SHAWANO COUNTY Shawano, Wisconsin

Transcription

1 Shawano, Wisconsin FINANCIAL STATEMENTS Including Independent Auditors Report As of and for the Year Ended December 31, 2015

2 TABLE OF CONTENTS As of and for the Year Ended December 31, 2015 Independent Auditors' Report i iii Basic Financial Statements Statement of Net Position 1 Statement of Activities 2 Balance Sheet Governmental Funds 3 4 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 5 Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds 6 7 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of the Governmental Funds to the Statement of Activities 8 Statement of Net Position Proprietary Funds 9 10 Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds Statement of Cash Flows Proprietary Funds Statement of Assets and Liabilities Agency Fund 15 Notes to Financial Statements Required Supplementary Information Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund 56 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Human Services Fellman 57 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Human Services Lakeland 58 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual County Roads and Bridges 59 Schedule of Proportionate Share of the Net Pension Asset Wisconsin Retirement System 60 Schedule of Employer Contributions Wisconsin Retirement System 60 Other Postemployment Benefits Plan - Schedule of Funding Progress 61 Notes to Required Supplementary Information 62

3 TABLE OF CONTENTS (cont.) As of and for the Year Ended December 31, 2015 Supplementary Information Detailed Comparison of Budgeted and Actual Revenues General Fund Detailed Comparison of Budgeted and Actual Expenditures General Fund Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual Debt Service 69 Combining Balance Sheet Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Combining Statement of Net Position Internal Service Funds Combining Statement of Revenues, Expenses and Changes in Net Position Internal Service Funds Combining Statement of Cash Flows Internal Service Funds 78 79

4 Baker Tilly Virchow Krause, LLP Ten Terrace Ct, PO Box 7398 Madison, WI tel fax bakertilly.com INDEPENDENT AUDITORS' REPORT To the County Board Shawano County Shawano, Wisconsin Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Shawano County, Wisconsin, as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise Shawano County'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 accounting principles generally accepted in the United States of America; this includes 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. Auditors' 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 auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control over financial reporting relevant to Shawano County'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 Shawano County'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. Page i

5 To the County Board Shawano County Opinions In our opinion, based on our audit, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Shawano County, Wisconsin, as of December 31, 2015, 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. Emphasis of Matter As discussed in Note I, Shawano County adopted the provisions of GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date - an amendment of GASB Statement No. 68, effective January 1, Our opinions are not modified with respect to this matter. Other Matters Prior Year Comparative Information The financial statements include partial prior year comparative information. Such information does not include all of the information required to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the government's financial statement for the year ended December 31, 2014, from which such partial information was derived. The financial statements of Shawano County as of December 31, 2014, were audited by other auditors whose report dated July 13, 2015, expressed an unmodified opinion on those statements. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the required supplementary information as listed in the table of contents be 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 in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require 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 opinions on the basic financial statements are not affected by this missing information. Page ii

6 To the County Board Shawano County Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Shawano County's basic financial statements. The supplementary information as listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we will issue a report on our consideration of Shawano County'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 Shawano County's internal control over financial reporting and compliance. Madison, Wisconsin September 8, 2016 Page iii

