VILLAGE OF BUDA, ILLINOIS (BUREAU COUNTY) ANNUAL FINANCIAL REPORT FINANCIAL STATEMENTS - MODIFIED CASH BASIS AND INDEPENDENT AUDITORS REPORT

Transcription

1 (BUREAU COUNTY) ANNUAL FINANCIAL REPORT FINANCIAL STATEMENTS - MODIFIED CASH BASIS AND INDEPENDENT AUDITORS REPORT April 30, 2015 BIRKEY & NOBLE, P.C. Certified Public Accountant

2 TABLE OF CONTENTS P age Nu mber INDEPENDENT AUDITORS' REPORT 1a-1b FINANCIAL STATEMENTS Statement 1 - Government-Wide - Statement of Net Position - Modified Cash Basis Government-Wide - Statement of Activities - Modified Cash Basis Governmental Funds - State of Assets and Liabilities Arising From Cash Transactions - Modified Cash Basis Governmental Funds - Statement of Revenues, Expenditures, and Changes in Fund Balances - Modified Cash Basis General Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual 6 A - General Fund - Schedule of Expenditures - Modified Cash Basis - Compared to Budget Proprietary Funds - Statement of Net Position - Modified Cash Basis Proprietary Funds - Statement of Revenues, Expenses and Changes in Net Position - Modified Cash Basis Proprietary Funds - Statement of Cash Flows 11 Notes to Financial Statements REQUIRED SUPPLEMENTAL INFORMATION Statement 9 - General Fund - Balance Sheet - Modified Cash Basis Special Revenue Funds - Combining Balance Sheet - Modified Cash Basis Special Revenue Funds - Combining Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis Motor Fuel Tax Fund - Balance Sheet - Modified Cash Basis Motor Fuel Tax Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual Community Hall Fund - Balance Sheet - Modified Cash Basis Community Hall Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual Rescue Unit Fund - Balance Sheet - Modified Cash Basis Rescue Unit Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual Garbage Fund - Balance Sheet - Modified Cash Basis Garbage Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual Audit Fund - Balance Sheet - Modified Cash Basis Audit Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual 38 Continued.... BIRKEY & NOBLE, P.C.

3 TABLE OF CONTENTS (continued) P age N u mber Statement 22 - Tort Immunity Fund - Balance Sheet - Modified Cash Basis Tort Immunity Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual Social Security Fund - Balance Sheet - Modified Cash Basis Social Security Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual Retirement Fund - Balance Sheet - Modified Cash Basis Retirement Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual Unemployment Compensation Insurance Fund - Balance Sheet - Modified Cash Basis Unemployment Compensation Insurance Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual Mason Memorial Library Fund - Balance Sheet - Modified Cash Basis Mason Memorial Library Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual 43 Schedule B - Mason Memorial Library Fund - Schedule of Expenditures - Modified Cash Basis - Compared to Budget 44 Statement 32 - Revolving Loan Fund - Balance Sheet - Modified Cash Basis Revolving Loan Fund - Statement of Revenue, Expenditures and Changes in Fund Balance - Modified Cash Basis - Budget and Actual IMRF - Analysis of Fund Progress 46 Other Supplementary Information Statement 35 - Waterworks Fund - Balance Sheet - Modified Cash Basis Waterworks Fund - Statement of Revenue and Expense - Modified Cash Basis Sewer Fund - Combining Balance Sheet - Modified Cash Basis Sewer Fund - Statement of Fund Equity - Modified Cash Basis Sewer Fund - Statement of Revenue and Expense - Modified Cash Basis 50 Schedule C - All Funds - Schedule of Investments 51 Schedule of Taxes Extended and Collected 52 Schedule of Legal Debt Margin 53 List of Board of Trustees and Other Officials 53 BIRKEY & NOBLE, P.C.

4 BIRKEY & NOBLE, P.C. Professional Service Corporation Certified Public Accountant Joseph R. Birkey, CPA 726 South Main Street President Princeton, Illinois Phone: (815) Fax: (815) INDEPENDENT AUDITORS' REPORT To the Village Board Buda, Illinois We have audited the accompanying financial statements of the Village of Buda, Illinois as of and for the year ended April 30, 2015, and the related notes to the financial statements, which collectively compromise the Village s basic financial statements as listed in the table of contents. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis described in Note 1, 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 control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. The Village has omitted disclosures required by Governmental Accounting Standards Board Statement 45 Accounting and Financial Reporting for Post-Employment Benefits Other Than Pensions. The amount by which this disclosure would affect the financial statements is not reasonably determinable. Management has omitted the Management Discussion and Analysis that accounting principles generally accepted in the United States of America requires to be presented to supplement 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 basic financial statements is not affected by this missing information. Opinions In our opinion, except for the omissions discussed in the preceding paragraph, the financial statements referred to above present fairly, in all material respects, the respective financial position - modified cash basis of the governmental activities, the business-type activities and each major fund of the Village of Buda, Illinois as of April 30, 2015, and the respective changes in financial position - modified cash basis, thereof and the respective budgetary comparison for the General Fund for the year then ended in accordance with the basis of accounting as described in Note 1. -1a- MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND ILLINOIS CPA SOCIETY

