WASHINGTON COUNTY TAX COLLECTION COMMITTEE

Transcription

1 WASHINGTON COUNTY TAX COLLECTION COMMITTEE KEYSTONE COLLECTIONS GROUP, TAX OFFICER LOCAL SERVICE TAX REPORT WASHINGTON COUNTY, PENNSYLVANIA FINANCIAL REPORT DECEMBER 31, 2012

2 WASHINGTON COUNTY TAX COLLECTION COMMITTEE KEYSTONE COLLECTIONS GROUP, TAX OFFICER LOCAL SERVICE TAX TABLE OF CONTENTS PAGE INDEPENDENT AUDITOR'S REPORT 1-1A FINANCIAL STATEMENT Statement of Cash Receipts, Cash Disbursements and Cash Balances Local Service Tax 2-3 Notes to Financial Statements 4-6

3 210 West Pike Street tel Canonsburg, Pennsylvania fax INDEPENDENT AUDITOR S REPORT Committee Members Washington County Tax Collection Committee Washington County, Pennsylvania Report on the Financial Statements We have audited the accompanying statement of cash receipts, cash disbursements, and cash balances - local service tax, as of and for the year ended December 31, 2012, and the related notes to the financial statement, which comprises Washington County Tax Collection Committee s ( TCC ) Tax Officer, Keystone Collections Group, basic financial statement, as listed in the table of contents. Management s Responsibility for the Financial Statement Washington County TCC s Tax Officer, Keystone Collections Group s management is responsible for the preparation and fair presentation of the financial statement in accordance with the TCC s accounting policies consistently applied and in conformity with the cash basis of accounting. This includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of the financial statement that is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on this financial statement 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 above referenced financial statement is free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statement, 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 statement 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 statement. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

4 Opinion In our opinion, the statement of cash receipts, cash disbursements, and cash balances local service tax referred to above presents fairly, in all material respects, the cash receipts and cash disbursements of Washington County Tax Collection Committee's ( TCC ) Tax Officer, Keystone Collections Group, for the year ended December 31, 2012, and its cash balance as of December 31, 2012, on the cash basis of accounting described in Note 1. Basis of Accounting We draw your attention to Note 1 of the financial statements, which describes the basis of accounting. The financial statements are prepared on the 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. CYPHER & CYPHER Canonsburg, Pennsylvania July 30, 2013 CERTIFIED PUBLIC ACCOUNTANTS 1A

5 WASHINGTON COUNTY TAX COLLECTION COMMITTEE TAX OFFICER - KEYSTONE COLLECTION GROUP STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS AND CASH BALANCES LOCAL SERVICE TAX YEAR ENDED DECEMBER 31, 2012 COLLECTIONS AND RECEIPTS Collections - School Tax $ 188,194 Collections - Municipal Tax 1,661,642 TOTAL COLLECTIONS AND RECEIPTS 1,849,836 DISTRIBUTIONS AND DISBURSEMENTS LST Distributions to TCD Members Bentworth School District 5,077 Bethlehem-Center School District 3,797 California Area School District 11,305 Canon-McMillan School District 37,813 Charleroi School District 9,209 Chartiers-Houston School District 678 Peters Township School District 24,495 Ringgold School District 24,661 Trinity Area School District 28,304 Washington School District 32,408 Bentleyville Borough 4,087 Borough of Donora 46,074 Borough of Finleyville 1,903 Borough of New Eagle 7,399 Buffalo Township 14,920 Burgettstown Borough 9,702 California Borough 106,236 Canonsburg Borough 85,271 Canton Township 46,008 Carroll Township 56,609 Cecil Township 270,711 Centerville Borough 12,461 Charleroi Borough 54,455 Cokeburg Borough 1,661 Cross Creek Township 6,647 Deemston Borough 6,078 Donegal Township 9,797 Dunlevy Borough 2,505 East Bethlehem Township 852 Ellsworth Borough 1,074 Fallowfield Township 18,356 Hopewell Township 3,171 SEE NOTES TO THE FINANCIAL STATEMENTS. 2

6 WASHINGTON COUNTY TAX COLLECTION COMMITTEE TAX OFFICER - KEYSTONE COLLECTION GROUP STATEMENT OF CASH RECEIPTS, CASH DISBURSEMENTS AND CASH BALANCES LOCAL SERVICE TAX YEAR ENDED DECEMBER 31, 2012 Houston Borough 6,377 Marianna Borough 33 McDonald Borough 51 Monongahela City 5,192 Morris Township 3,091 Mount Pleasant Township 22,658 North Bethlehem Township 6,891 North Charleroi Borough 1,000 North Franklin Township 39,636 Peters Township 231,203 South Strabane Township 181,035 Township of Nottingham (152) Township of Union 53,748 Washington City 263,421 West Brownsville Borough 112 Total LST Distributions to TCD Members 1,758,020 Taxpayer Refunds 125 Tax Officer Commissions 31,231 Tax Collector Committee Management Fee 5,517 Other Disbursements: Unpaid LST Invoices and/or Disbursement Adjustments 1,986 Postage and/or Other Costs 121 TOTAL DISTRIBUTIONS AND DISBURSEMENTS 1,797,000 COLLECTIONS AND RECEIPTS OVER/(UNDER) DISTRIBUTIONS AND DISBURSEMENTS 52,836 Cash Balance - January 1, 2012 Cash Balance - December 31, 2012 $ 52,836 SEE NOTES TO THE FINANCIAL STATEMENTS. 3