7 STATEMENT OF NET POSITION As of December 31, 2015 (With summarized financial information as of December 31, 2014) Governmental Activities Primary Government Businesstype Totals Component Unit Activities ASSETS Cash and investments $ 25,633,990 $ 3,832,062 $ 29,466,052 $ 28,412,926 $ 123,834 $ 114,901 Receivables Taxes 15,400,972 3,982 15,404,954 14,888, Delinquent taxes 2,064,925-2,064,925 2,205, Accounts 1,982, ,752 2,357,023 1,057, Loans 690,119 5, , ,360 21,630 26,963 Other 832, ,154 1,080, Due from other governments 1,095,768 1,008,560 2,104,328 2,067, Inventories and prepaid items 612, ,030 1,466,110 1,602, Restricted Assets Net pension asset 2,440, ,363 2,933, Capital Assets, Nondepreciable Land 6,811, ,752 7,320,409 7,118, Construction in progress 1,087,710 23,281 1,110,991 1,361, Capital Assets, Depreciable Land improvements 2,937, ,611 3,567,606 3,461, Buildings and improvements 21,660,643 2,943,853 24,604,496 24,467, Machinery and equipment 8,590,768 16,459,872 25,050,640 23,814,540 12,918 12,918 Intangibles 3,922,110-3,922,110 3,369, Infrastructure 73,531,574-73,531,574 68,954, Less: Accumulated depreciation (56,073,602) (12,029,856) (68,103,458) (64,011,511) (12,918) (12,918) Total Assets 113,221,793 15,107, ,328, ,807, , ,864 DEFERRED OUTFLOWS OF RESOURCES Deferred outflows related to pension 2,487, ,900 2,982, LIABILITIES Accounts payable 832, , ,058 1,648, Accrued and other current liabilities 2,008,503 24,625 2,033,128 1,801, Accrued interest payable , Due to other governments 3,585,287 2,054 3,587,341 1,830, Unearned revenues 431,368 50, , , Long-term Obligations Due within one year 1,761, ,174 2,029,729 1,065, Due in more than one year 3,093, ,863 3,283,823 5,036, Total Liabilities 11,712, ,830 12,366,822 11,854, DEFERRED INFLOWS OF RESOURCES Property taxes 15,400,972-15,400,972 14,887, NET POSITION Net investment in capital assets 60,139,921 8,535,513 68,675,434 65,387, Restricted 6,006, ,363 6,499,348 3,516, Unrestricted 22,448,135 5,920,206 28,368,341 25,161, , ,864 TOTAL NET POSITION $ 88,595,041 $ 14,948,082 $ 103,543,123 $ 94,065,195 $ 145,464 $ 141,864 See accompanying notes to the financial statements. Page 1

8 STATEMENT OF ACTIVITIES For the Year Ended December 31, 2015 (With summarized financial information for the Year Ended December 31, 2014) Net (Expense) Revenue Program Revenues and Changes in Net Position Operating Capital Grants Primary Government Component Unit Charges for Grants and and Governmental Business-type Totals Functions/Programs Expenses Services Contributions Contributions Activities Activities Primary Government Governmental Activities General government $ 4,794,658 $ 1,893,531 $ 188,050 $ - $ (2,713,077) $ - $ (2,713,077) $ (2,891,929) $ - $ - Public safety 10,619, , ,510 - (9,733,286) - (9,733,286) (9,599,946) - - Public works 2,275,573 27,244 1,652, ,233 (2,003) - (2,003) (2,613,135) - - Health and human services 17,493,187 3,587,941 12,341,226 - (1,564,020) - (1,564,020) (1,332,032) - - Culture and recreation 2,074, , ,870 - (1,534,940) - (1,534,940) (1,165,489) - - Conservation and development 1,033, , ,330 - (401,778) - (401,778) (930,733) - - Interest and fiscal charges 119, (119,980) - (119,980) (91,988) - - Total Governmental Activities 38,411,957 6,799,561 14,949, ,233 (16,069,084) - (16,069,084) (18,625,252) - - Business-type Activities Highway 10,723,969 11,050, , , ,219 Utility 80,262 53, (26,486) (26,486) 14,815 Lakeland Industries 166, , ,104 7,104 39, Total Business-type Activities 10,970,260 11,277, , , , Total Primary Government $ 49,382,217 $ 18,077,396 $ 14,949,079 $ 594,233 (16,069,084) 307,575 (15,761,509) (17,937,498) - - Component Unit Economic Development $ 181,428 $ 53,915 $ 130,000 $ , General Revenues Taxes Property taxes, levied for general purposes 14,233,342-14,233,342 14,273, Property taxes, levied for debt service 654, , , Sales tax 2,361,380-2,361,380 2,244, Interest on delinquent taxes and other taxes 526, , , Federal and state grants and other contributions - not restricted to specific functions 1,312,032-1,312,032 1,313, Public gifts and grants 7,142-7, Interest and investment earnings 97,316 5, , ,263 1, Gain on disposal of assets 42,053 36,401 78, Miscellaneous 59,915-59,915 52, Transfers (454,565) 454, Total General Revenues and Transfers 18,839, ,340 19,335,476 19,039,448 1, Change in net position 2,770, ,915 3,573,967 1,101,950 3,600 1,389 NET POSITION - Beginning (as restated) 85,824,989 14,144,167 99,969,156 92,963, , ,475 NET POSITION - ENDING $ 88,595,041 $ 14,948,082 $ 103,543,123 $ 94,065,195 $ 145,464 $ 141,864 See accompanying notes to the financial statements. Page 2