5 Basis of Accounting We draw attention to Note 1 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 that matter. Disclaimer of Opinion on Other and Supplementary Information Other and Supplemental Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of Buda, Illinois basic financial statements. The budgetary comparison information, supplemental and other information on pages 6, 7, 8 and pages 31 through 54, which are the responsibility of management, 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. Although not a element of Required Supplementary Information the Village has opted to include Balance Sheets with the respective fund budgetary information for purposes of additional analysis. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 27, 2016, on our consideration of the Village 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 with the results of that testing, and not to provide an opinion on the 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 Village s internal control over financial reporting and compliance. January 27, 2016 BIRKEY & NOBLE, P.C. -1b- BIRKEY & NOBLE, P.C.

6 GOVERNMENT-WIDE - STATEMENT OF NET POSITION - MODIFIED CASH BASIS April 30, 2015 Statement 1 Assets Totals Governmental Business-type April 30, Activities Activities 2015 Current assets: Cash in bank $ 209,779 $ 175,051 $ 384,830 Other receivables 53,904-53,904 Investments 329,164 6, ,640 Due from other funds Inventory Total current assets $ 592,847 $ 181,527 $ 774,374 Noncurrent assets: Property and equipment $14,114,133 $ 3,574,640 $17,688,773 Accumulated depreciation (2,605,291) (1,217,494) (3,822,785) Total noncurrent assets $11,508,842 $ 2,357,146 $13,865,988 Deferred outflows of resources $ - $ - $ - Total assets $12,101,689 $ 2,538,673 $14,640,362 Liabilities Current liabilities: Accounts payable $ 48,496 $ 33,737 $ 82,233 Due to other funds Total current liabilities $ 48,496 $ 33,737 $ 82,223 Noncurrent liabilities: Notes payable $ 57,254 $ 566,956 $ 624,210 Deferred inflows of resources $ - $ - $ - Total liabilities $ 105,750 $ 600,693 $ 706,443 Net position Investment in capital assets, net of related debt $11,451,588 $ 1,790,190 $13,241,778 Restricted for: Loans receivable 219, ,366 Motor fuel tax 23,252-23,252 Unrestricted 301, , ,523 Net position $11,995,939 $ 1,937,980 $13,933,919 The accompanying notes are an integral part of the financial statements. See Independent Auditors' Report. -2- BIRKEY & NOBLE, P.C.

7 GOVERNMENT-WIDE - STATEMENT OF ACTIVITIES - MODIFIED CASH BASIS Year Ended April 30, 2015 Statement 2 Program Revenues Net (Expense) O p e rating Capital Revenue C h a r ges for Grants and G r a nts and April 30, Expenses Services C o n t r ibutions Contributions 2015 Functions/Programs Governmental activities: General government $ 320,079 $ 840 $ - $ - $( 319,239) Public safety 68, ( 68,004) Public works 108, ( 108,037) Culture and recreation 44,051 41, ( 2,156) Development Total governmental activities $ 540,171 $ 42,735 $ - $ - $( 497,436) Business-type activities: Sewer $ 86,253 $ 79,348 $ - $ - $( 6,905) Waterworks 83,134 74, ( 9,103) Total business-type activities $ 169,387 $ 153,379 $ - $ - $( 16,008) Total governmental and business-type functions/ programs $ 709,558 $ 196,114 $ - $ - $( 513,444) April 30 G o v e rnmental Business-type Total A c t ivities A c t ivities 2015 Change in net position: Net (expense) revenue $( 497,436) $( 16,008) $( 513,444) General revenues: Taxes: Sales taxes $ 27,439 $ - $ 27,439 Property 60,011-60,011 State income 52,242-52,242 Replacement 6,995-6,995 Franchise taxes and fees 2,893-2,893 Motor fuel 18,151-18,151 Other intergovernmental Unrestricted investment income 2, ,138 Miscellaneous 23,050-23,050 Transfers Total general revenues and transfers $ 193,309 $ 48 $ 193,357 Change in net position $( 304,127) $( 15,960) $( 320,087) Net position - beginning 12,300,066 1,953,940 14,254,006 Net position - ending $11,995,939 $ 1,937,980 $13,933,919 The accompanying notes are an integral part of the financial statements. See Independent Auditors' Reports. -3- BIRKEY & NOBLE, P.C.

