Total disbursements 3,616 (3,616) Excess receipts over (under) disbursements 6,314 6,314 Other financing sources Transfer from general fund 2,013 2,013 2, 013 2, 013 Net change in fund balance 8,327 8,327 Modified cash basis fund balance at January 1 8,512 8,512 8,512 Modified cash basis fund balance at December 31 $==8=, =5=12== $ 8, 512 $ 16,839 $==8='=3=2=7= Note: No budgets are formally adopted for the fire department. -25-

26 OTHER REPORTS -26-

27 Cfltified P:ublk A<<OUDtGDff Your Business Solely Net 609 S. 4th Street, Suite 8 La Crosse, WI Phon~: Fax: INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Town Board Town of Wheatland De Soto, Wisconsin 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 iri Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities; the aggreg~te discretely presented component units, each major fund, and. the aggregate remaining fund information of the Town of Wheatland, Wisconsin, as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the Town of Wheatland's basic financial statements, and have issued our report thereon dated November 5, Internal Control Over Financial Reportin~ In planning and. performing. OU;J::" audit of the financial. statements I.we considered the Town's internal control over financial reporting (internal controi) to determine the audit procedures that. are appropriate in the. circumstances, for the pu~ose of expressing our.opj.nj.ons on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Town's internal control. Accordingly, we do not express an opinion on the effectiveness of the Town's internal control. A deficiency in internal control exi.sts 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 Tow'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. -27-

28 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a certain deficiency in internal control, described as item in the accompanying schedule of findings and responses that we consider to be a significant deficiency. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on. compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Town of Wheatland's Response to Findings The Town's response to the finding identified in our audit is described in the accompanying schedule of findings c:md responses. The Town' s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, weexpress no opinion on it.. Purpose o.f this Report The purpose of this report is solely to describe the. scope of our testing of internal control and compliance and the result;s of that testing, arid not. to provide an opinion on the effectiveness of the Town's. internal. control. or on compliance. This report is an :i:nte_gral.. part of an audit.. performed in accordance with. Governinent Auditing $taridards. in considering the Town's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Nove~er 5,

29 SCHEDULE OF FINDINGS AND RESPONSES Year ended December 31, 2014 Section I - Summary of Auditor s Results Financial Statements Type of auditor's report issued: Internal control over financial reporting: Significant deficiency{ies) identified? Significant deficiency(ies) identified considered to be material weaknesses? Noncompliance material to the financial statements? Unqualified X yes no yes X no yes _!_ no Section II - Current-Year Financial Statement Findings Lack of Segregation of Duties Criteria: Controls should be in place to separate incompatible accounting duties. Condition: One office staff has overlapping accounting duties. Effect: These conditions impair the Town's ability to prevent or detect errors and irregularities in a timely manner, if at all. Misappropriation of assets could occur. Cause: The size of the Town's office staff has prevented the separation of functions necessary to assure an adequate internal control structure. Recommendation: The Board should continue to be aware of this condition. Under these conditions, the most effective controls lie in the Board's knowledge of matters relating to the Town's operations. Response: The Board has elected not to hire additional staff which would permit proper segregation of duties as the Board has determined costs would outweigh benefits gained. The Board will closely review and monitor disbursements, receipts and financial reports. Section III - Prior-Year Financial Stateme~t Findings Finding: Segregation of duties The size of the Town's office staff has prevented the separation of functions necessary to assure an adequate internal control structure. Status: The Board has elected not to hire additional staff which would permit proper segregation of duties as the Board has determined costs would outweigh benefits gained. This is also a current-year finding. -29-