9 BALANCE SHEET GOVERNMENTAL FUNDS As of December 31, 2015 (With summarized financial information as of December 31, 2014) General Human Services - Fellman Human Services - Lakeland ASSETS Cash and investments $ 16,186,909 $ 1,532,771 $ 1,483,384 Receivables Taxes 9,619,945 1,379,459 - Delinquent taxes 2,064, Accounts 236, , ,919 Loans Long term 12, Due from other funds 108, Advance to other funds 250, Due from other governments 681, ,161 11,887 Inventories 10, Prepaid items 232,430 5,477 12,840 TOTAL ASSETS $ 29,403,403 $ 3,503,411 $ 2,370,030 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable $ 304,138 $ 91,451 $ 266,007 Accrued and other current liabilities 1,508, Funds held in trust 30,527 1,661 1,525 Due to other funds Due to other governments 174,429 1,810,985 1,599,493 Unearned revenues 143, ,108 38,209 Total Liabilities 2,161,146 2,012,205 1,905,234 Deferred Inflows of Resources Property taxes 9,619,945 1,379,459 - Interest on delinquent taxes 260, Loans and long-term receivables 12, Other 56,068 24,425 - Total Deferred Inflows of Resources 9,948,784 1,403,884 - Fund Balances Nonspendable Inventories and prepaids 242,582 5,477 12,840 Delinquent property taxes 1,472, Long term advance to other funds 250, Restricted 277,363 81, ,956 Committed 2,247, Assigned 3,060, Unassigned (deficit) 9,743, Total Fund Balances 17,293,473 87, ,796 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 29,403,403 $ 3,503,411 $ 2,370,030 See accompanying notes to the financial statements. Page 3

10 County Roads and Bridges Debt Service Nonmajor Governmental Funds Total Governmental Funds $ 1,950,442 $ 15,717 $ 1,637,821 $ 22,807,044 $ 20,693,258 2,977, , ,935 15,400,972 14,888, ,064,925 2,205, ,279-54,795 1,976, , , , , , ,154 1,080, , , , , ,210 1,095,768 1,646, ,152 5, , , ,523 $ 5,376,721 $ 1,487,350 $ 3,361,417 $ 45,502,332 $ 43,011,772 $ - $ - $ 96,860 $ 758,456 $ 1,439, ,508,833 1,604, ,713 26, , , , ,585,287 1,828, , , , ,170 6,426,135 5,434,534 2,977, , ,935 15,400,972 14,887, , , , ,465 1,500,619 2,030, ,493 92,773 2,977,000 1,471,633 1,441,400 17,242,701 17,278, , , , ,472,726 1,584, , ,000-15,717 1,234,814 2,061,695 1,501,582 2,399, ,457 4,970,417 4,642, ,060,116 2,277, (961) 9,742,106 9,673,948 2,399,341 15,717 1,572,847 21,833,496 20,298,822 $ 5,376,721 $ 1,487,350 $ 3,361,417 $ 45,502,332 $ 43,011,772 See accompanying notes to the financial statements. Page 4

11 RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION As of December 31, 2015 (With summarized financial information as of December 31, 2014) Total Fund Balances - Governmental Funds $ 21,833,496 $ 20,298,822 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds. 61,487,875 59,880,533 Some receivables that are not currently available are reported as unavailable revenues in the fund financial statements but are recognized as revenue when earned in the government-wide statements. 1,841,729 2,390,628 The net pension asset does not relate to current financial resources and is not reported in the governmental funds 2,440,659 - Deferred outflows of resources related to pensions do not relate to current financial resources and are not reported in the governmental funds. 2,487,212 - Internal service funds are reported in the statement of net position as governmental activities 3,400,993 4,005,787 Some liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Bonds and notes payable (3,463,934) (4,279,143) Compensated absences (1,391,581) (1,342,228) Accrued interest on long-term obligations (41,408) (42,279) NET POSITION OF GOVERNMENTAL ACTIVITIES $ 88,595,041 $ 80,912,120 See accompanying notes to the financial statements. Page 5