8 Statement 3 VILLAGE OF BUDA, ILLINOIS STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS - MODIFIED CASH BASIS GOVERNMENTAL FUNDS April 30, 2015 April 30 Total Other Governmental Motor Fuel Rescue Revolving Community Nonmajor Funds General Tax Library Unit Loan Garbage Hall Funds 2015 ASSETS Cash $ 94,679 $ - $ 881 $ - $ 75,959 $ 32,217 $ - $ 6,043 $ 209,779 Investments 88,799 23, ,610-89, ,164 Other receivables , ,904 Inventory Land - donated 1,116, ,116,000 Due from other funds Total assets $1,299,478 $ 23,252 $ 128,491 $ - $ 219,366 $ 32,217 $ - $ 6,043 $ 1,708,847 LIABILITIES AND FUND BALANCE Liabilities: Accounts payable $ 57,254 $ - $ 528 $ 31,946 $ - $ - $ 5,428 $ 10,594 $ 105,750 Due to other funds Total liablities $ 57,254 $ - $ 528 $ 31,946 $ - $ - $ 5,428 $ 10,594 $ 105,750 Fund balance: Restricted (deficit) $1,242,224 $ - $ 127,963 $( 31,946) $ - $ 32,217 $( 5,428) $( 4,551) $ 1,360,479 Nonspendable Committed Assigned Unassigned (deficit) - 23, , ,618 Total fund balance (deficit) $1,242,224 $ 23,252 $ 127,963 $( 31,946) $ 219,366 $ 32,217 $( 5,428) $( 4,551) $ 1,603,097 Total liabilities and fund balance $1,299,478 $ 23,252 $ 128,491 $ - $ 219,366 $ 32,217 $ - $ 6,043 $ 1,708,847 Total fund balance - total governmental funds $ 1,603,097 Amounts reported for governmental activities in the statement of net assets is different because: Capital assets of $12,998,133 net of accumulated depreciation of ($2,605,291) are not financial resources and therefore are not reported in the funds. See Notes to financial statements for additional details. 10,392,842 Net assets of governmental activities $11,995,939 The accompanying notes are an integral part of the financial statements. See Independent Auditors' Reports. -4- BIRKEY & NOBLE, P.C.

9 Statement 4 VILLAGE OF BUDA, ILLINOIS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - MODIFIED CASH BASIS GOVERNMENTAL FUNDS Year Ended April 30, Motor Other Total Fuel Rescue Revolving Community Nonmajor Governmental General Tax Library Unit Loan Garbage Hall Funds Funds Revenues Received Taxes $ 22,291 $ - $ 4,495 $ - $ - $ 3,776 $ 2,388 $ 27,061 $ 60,011 Intergovernmental 86,246 18,151 1, ,500 License Fines and forfeits Charges for services - - 1, , ,895 Cable franchise 2, ,893 Interest , ,090 Miscellaneous 16, , ,940 Total revenue $ 129,578 $ 18,156 $ 7,947 $ 4,828 $ 1,336 $ 43,875 $ 3,263 $ 27,061 $ 236,044 Expenditures Disbursed Current: General government $ 34,459 $ - $ - $ - $ - $ - $ - $ 40,751 $ 75,210 Public safety 45, , ,004 Public works 38,958 35, , ,037 Culture and recreation 11,534-29, ,023-44,051 Development Debt service Total expenditures $ 130,064 $ 35,120 $ 29,494 $ 22,891 $ - $ 33,959 $ 3,023 $ 40,751 $ 295,302 Revenues received over (under) expenditures disbursed $( 486) $( 16,964) $( 21,547) $( 18,063) $ 1,336 $ 9,916 $ 240 $( 13,690) $( 59,258) Transfer from (to) other funds $ - $ - $ - $ - $ - $ - $ - $ - $ - Total other financing sources (uses) $ - $ - $ - $ - $ - $ - $ - $ - $ - Revenue and other financing sources over (under) expenditures and other financing uses $( 486) $( 16,964) $( 21,547) $( 18,063) $ 1,336 $ 9,916 $ 240 $( 13,690) $( 59,258) Fund balance, beginning of year 1,242,710 40, ,510 ( 13,883) 218,030 22,301 ( 5,668) 9,139 1,662,355 Fund balance, end of year $1,242,224 $ 23,252 $ 127,963 $( 31,946) $ 219,366 $ 32,217 $( 5,428) $( 4,551) $1,603,097 Net change in fund balances - Total Governmental Funds $( 59,258) Amounts reported for governmental activities in the statement of activities as different because: Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount of depreciation of $244,869 less capitalized expense of $-0-. ( 244,869) Change in net assets of governmental activities $( 304,127) The accompanying notes are an integral part of the financial statements. See Independent Auditors' Reports. -5- BIRKEY & NOBLE, P.C.

10 Statement 5 VILLAGE OF BUDA, ILLINOIS GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - MODIFIED CASH BASIS BUDGET AND ACTUAL Year Ended April 30, 2015 Original and Over Final Budget Actual ( U nder) Revenues Received Property taxes $ 28,000 $ 22,291 $( 5,709) Other taxes: Sales 23,000 27,439 4,439 State income 50,000 52,242 2,242 Personal property replacement 8,000 6,565 ( 1,435) Liquor license 1, ( 625) Fines 2, ( 2,060) Cable franchise 1,500 2,893 1,393 Grants 1,000 - ( 1,000) Rentals Interest 2, ( 1,804) Farm - net 10,600 12,921 2,321 All other 32,300 3,316 ( 28,984) Total revenue $ 160,800 $ 129,578 $( 31,222) Expenditures Disbursed Public safety $ 66,500 $ 45,113 $ 21,387 Accounts and finance 44,925 34,459 10,466 Parks 21,400 11,534 9,866 Streets 106,150 38,958 67,192 Total expenditures $ 238,975 $ 130,064 $ 108,911 Revenues received over (under) expenditures disbursed $( 78,175) $( 486) $ 77,689 Other financing sources (uses) Operating transfers ( 30,000) - 30,000 Revenue and other sources over (under) expenditures and other uses $( 108,175) $( 486) $ 107,689 Fund balance, May 1 1,242,710 1,242,710 - Fund balance, April 30 $1,134,535 $1,242,224 $ 107,689 The accompanying notes are an integral part of the financial statements. See Independent Auditors' Report. -6- BIRKEY & NOBLE, P.C.