7 WASHINGTON COUNTY TAX COLLECTION COMMITTEE TAX OFFICER KEYSTONE COLLECTIONS GROUP LOCAL SERVICE TAX NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2012 Note 1 Nature of Activities and Summary of Significant Accounting Policies Nature of Activities: Washington County TCC is the Tax Collection Committee representing all taxing jurisdictions within Washington County, Pennsylvania, as defined by Pennsylvania Act 32 of The Committee is comprised of representatives from each taxing jurisdiction. All action of the Committee is approved by the representatives using a weighted voting system based on each taxing jurisdiction s percentage of earned income tax revenue and population. The Committee is responsible for overseeing the collection and distribution of earned income, net profit taxes and local service tax within the Tax Collection District. Members of the Tax Collection District are comprised of all school districts and municipalities within the geographic boundaries of the TCD. Non-members are entities not included within the geographic boundaries of the TCD. Washington County TCC has contracted with Keystone Collections Group to collect and distribute the earned income, net profit taxes and local service tax within the Washington County Tax Collection District. Summary of Significant Accounting Policies: Washington County TCC s Tax Officer, Keystone Collections Group, maintains financial records related to the local service tax transactions on the cash basis of accounting which recognizes collections and other receipts when received and disbursements when paid. The accompanying financial statement is prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Therefore the statement is not intended to present the financial position or results of operations of Washington County TCC s Tax Officer, Keystone Collections Group, in conformity with accounting principles generally accepted in the United States of America. Subsequent Events: In preparing this financial statement, the Washington County TCC s Tax Officer, Keystone Collections Group has evaluated events and transactions for potential recognition and disclosure through July 30, 2013, the date the financial statement was available to be issued. Note 2 Cash Balance and Concentration of Credit Risk The Tax Officer maintains an interest bearing escrow account that is insured to the maximum by the U.S. Federal Deposit Insurance Corporation ( FDIC ). Amounts over the FDIC insured limit are collateralized dollar for dollar by the bank as required by the Commonwealth of Pennsylvania Act 72 of 1971 to protect public funds. 4

8 Deposits of governmental entities in excess of Federal Depository Insurance limits are required to be secured by pledged collateral either on a pooled or separate basis. These may be bonds of the United States, any State or Commonwealth of the United States, or bonds of any political subdivision of Pennsylvania, or the general state authority or other authorities created by the General Assembly of the Commonwealth of Pennsylvania. The Federal Reserve Bank does not consider tax officers such as Keystone Collections Group to be governmental entities. It considers them to be collection agencies. The accounts are held in trust for the TCC political subdivisions under State law, and therefore constitute public funds. These uninsured deposits of $52,836 are collateralized under Act 72 of 1971, with securities held by the pledging financial institution, or its trust department or agent, in the name of the TCC's designated tax officer. The cash balance consists of collections held, in escrow, pending receipt of monthly, quarterly or annual reports indentifying amounts due to the appropriate member of Washington County TCC or other Tax Collection Committees. The cash balance at December 31, 2012, for members of the Washington County TCC, totaled $52,836. The following are the entities for which money was held at December 31, 2012, and the amount held for each of those entities. Members of Washington County TCD Amount Bentworth School District $ 147 Bethlehem-Center School District 281 California School District 96 Canon-McMillan School District 1,462 Charleroi School District 531 Chartiers-Houston School District 7 Peters Township School District 501 Ringgold School District 952 Trinity Area School District 1,066 Washington School District 537 Bentleyville Borough 77 Buffalo Township 2,210 Burgettstown Borough 229 California Borough 807 Canonsburg Borough 5,209 Canton Township 895 Carroll Township 2,267 Cecil Township 7,991 Centerville Borough 470 Charleroi Borough 4,407 Cokeburg Borough 6 Cross Creek Township 151 Donegal Township 1,117 Donora Borough 522 East Bethlehem Township 51 Ellsworth Borough 30 Fallowfield Township 121 Finleyville Borough 129 Hopewell Township 54 Houston Borough 58 Monongahela City 148 Morris Township 131 Mount Pleasant Township 420 New Eagle Borough 429 5

9 North Bethlehem Township 306 North Charleroi Borough 12 North Franklin Township 1,062 Nottingham Township 11 Peters Township 3,751 South Strabane Township 7,702 Union Township 2,021 Washington City 4,450 West Brownsville Borough 12 $ 52,836 Note 3 Source of Local Service Tax Collections The local service tax is imposed by the municipalities and school districts in varying amounts up to a statewide maximum of $52 per year for all taxpayers working in the tax collection district whose gross wages exceed $12,000 annually. Collections are shared among the applicable taxing jurisdictions within the TCC. The following taxing jurisdictions belong to the Washington County TCC and are serviced by Keystone Collections Group: Municipalities School Districts Townships Boroughs Cities Bentworth Buffalo Morris Bentleyville Dunlevy Monongahela Bethlehem-Center Canton Mount Pleasant Burgettstown Ellsworth Washington California Area Carroll North Bethlehem California Finleyville Canon-McMillan Cecil North Franklin Canonsburg Houston Charleroi Cross Creek Peters Centerville Marianna Chartiers-Houston Donegal South Strabane Charleroi McDonald Peters Township East Bethlehem Nottingham Cokeburg New Eagle Ringgold Fallowfield Union Deemston North Charleroi Trinity Area Hopewell Donora West Brownsville Washington Note 4 Tax Collection Contract Washington County TCC has contracted with Keystone Collections Group for the collection and distribution of local service tax. The contract term begins January 1, 2012 and continues through December 31, 2014 and is renewable for various additional periods at terms contained within the agreement. The contract calls for a collection fee of 1.69% and a management fee of.3% for all tax collections. The 1.69% collection fee is to be retained by the Washington County Tax Collector upon collection with the.3% of management fee being distributed to the TCC and net proceeds being distributed to the members of Washington County TCD. 6