12 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended December 31, 2015 (With summarized financial information for the Year Ended December 31, 2014) Human Services - Human Services - County Roads General Fellman Lakeland and Bridges REVENUES Taxes $ 12,272,400 $ 601,036 $ 526,806 $ 2,977,000 Intergovernmental 2,653,566 5,134,111 5,194,489 2,081,879 Licenses and permits 171, Fines and forfeits 324,983-40,355 - Public charges for services 1,237,804 1,093,342 2,166,670 - Intergovernmental charges for services 1,029,198 34,199 29,836 - Miscellaneous 353,227 86,033 19,436 8,899 Total Revenues 18,042,711 6,948,721 7,977,592 5,067,778 EXPENDITURES General Government 4,279, Public safety 9,765, Public works 13, ,401,458 Health and human services 548,155 7,031,878 7,755,093 - Culture and recreation 1,307, Conservation and development 937, Debt Service - - Principal Interest and fiscal charges Total Expenditures 16,851,241 7,031,878 7,755,093 4,401,458 Excess of Revenues Over (Under) Expenditures 1,191,470 (83,157) 222, ,320 OTHER FINANCING SOURCES (USES) Sale of capital assets - - 1,745 - Transfers in 285,810 58, Transfers out (767,228) Total Other Financing Sources (Uses) (481,418) 58,677 1,745 - Net Change in Fund Balances 710,052 (24,480) 224, ,320 FUND BALANCES - Beginning 16,583, , ,552 1,733,021 FUND BALANCES - ENDING $ 17,293,473 $ 87,322 $ 464,796 $ 2,399,341 See accompanying notes to the financial statements. Page 6

13 Debt Service Nonmajor Governmental Funds Total Governmental Funds $ 654,446 $ 743,555 $ 17,775,243 $ 17,559,892 12,715 1,881,607 16,958,367 18,231, , ,026-57, , ,440-53,711 4,551,527 4,457, ,615 80,396 1,455,244 1,547, , , , ,885 3,195,778 42,181,465 43,023, ,113 4,545,725 4,929, ,528 9,940,930 10,707,224-67,098 4,482,122 4,653,676-1,965,120 17,300,246 19,234, ,775 2,080,121 1,842,969-90,896 1,028,056 1,742, , , , , , , ,060 3,337,530 40,313,260 44,116,320 12,825 (141,752) 1,868,205 (1,093,236) - - 1, ,645 1,145,132 1,411,347 - (713,180) (1,480,408) (1,415,570) - 87,465 (333,531) (4,223) 12,825 (54,287) 1,534,674 (1,097,459) 2,892 1,627,134 20,298,822 21,396,281 $ 15,717 $ 1,572,847 $ 21,833,496 $ 20,298,822 See accompanying notes to the financial statements. Page 7

14 RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2015 (With summarized financial information for the year ended December 31, 2014) Net change in fund balances - total governmental funds $ 1,534,674 $ (1,097,459) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is capitalized and they are depreciated over their estimated useful lives with depreciation expense reported in the statement of activities. Capital assets are reported as an expenditure in the fund financial statements but is capitalized in the government-wide financial statements 6,517,985 4,040,188 Depreciation is reported in the government-wide statements - less internal service funds (4,739,001) (3,518,231) Net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins) is to decrease net position. (171,642) (52,527) Receivables not currently available are reported as deferred revenue in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements. (548,899) (304,227) Debt proceeds provide current financial resources to governmental funds, but issuing these obligations increases long-term liabilities in the statement of net position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal payments 815, ,138 Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Compensated absences (49,353) 212,323 Accrued interest on debt 871 7,382 Net pension asset (1,537,017) - Deferred outflows of resources related to pensions 1,552,019 - Internal service funds are used by management to charge the costs of technology services, workers compensation, collision insurance, property insurance, and extended leave costs to individual funds. The change in net position of the internal service funds is reported with governmental activities. (604,794) 238,476 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 2,770,052 $ 388,063 See accompanying notes to the financial statements. Page 8