11 GENERAL FUND SCHEDULE OF EXPENDITURES - MODIFIED CASH BASIS COMPARED TO BUDGET Year Ended April 30, 2015 Statement A Original and Over Final Budget Actual ( U nder) Public safety Salaries $ 35,000 $ 36,812 $( 1,812) Maintenance - vehicles, equipment 1,800 2,127 ( 327) Travel Training Other professional services 50 1,050 ( 1,000) Communications 500 1,033 ( 533) Gas & oil 3,000 2, Supplies 1, Uniforms 2, ,557 Miscellaneous 1, ,190 Capital outlay 21,000-21,000 Total public safety $ 66,500 $ 45,113 $ 21,387 Accounts and finance Salaries $ 13,000 $ 15,148 $( 2,148) Maintenance - building 1,500-1,500 Insurance 2,000-2,000 Telephone and utilities 7,000 7,078 ( 78) Rental Travel Postage Printing - publishing Legal 4,500-4,500 Other professional services 8, ,744 Dues 800 1,348 ( 548) Other 2,525 1,170 1,355 Supplies 2,700 9,193 ( 6,493) Capital outlay 2,000-2,000 Total accounts and finance $ 44,925 $ 34,459 $ 10,466 Continued BIRKEY & NOBLE, P.C.

12 GENERAL FUND SCHEDULE OF EXPENDITURES - MODIFIED CASH BASIS COMPARED TO BUDGET Year Ended April 30, 2015 Schedule A (continued) Original and Over Final Budget Actual ( U nder) Parks Salaries $ 2,500 $ 2,150 $ 350 Maintenance - buildings, vehicles and grounds 8,600 2,436 6,164 Insurance Utilities ( 132) Gas & oil Supplies 2,400 5,500 ( 3,100) Miscellaneous ( 616) Capital outlay 7,000-7,000 Total parks $ 21,400 $ 11,534 $ 9,866 Streets Salaries $ 22,000 $ 17,545 $ 4,455 Insurance - employee ( 185) Maintenance 54,500 2,737 51,763 Insurance - general Street lighting 9,000 5,348 3,652 Engineering services 5,500 1,049 4,451 Gas & oil 4,000 5,416 ( 1,416) Supplies 3,200 3,251 ( 51) Miscellaneous 1, ,433 Capital outlay 5,500 2,810 2,690 Total streets $106,150 $ 38,958 $ 67,192 Total expenditures disbursed $238,975 $130,064 $108,911 The accompanying notes are an integral part of the financial statements. See Independent Auditors' Report. -8- BIRKEY & NOBLE, P.C.

13 PROPRIETARY FUNDS STATEMENT OF NET POSITION - MODIFIED CASH BASIS April 30, 2015 Statement 6 Waterworks S ewer April 30 Fund Fund 2015 ASSETS Current assets Cash in bank $ 23,815 $ 151,236 $ 175,051 Investments 6,476-6,476 Total current assets $ 30,291 $ 151,236 $ 181,527 Property and equipment Vehicle $ 3,758 $ - $ 3,758 Machinery and equipment 20,349-20,349 Distribution system 783,051 2,762,446 3,545,497 Construction in progress Land - 5,036 5,036 Total - at cost $ 807,158 $2,767,482 $3,574,640 Less: accumulated depreciation 370, ,152 1,217,494 Book value $ 436,816 $1,920,330 $2,357,146 Total assets $ 467,107 $2,071,566 $2,538,673 LIABILITIES AND FUND EQUITY Current liabilities Bank overdraft $ - $ - $ - Loan payable 33,737-33,737 Due to General Fund Total current liabilities $ 33,737 $ - $ 33,737 Long-term liabilities Bonds & notes payable $ - $ 566,956 $ 566,956 Total liabilities $ 33,737 $ 566,956 $ 600,693 Net position $ 433,370 $1,504,610 $1,937,980 The accompanying notes are an integral part of the financial statements. See Independent Auditors Report. -9- BIRKEY & NOBLE, P.C.