15 STATEMENT OF NET POSITION PROPRIETARY FUNDS December 31, 2015 (With summarized financial information as of December 31, 2014) Business-type Activities - Enterprise Funds Highway Water and Sewer Utility Nonmajor Lakeland Industries ASSETS Current Assets Cash and investments $ 3,617,413 $ 26,365 $ 188,284 Receivables Taxes 3, Accounts 361,353 4,902 8,497 Loans 5, Due from other governments 1,008, Inventories 847, Prepaid items 6, Total Current Assets 5,851,000 31, ,869 Noncurrent Assets Restricted assets Net pension asset 492, Capital Assets, Nondepreciable Land 506,562 2,190 - Construction in progress 23, Capital Assets, Depreciable Land improvements 532,036 97,575 - Buildings 2,637, ,908 80,198 Intangible Assets Machinery and equipment 16,279,261 26, ,697 Less: Accumulated depreciation (11,542,740) (254,122) (232,994) Net Capital Assets 8,436,147 98, Total Noncurrent Assets 8,928,510 98, Total Assets 14,779, , ,770 DEFERRED OUTFLOWS OF RESOURCES Pension related amounts 494, LIABILITIES Current Liabilities Accounts payable 115, ,719 Accrued liabilities Due to other governments 2, Funds held in trust ,625 Unearned revenues 50, Current maturities of compensated absences 268, Total Current Liabilities 436, ,344 Noncurrent Liabilities Advance from other funds Compensated absences 189, Total Noncurrent Liabilities 189, Total Liabilities 626, ,344 NET POSITION Net investment in capital assets 8,436,147 98, Restricted for pension 492, Unrestricted 5,719,873 30, ,525 TOTAL NET POSITION $ 14,648,383 $ 129,273 $ 170,426 See accompanying notes to the financial statements. Page 9

16 Governmental Activities - Total Enterprise Funds Internal Service Funds $ 3,832,062 $ 4,304,561 $ 2,826,946 $ 3,415,107 3, , ,784 5,835 7,708 5,750 7, ,008, , , , ,315 6, , ,376 6,079,136 6,002,394 3,168,425 3,683, , , , ,281 49,341 87, , , , ,943,853 2,922, ,634,096 3,068,158 16,459,872 15,478,364 4,391 4,391 (12,029,856) (11,528,266) (2,744,836) (2,625,149) 8,535,513 7,862, , ,849 9,027,876 7,862, , ,849 15,107,012 13,865,220 4,149,405 4,476, , , ,450 73,863 72, , ,861 2,054 1, ,625 23, ,375 69, , , , , , , , , , , , , , , , , , ,253 8,535,513 7,862, , , , ,920,206 5,290,249 2,420,013 3,212,938 $ 14,948,082 $ 13,153,075 $ 3,400,993 $ 4,005,787 See accompanying notes to the financial statements. Page 10

17 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION PROPRIETARY FUNDS For the Year Ended December 31, 2015 (With summarized financial information for the Year Ended December 31, 2014) Business-type Activities - Enterprise Funds Highway Water and Sewer Utility Nonmajor Lakeland Industries OPERATING REVENUES Public charges for services $ 5,753,523 $ 53,776 $ 173,133 Interdepartmental charges for services 5,249, Other operating revenues 47, Total Operating Revenues 11,050,926 53, ,133 OPERATING EXPENSES Operation and maintenance 9,720,859 73, ,929 Depreciation 1,003,110 6, Total Operating Expenses 10,723,969 80, ,029 Operating Income (Loss) 326,957 (26,486) 7,104 NONOPERATING REVENUES (EXPENSES) Property taxes Interest income 5, Gain (loss) on disposal of capital assets 36, Total Nonoperating Revenues (Expenses) 41, Income (loss) before Transfers 368,732 (26,486) 7,104 TRANSFERS Transfers in 484, Transfers out (30,000) - - Change in Net Position 823,297 (26,486) 7,104 NET POSITION - Beginning (as restated) 13,825, , ,322 NET POSITION - ENDING $ 14,648,383 $ 129,273 $ 170,426 See accompanying notes to the financial statements. Page 11

18 Total Enterprise Funds Governmental Activities - Internal Service Funds $ 5,980,432 $ 5,291,794 $ 301,234 $ 446,012 5,249,454 5,469, ,248 1,322,218 47,949 79,499 9, ,277,835 10,840,799 1,267,982 1,768,504 9,960,345 9,234,005 1,503,668 1,297,191 1,009, , , ,478 10,970,260 10,231,846 1,755,750 1,523, , ,953 (487,768) 244,835-5, ,374 16,460 2,696 1,779 36,401 78,801 (433) (8,138) 41, ,711 2,263 (6,359) 349, ,664 (485,505) 238, ,565 4, (30,000) - (119,289) - 803, ,887 (604,794) 238,476 14,144,167 12,439,188 4,005,787 3,767,311 $ 14,948,082 $ 13,153,075 $ 3,400,993 $ 4,005,787 See accompanying notes to the financial statements. Page 12

19 STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended December 31, 2015 (With summarized financial information for the Year Ended December 31, 2014) Business-type Activities - Enterprise Funds Nonmajor Highway Water and Sewer Utility Lakeland Industries CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 10,358,473 $ 53,323 $ 181,397 Cash payments to suppliers (4,791,069) (73,549) (170,100) Cash payments to employees and for employee benefits (4,840,730) - - Net Cash Provided by Operating Activities 726,674 (20,226) 11,297 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES General property taxes Transfers in (out) 454, Net Cash Provided (Used) by Noncapital Financing Activities 454, CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (1,650,183) Proceeds from sale of capital assets Net Cash Used by Capital and Related Financing Activities (1,650,183) - - CASH FLOWS FROM INVESTING ACTIVITIES Interest income received 5, Change in Cash and Cash Equivalents (463,570) (20,226) 11,297 CASH AND CASH EQUIVALENTS - Beginning 4,080,983 46, ,987 CASH AND CASH EQUIVALENTS - ENDING $ 3,617,413 $ 26,365 $ 188,284 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ 326,957 $ (26,486) $ 7,104 Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 1,003,110 6, Changes in assets and liabilities Accounts receivable (85,329) (453) 8,264 Due from other governments (587,617) - - Inventories 119, Prepaid items - - (88) Accounts payable (12,338) 8 (5,382) Accounts payable related to capital assets acquired Due to other governments Accrued liabilities (22,753) - - Deferred inflow of resources (19,507) - - Funds held in trust - - 1,299 Pension related deferrals and liabilities 3, Accrued vested employee benefits NET CASH PROVIDED BY OPERATING ACTIVITIES $ 726,674 $ (20,226) $ 11,297 NONCASH INVESTING, CAPITAL AND FINANCING ACTIVITIES Noncash asset retirement $ 57,643 $ - $ - Page 13

20 Governmental Activities - Total Enterprise Funds Internal Service Funds $ 10,593,193 $ 10,692,876 $ 1,269,788 $ 1,770,648 (5,034,718) (5,462,263) (786,919) (912,693) (4,840,730) (4,105,393) (513,791) (471,178) 717,745 1,125,220 (30,922) 386,777-5, ,565 4,223 (119,289) - 454,565 9,673 (119,289) - (1,650,183) (1,026,841) (440,646) (228,023) - 160,753-87,950 (1,650,183) (866,088) (440,646) (140,073) 5,374 16,460 2,696 1,779 (472,499) 285,265 (588,161) 248,483 4,304,561 4,019,296 3,415,107 3,166,624 $ 3,832,062 $ 4,304,561 $ 2,826,946 $ 3,415,107 $ 307,575 $ 608,953 $ (487,768) $ 244,835 1,009, , , ,478 (77,518) (138,506) 1,873 2,144 (587,617) (9,737) ,964 (191,198) - - (88) - (75,268) 7,251 (17,712) (267,274) 1,538 7, , (22,753) - 276,688 (101,473) (19,507) (4,156) (67) (270) 1,299 4, , (54,017) - - $ 717,745 $ 1,125,220 $ (30,922) $ 386,777 $ 57,643 $ - $ - $ - See accompanying notes to the financial statements. Page 14

21 STATEMENT OF ASSETS AND LIABILITIES AGENCY FUND December 31, 2015 (With summarized financial information as of December 31, 2014) ASSETS Cash and cash equivalents $ 1,332,887 $ 1,349,156 LIABILITIES Accounts payable $ 1,332,887 $ 1,349,156 See accompanying notes to the financial statements. Page 15