14 Statement 7 VILLAGE OF BUDA, ILLINOIS PROPRIETARY FUNDS STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - MODIFIED CASH BASIS April 30, 2015 Totals Waterworks S ewer April 30 Fund Fund 2015 Operating revenue User charges collected $ 73,881 $ 79,348 $ 153,229 Tap on fees Sales of materials and sundry Total operating revenue $ 74,031 $ 79,348 $ 153,379 Operating expense Salaries $ 27,759 $ 2,400 $ 30,159 Employee insurance Maintenance 3,014 1,696 4,710 General insurance Utilities 11,169 5,711 16,880 Postage 1,256-1,256 Printing - publishing Gas and oil Supplies 10,396-10,396 Engineering and other professional services 10,539-10,539 Sundry Total operating expense $ 64,133 $ 9,807 $ 73,940 Net income (loss) from operations before depreciation $ 9,898 $ 69,541 $ 79,439 Depreciation of plant and equipment 19,001 53,030 72,031 Net income (loss) from operations $( 9,103) $ 16,511 $ 7,408 Nonoperating revenue (expense) Interest income $ 8 $ 40 $ 48 Interest expense - ( 23,416) ( 23,416) State grants Total nonoperating revenue (expense) $ 8 $( 23,376) $( 23,368) Net income (loss) for the year before operating transfers $( 9,095) $( 6,865) $( 15,960) Operating transfers Change in net position $( 9,095) $( 6,865) $( 15,960) The accompanying notes are an integral part of the financial statements. See Independent Auditors Report BIRKEY & NOBLE, P.C.

15 PROPRIETARY FUNDS STATEMENT OF CASH FLOWS INCREASE (DECREASES) IN CASH AND CASH EQUIVALENTS Year Ended April 30, 2015 Statement 8 April 30 Sewer Totals Funds Waterworks 2015 Cash flows from operating activities Cash received from customers $ 79,348 $ 74,031 $ 153,379 Cash payments to suppliers for goods and services ( 7,407) ( 36,374) ( 43,781) Cash payments to employees for services ( 2,400) ( 27,759) ( 30,159) Net cash provided (used) by operating activities $ 69,541 $ 9,898 $ 79,439 Cash flows from noncapital financing activities Operating transfers in (out) $ - $ - $ - Repayment of interfund loans Net cash provided (used) by noncapital financing activities $ - $ - $ - Cash flows from capital and related financing activities Loan proceeds $ - $ - $ - Acquisition and construction of capital assets Principal paid on notes payable (35,622) ( 5,004) ( 40,626) Interest paid on notes payable (23,416) - ( 23,416) Repayment of interfund loans Net cash provided (used) by capital and related financing activities $(59,038) $( 5,004) $( 64,042) Cash flows from investing activities (Purchase) sale of investments $ - $( 758) $( 758) Interest on investments Net cash provided (used) by investing activities $ 40 $( 750) $( 710) Net increase (decrease) in cash and cash equivalents $ 10,543 $ 4,144 $ 14,687 Cash and cash equivalents, beginning of year 140,693 19, ,364 Cash and cash equivalents, end of year $151,236 $ 23,815 $ 175,051 Reconciliation of net operating income (loss) to net cash provided by operating activities: Nonoperating income (loss) $ 16,511 $( 9,103) $ 7,408 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation and amortization $ 53,030 $ 19,001 $ 72,031 Changes in assets and liabilities: Accounts receivable Accounts payable Total adjustments $ 53,030 $ 19,001 $ 72,031 Net cash provided (used) by operating activities $ 69,541 $ 9,898 $ 79,439 The accompanying notes are an integral part of the financial statements. See Independent Auditors' Reports BIRKEY & NOBLE, P.C.

16 NOTES TO FINANCIAL STATEMENTS April 30, 2015 Note 1 - Summary of Significant Accounting Policies A. Fund Accounting The accounts of the Village 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 accounts, as appropriate. Government 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 various funds are grouped in the financial statements, in this report, into the following fund types: Governmental Fund Type (Governmental Activities) General Fund - The General Fund is the general operating fund of the Village. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trust, or major capital projects) that are legally restricted to expenditures for specified purposes. Proprietary Fund Type (Business-type Activities) Enterprise Funds - The Waterworks and Sewer Funds are used to account for operations that are financed and operated in a manner similar to private business enterprise - where the intent of the governing body is that the cost of providing services to the general public on a continuing basis be financed or recovered primarily through user charges. B. Financial Reporting Except for the use of a modified cash basis of accounting described later, accounting policies of the Village of Buda, Illinois conform to accounting principles generally accepted in the United States of America as applicable to governments. The following is a summary of the significant policies. Generally accepted accounting principles include all relevant Governmental Accounting Standards Board (GASB) pronouncements. In the government-wide financial statements and the fund financial statements for the proprietary funds, Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, have been applied, to the extent they are applicable to the modified cash basis of accounting, unless those pronouncements conflict with or contradict GASB pronouncements, in which case GASB prevails. 1. Financial Reporting Entity Generally accepted accounting principles require the financial reporting entity to include the primary government and other organizations for which the primary government is financially accountable (component units). Financial accountability includes the primary government s ability to appoint a voting majority of the organization s governing body, and the ability to impose will on an organization if an organization is fiscally dependent on the primary government. Based on this guidance, management has determined there are no component units required to be included in the Village s basic financial statements BIRKEY & NOBLE, P.C.

17 NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, Basis of Presentation Management Discussion & Analysis - Provides introductory information on basic financial statements and an analytical overview of the Village s financial activities. Management has omitted this in this report. Government wide financial statements The Statement of Net Position and Statement of Activities display information about the reporting government as a whole. They include all funds of the reporting entity. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. B. Fixed Assets Fund financial statements Fund financial statements of the reporting entity are organized into funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitutes its assets, liabilities, fund equity, revenues, and expenditures/expenses. Funds are organized into two major categories: governmental and proprietary. An emphasis is placed on major funds within the governmental category. All funds are considered major. Required supplementary information Budgetary comparison schedules are presented. The original budget for revenues and expenditures is presented in comparison with the actual final budgetary revenues and expenditures. The Village implemented GASB #34 to account for its investment in property and equipment. Accordingly, fixed assets used in governmental fund type operations and public domain ("infrastructure") general fixed assets consisting of certain improvements including roads, bridges, curbs and gutters, drainage systems, are accounted for in the General Fund. Acquisitions of such property and equipment are included in expenditures of the acquiring fund and adjusted for presentation on the Government and Statement of Net Assets. The costs of property and equipment used by the Enterprise Funds are capitalized and depreciated over the estimated useful lives of such assets. Except for the costs of a vehicle and pumping equipment acquired for the fiscal years 1984 through 1987, and a major improvement to the distribution system placed into service in November, 1988 and financed by a State of Illinois grant, all other equipment and costs of the system (pumping and distribution) are considered to have been fully depreciated in the years prior to May 1, 1987; such fully depreciated assets do not appear in the Village's books and financial statements. Construction costs of the sewer system were completed in fiscal year April 30, 2001 and are being depreciated. Methods and lives used in providing depreciation on the above described assets included in the Waterworks Fund financial statements are as follows: -13- BIRKEY & NOBLE, P.C.

18 NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2015 Property Classification Life Method Vehicle 5 years Straight-line Machinery and equipment 20 years Straight-line Water distribution system 40 years Straight-line Sewer distribution system 50 years Straight-line D. Measurement Focus and Basis of Accounting Measurement focus is a term used to describe "how" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus In the government-wide Statement of Net Position and the Statement of Activities, both governmental and business-type activities are presented using the economic resources measurement focus. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate: (1) Governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. (2) Proprietary funds utilize an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net assets (or cost recovery), financial position and cash flows. All assets and liabilities (whether current or noncurrent, financial or nonfinancial) associated with their activities are reported. Proprietary fund equity is classified as net assets. Basis of Accounting In the government-wide Statement of Net Position and Statement of Activities and the fund financial statements, governmental and business-type activities are presented using a modified cash basis of accounting. This basis recognizes assets, liabilities, net position/fund equity, revenues, and expenditures/expenses when they result from cash transactions with provisions for depreciation and amortization in the government-wide statements and proprietary fund statements. This basis is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. As a result of the use of this modified cash basis of accounting, certain assets and their related revenues (such as accounts receivable and revenue for billed or provided services not yet collected) and certain liabilities and their related expenses (such as accounts payable and expenses for goods or services received but not yet paid, and accrued expenses and liabilities) are not recorded in these financial statements BIRKEY & NOBLE, P.C.

19 NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2015 If the Village utilized the basis of accounting recognized as generally accepted, the fund financial statements for governmental funds would use the modified accrual basis of accounting, while the fund financial statements for proprietary fund types would use the accrual basis of accounting. All government-wide financials would be presented on the accrual basis of accounting. E. Budgets And Budgetary Accounting The budget for all governmental fund types is prepared on the modified cash basis of accounting, which is the same basis that is used in financial reporting. This allows for comparability between budget and actual amounts. The budget was passed on January 14, For each fund, total fund expenditures may not legally exceed the budgeted expenditures. The budget lapses at the end of each fiscal year. Encumbrances accounting is not employed. The Village adopts its annual budget in accordance with Chapter 65, Paragraph 5/ of the Illinois Compiled Statutes, as follows: (1) The budget is submitted to the Village Board as a proposed operating budget for the fiscal year commencing May 1. The operating budget includes proposed expenditures and the means of financing them. (2) A public hearing is conducted to obtain taxpayer comments. (3) Prior to May 1, the budget is legally adopted through passage of an ordinance. (4) Budgeted amounts may be transferred between object classes within a fund at any time. The annual budget may be revised by a vote of two-thirds of the Village Board by deleting, adding to, or changing budgeted items. (5) No revision of the budget can be made increasing the budget in the event funds are not available. The Village also adopts an informal operating budget for proprietary funds containing estimated revenues and expenses, which is used as a management control device. F. Encumbrances Encumbrance accounting, by which means purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed as an extension of formal budgetary integration by the Village. Unexpended appropriations are treated as having lapsed as of the end of the fiscal year. G. Total Columns On Combined Statements Total Columns on the Combined Statements are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data BIRKEY & NOBLE, P.C.