22 INDEX TO NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2015 NOTE Page I. Summary of Significant Accounting Policies 17 A. Reporting Entity 17 B. Government-Wide and Fund Financial Statements 18 C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation 20 D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity Deposits and Investments Receivables Inventories and Prepaid Items Capital Assets Deferred Outflows of Resources Compensated Absences Long-Term Obligations Deferred Inflows of Resources Equity Classifications Summarized Comparative Information 29 II. Stewardship, Compliance, and Accountability 30 A. Excess Expenditures and Other Financing Uses Over Appropriations 30 B. Deficit Balances 30 C. Limitations on the County s Tax Levy 30 III. Detailed Notes on All Funds 31 A. Deposits and Investments 31 B. Receivables 34 C. Restricted Assets 35 D. Capital Assets 36 E. Interfund Receivables/Payables, Advances and Transfers 38 F. Long-Term Obligations 40 G. Net Position/Fund Balances 42 H. Restatement of Net Position 45 I. Minimum Fund Balance Policy 46 J. Component Unit Shawano County Economic Progress, Inc. 46 IV. Other Information 47 A. Employees Retirement System 47 B. Risk Management 52 C. Commitments and Contingencies 53 D. Other 53 E. Other Postemployment Benefits 53 F. Subsequent Event 55 G. Effect of New Accounting Standards on Current-Period Financial Statements 55 Page 16

23 NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2015 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the Shawano County, Wisconsin ( County ) conform to generally accepted accounting principles as applicable to governmental units. The accepted standard-setting body for establishing governmental accounting and financial reporting principles is the Governmental Accounting Standards Board (GASB). A. REPORTING ENTITY This report includes all of the funds of the Shawano County. The reporting entity for the County consists of the primary government, governed by an elected 27 member board and its component unit. Component units are legally separate organizations for which the primary government is financially accountable or other organizations for which the nature and significance of their relationship with the primary government are such that their exclusion would cause the reporting entity s financial statements to be misleading. The primary government is financially accountable if (1) it appoints a voting majority of the organization s governing body and is able to impose its will on that organization; (2) it appoints a voting majority of the organization s governing body and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government; (3) the organization is fiscally dependent on and there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. Certain legally separate, tax exempt organizations should also be reported as a component unit if all of the following criteria are met: (1) the economic resources received or held by the separate organization are entirely or almost entirely for the direct benefit of the primary government, its component units, or its constituents; (2) the primary government, or its component units, is entitled to, or has the ability to access, a majority of the economic resources received or held by the separate organization; and (3) the economic resources received or held by an individual organization that the primary government, or its component units, is entitled to, or had the ability to otherwise access, are significant to the primary government. Component units are reported using one of two methods, discrete presentation or blending. Generally, component units should be discretely presented in a separate column in the financial statements. A component unit should be reported as part of the primary government using the blending method if it meets any one of the following criteria: (1) the primary government and its component unit have substantively the same governing body and a financial benefit or burden relationship exists; (2) the primary government and the component unit have substantially the same governing body and management of the primary government has operational responsibility for the component unit; (3) the component unit serves or benefits, exclusively or almost exclusively, the primary government rather than its citizens; or (4) the total debt of the component unit will be paid entirely or almost entirely from resources of the primary government. Discretely Presented Component Unit Shawano County Economic Progress, Inc., (SCEPI) The government-wide financial statements include the SCEPI as a component unit. SCEPI is a legally separate organization established to foster economic development in Shawano County. It is funded by contributions from the County, county municipalities, and various businesses. SCEPI is included because the County contributes a substantial amount of funding towards their operations. As a component unit, SCEPI s financial statements have been presented as a discrete column in the financial statements. Separately issued financial statements are not issued. Page 17

24 NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2015 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS Government-Wide Financial Statements In June 2012, the GASB issued Statement No. 68 Accounting and Financial Reporting for Pensions an amendment of GASB Statement No. 27. This statement establishes standards for measuring and recognizing assets, liabilities, deferred outflows of resources, deferred inflows of resources, and expense/expenditures related to pensions. In November 2013, the GASB issued Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date an amendment of GASB Statement No. 68. This statement addresses an issue regarding application of the transition provisions of Statement No. 68. These standards were implemented January 1, 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 except for fiduciary funds. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. The County does not allocate indirect expenses to functions in the statement of activities. Program revenues include 1) charges to customers or applicants who purchase, use or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported as general revenues. Internally dedicated resources are reported as general revenues rather than as program revenues. Fund Financial Statements Financial statements of the County 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, which constitute its assets, deferred outflows of resources, liabilities, deferred inflows of resources, net position/fund balance, revenues, and expenditures/expenses. Separate financial statements are provided for governmental funds and proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Funds are organized as major funds or nonmajor funds within the governmental and proprietary statements. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the County or meets the following criteria: a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the corresponding total for all funds of that category or type, and Page 18

25 NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2015 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) b. The same element of the individual governmental fund or enterprise fund that met the 10% test is at least 5% of the corresponding total for all governmental and enterprise funds combined. c. In addition, any other governmental or enterprise fund that the County believes is particularly important to financial statement users may be reported as a major fund. The County reports the following major governmental funds: General accounts for the County s primary operating activities. It is used to account for and report all financial resources except those accounted for and reported in another fund. Human Services Fellman this fund is used to account for programs operated by the County s Department of Social Services. Significant revenues include federal and state grants and property taxes. Human Services Lakeland this fund is used to account for programs operated by the County s Department of Community Programs. Significant revenues include federal and state grants and property taxes. County Roads and Bridges Fund this fund is used to account for the maintenance and construction of the County s roads and bridges. Significant revenues include state and federal aids and a portion of the local tax levy. Debt Service used to account for and report financial resources that are restricted, committed, or assigned to expenditure for the payment of general long-term debt principal, interest, and related costs, other than enterprise debt. The County reports the following major enterprise funds: Highway Fund the highway fund is used to support the maintenance of County, State and Federal highways on a cost reimbursement basis. Water and Sewer Utility Fund the water and sewer utility fund accounts for utilities provided to the nursing home previously owned by the County. The County reports the following nonmajor governmental and enterprise funds: Special Revenue Funds used to account for and report the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes (other than debt service or capital projects). Public Health City-County Library Jail Assessment Crime Prevention Wisconsin Farmers Wisconsin Development CDBG Housing Loans Environmental Impact Fee Projects Wolf River ADRC Aging Transportation Airport Page 19

26 NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2015 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.) Fund Financial Statements (cont.) The County reports the following nonmajor governmental and enterprise funds: (cont.) Capital Projects Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets. Mielke Theater Expansion Capital Improvement Projects Enterprise Funds the Lakeland Industries fund accounts for client workshop and resale programs of the Community Programs department. In addition, the County reports the following fund types: Internal service funds are used to account for technology systems, self-funded workers compensation, collision and property insurance services provided by one department or agency to other departments or agencies of the County, or to other governmental units, on a cost-reimbursement basis. Agency funds are used to account for the receipt and disbursement of various taxes, deposits and assessments held by the County in a trustee capacity or as an agent for individuals, private organizations, and/or other governmental units. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION Government-Wide Financial Statements The government-wide statement of net position and statement of activities are reported using the economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Property taxes are recognized as revenues in the year for which they are levied. Taxes receivable for the following year are recorded as receivables and deferred inflows. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider are met. Unbilled receivables are recorded as revenues when services are provided. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges for actual services between the County s funds and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Page 20

27 NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2015 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT PRESENTATION (cont.) Fund Financial Statements Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recorded when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the County considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are recorded when the related fund liability is incurred, except for unmatured interest on long-term debt, claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund liability when expected to be paid with expendable available financial resources. Property taxes are recorded in the year levied as receivables and unearned revenues. They are recognized as revenues in the succeeding year when services financed by the levy are being provided. Intergovernmental aids and grants are recognized as revenues in the period the County is entitled to the resources and the amounts are available. Amounts owed to the County which are not available are recorded as receivables and unavailable revenues. Amounts received before eligibility requirements (excluding time requirements) are met and recorded as liabilities. Amounts received in advance of meeting time requirements are recorded as deferred inflows. Revenues susceptible to accrual include property taxes, miscellaneous taxes, public charges for services and interest. Other general revenues such as fines and forfeitures, inspection fees, recreation fees, and miscellaneous revenues are recognized when received in cash or when measurable and available under the criteria described above. Proprietary and fiduciary fund financial statements (other than agency funds) are reported using the economic resources measurement focus and the accrual basis of accounting, as described previously in this note. Agency funds follow the accrual basis of accounting and do not have a measurement focus. The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund s principal ongoing operations. The principal operating revenues of the Highway, Water and Sewer Utility, and Lakeland Industries are charges to customers for sales and services. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. All Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles 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 expenditures/expenses during the reporting period. Actual results could differ from those estimates. Page 21