20 NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2015 H. In-Kind Donations Donated services and commodities are not given recognition in the accounts. securities are recorded at fair market value as of the date of the gift. Donated I. Investments Securities in the various funds are stated at cost which approximates market value. J. Inventory The Village had no inventory on hand at year end. K. Comparative Data Comparative total data for the prior year has not been presented in the accompanying financial statements. L. Use of Estimates The preparation of financial statements in conformity with generally accepted auditing principles requires management to make estimates and assumptions that affect the reporting amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. M. Equity Classification Government-Wide Statements Equity is classified as net position and displayed in three components: (1) Invested in capital assets, net of related debt - Consists of capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvements of those assets. (2) Restricted net position - Net assets with constraints placed on their use by external groups or by law through constitutional provisions or enabling legislation. (3) Unrestricted net position - All other net positions that do not meet the definition of "restricted" or "invested in capital assets, net of related debt" BIRKEY & NOBLE, P.C.

21 NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2015 Fund Financial Statements Proprietary fund equity is not classified the same as in the government-wide statements. Governmental fund equity is classified as fund balance. Fund balance is classified in five categories, as applicable: (1) Non-spendable fund balance Amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. (2) Restricted fund balance Amounts with constraints placed on their use by external groups or by law through constitutional provisions or enabling legislation. (3) Committed fund balance Amounts that can only be used for specific purposes as determined by formal action (an ordinance) of the Village s highest level of decision-making authority (the Village Board). The committed amounts cannot be used for any other purpose unless the Village Board takes the same formal action to remove or change the imposed constraints. (4) Assigned fund balance Amounts intended for a specific purpose which do not meet the criteria to be classified as restricted or committed. The Village Board, through ordinance establishing the Village s fund balance policy, has delegated to the Village President the authority to assign amounts to specific purposes. Pursuant to the Village s fund balance policy, any fund balance assigned by the Village President must be reported to the Village Board at its next regular meeting. The Village Board has the authority to remove or change the assigned fund balance with a simple majority vote. (5) Unassigned fund balance Amounts in the general fund that have not been assigned to other funds and that have not been restricted, committed, or assigned to specific purposes in the general fund. In other governmental funds, the unassigned fund balance classification is only used, as applicable, to report a deficit balance in that fund. When an expenditure is incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balance is available, the Village considers restricted amounts to have been spent first. When an expenditure is incurred for purposes for which amounts in any of the unrestricted fund balance classifications can be used, the Village considers committed amounts to have been spent first, followed by assigned amounts and then unassigned amounts. 2 - Property Taxes Property taxes are levied on a calendar year basis and become an enforceable lien on property as of January 1. Taxes are collected in the year subsequent to the year of levy. Billing and collecting is done by the Bureau County Treasurer - Collector who in turn remits to the Village its pro rata share. Property tax revenue is recognized when received. Taxes were paid to the Village in September, 2014, October, 2014 and February, BIRKEY & NOBLE, P.C.

22 NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2015 The following are the tax rate limits permitted by state law and local referendum and the actual rates levied for 2014 per $100 of assessed valuation: Village valuation $ 2,982,129 Type of Tax Limit Rate Extension Corporate $ 14,000 Community Hall ,620 Retirement As Needed ,300 Garbage ,675 Street lighting ,923 Library ,830 Police protection ,756 Social Security As Needed ,300 Audit As Needed ,610 Liability insurance As Needed ,800 Unemployment As Needed $ 38,364 The Village is limited under state law to aggregate indebtedness of 8.625% of assessed valuation. This limitation does not apply to indebtedness used to finance water or sewer facilities mandated by federal or state agencies. 3 - Excesses Of Expenditures Over Appropriations In Individual Funds Expenditures exceeded amounts appropriated for the Retirement, Garbage and Audit Funds during the fiscal year ended April 30, Appropriations will be adjusted in future years to correct this excess of expenditures over appropriations. 4 - Garbage Fund - Contract The Village has a contract with Illinois Valley Waste Services for the disposition of garbage from September 1, 2013 to August 31, 2014 at $12.46 per unit and from September 1, 2014 to August 31, 2015 at $12.84 per unit. 5 - Casualty Insurance and Risk Management The Village is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Village carried commercial coverage for all other risks of loss. There have been no significant reductions in insurance coverage in the prior year, and settled claims have not exceeded coverage in any of the past three fiscal years. The Village of Buda is a member of the Illinois Municipal League Risk Management Association. The Association is an unincorporated not-for-profit organization formed to provide participating Illinois municipalities a cooperative program of risk management, loss coverage and claims administration. The program includes the creation of a self-insurance pool and the purchase of excess insurance covering workers' compensation, auto and general liability, auto physical damage, and other property damage BIRKEY & NOBLE, P.C.

23 NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2015 Pro-rata member assessments may be made by the Association to cover deficits which might occur but only after all equity and reserves have been depleted. In the event of termination of the Association by its members, assets will be distributed pro-rata to members after payment or provision for payment of all expenses and claims. 6 - Other Taxes - (Intergovernmental Revenues) The Illinois Personal Property Tax was eliminated effective January 1, A replacement income tax was implemented by the State to replace this loss of revenue effective July 1, Collections by the State are allocated to each taxing district on the basis of 1978 tax share of personal property extensions. Revenue from this source can be recorded in any fund. The Village of Buda has allocated this particular tax revenue to the General and Library Funds. This caption also includes the Village's share of state imposed income and motor fuel taxes, and sales tax imposed locally but collected at the state level. 7 - Interfund Receivables and Payables There were no interfund receivables or payables as of April 30, Cash and Investments and Pledge of Collateral by Village's Depository At April 30, 2015, no securities were pledged in the name of the Village. According to the Illinois State Treasurer, Village deposits in the Illinois Funds are fully guaranteed through a combination of federal insurance and pledge of investment securities. The Village had $730,858 in checking, passbook accounts, Certificates of Deposit, and other deposits with The Illinois Fund at April 30, Accordingly, as of April 30, 2015, the Village had deposits which were under (over) collateralized. Information to determine either the existence or extent of uncollateralized deposits occurring throughout the fiscal year is not readily available. A summary of the above is as follows: Insured Credit Risk Pledges of U nder Over T otal (FDIC Limit Collateral c o l later- c o l later- Name D e posit and IPTIP) (FMV) alized alized Peoples National Bank $531,225 $531,225 $ - $ - $ - Midland States Bank: Mason Memorial Library 19,380 $ 19, Edward Jones 10, ,644 - Illinois Public Treasurers' Investment Pool 169,609 $169, Total deposits $730,858 Total deficiency in collateral $ 10,644 $ BIRKEY & NOBLE, P.C.

24 NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, 2015 It is the Village s policy to invest public funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Village and conforming to all state and local statutes governing the investment of public funds. Custodial risk is the risk that in the event of a bank failure, the Village s deposits may not be returned to the Village or the Village will be unable to recover collateral securities in possession of an outside party. As of April 30, 2014 all funds on deposit were secured and did not exceed FDIC limits. The Village cash at April 30, 2015, consisted of checking accounts with local financial institutions. Investments consist of savings accounts and certificates of deposit with local financial institutions and money market accounts with US Bank of Springfield, IL. The Village s certificates of deposit have original maturities from 6 to 24 months. The cash and investments at April 30, 2015 are as follows: Government-Wide Statement of Net Position (Book Balance) Bank Balance Cash $ 384,830 $ 395,218 Investments 335, ,640 Total cash and investments $ 720,470 $ 730,858 Cash and investments are categorized in accordance with risk factors created by the governmental reporting standards. Type 1 - Fully insured FDIC $ 709,826 $ 720,214 Type 2 - Secured by securities pledged to the Village but in the Bank s name - - Type 3 - Uninsured 10,644 10,644 Total $ 720,470 $ 730, BIRKEY & NOBLE, P.C.

25 NOTES TO FINANCIAL STATEMENTS (CONTINUED) April 30, Interfund Transfers Operating Transfers Transfers In Out Fiscal Year April 30, 2015 Sewer Reserve Fund Sewerage Fund $ 4,464 $ - Sewer Bond and Interest Fund Sewer Operations Fund $ - $ 59,038 Sewerage Fund 60,000 - Total Sewer Bond and Interest Fund $ 60,000 $ 59,038 Sewererage Fund Sewer Operations Fund $ 17,418 $ - Sewer Bond and Interest Fund 59,038 - Total Sewer Operations Fund $ 76,456 $ - Sewer Operations Fund General Fund $ - $ - Sewerage Fund - 17,418 Sewer Reserve Fund - 4,464 Sewer Bond and Interest Fund - 60,000 Total Sewerage Fund $ - $ 81,882 General Fund Social Security Fund $ - $ - Motor Fuel Tax Fund - - Total General Fund $ - $ - Social Security Fund General Fund $ - $ - Waterworks Fund General Fund $ - $ - Fiscal Year April 30, 2014 Sewer Reserve Fund Sewerage Fund $ 4,836 $ - Sewer Bond and Interest Fund - 7,319 Total Sewer Reserve Fund $ 4,836 $ 7,319 Sewer Bond and Interest Fund Sewer Operations Fund $ - $ 59,488 Sewerage Fund 65,000 - Sewer Reserve Fund 7,319 - Total Sewer Bond and Interest Fund $ 72,319 $ 59,488 Sewer Operations Fund Sewerage Fund $ 6,059 $ - Sewer Bond and Interest Fund 59,488 - Total Sewer Operations Fund $ 65,547 $ - Sewerage Fund Sewer Operations Fund $ - $ 6,059 Sewer Reserve Fund - 4,836 Sewer Bond and Interest Fund - 65,000 Total Sewerage Fund $ - $ 75,895 General Fund Community Hall Fund $ - $ - Community Hall Fund General Fund $ - $ - Interfund transfers within the Sewer Fund were established by a bond ordinance. The Sewerage Fund collects the user fees and disburses those funds for operations, reserves and bond interest payments BIRKEY & NOBLE, P.C.