COUNTY OF CASS, MICHIGAN COMPREHENSIVE ANNUAL FINANCIAL REPORT Year Ended September 30, 2016
Comprehensive Annual Financial Report Year Ended September 30, 2016 Prepared by: Angie M. Steinman Finance Director/ Deputy County Administrator
Comprehensive Annual Financial Report Year Ended September 30, 2016 TABLE OF CONTENTS INTRODUCTORY SECTION Letter of Transmittal GFOA Certificate of Achievement List of County Officials Organizational Chart PAGE i-iii iv v vi FINANCIAL SECTION INDEPENDENT AUDITOR S REPORT MANAGEMENT S DISCUSSION AND ANALYSIS vii-ix x-xix BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position 1 Statement of Activities 2 Fund Financial Statements Governmental Funds Balance Sheet 3 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 4 Statement of Revenues, Expenditures, and Changes in Fund Balances 5 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 6 Proprietary Funds Statement of Net Position 7 Statement of Revenues, Expenses, and Changes in Net Position 8 Statement of Cash Flows 9-10 Fiduciary Funds Statement of Fiduciary Assets and Liabilities 11 Component Units Combining Statement of Net Position 12-13 Combining Statement of Activities 14 Notes to Financial Statements 15-41 REQUIRED SUPPLEMENTARY INFORMATION GENERAL FUND Budgetary Comparison Schedule - Revenues and Other Financing Sources (Non-GAAP Budgetary Basis) 42-43 Budgetary Comparison Schedule - Expenditures and Other Financing Uses (Non-GAAP Budgetary Basis) 44-45 CENTRAL DISPATCH Budgetary Comparison Schedule 46
Comprehensive Annual Financial Report Year Ended September 30, 2016 TABLE OF CONTENTS - CONTINUED FINANCIAL SECTION - CONTINUED PAGE REQUIRED SUPPLEMENTARY INFORMATION - CONCLUDED Schedule of Changes in Employer s Net Pension Liability and Related Ratios 47 Schedule of Employer Contributions 48 Notes to Required Supplementary Information 49-50 OTHER SUPPLEMENTARY INFORMATION Nonmajor Governmental Funds Combining Balance Sheet 51-56 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 57-62 Nonmajor Special Revenue Funds Schedule of Revenues, Expenditures, and Changes in Fund Balances by Fund - Budget and Actual 63-77 Internal Service Funds Combining Statement of Net Position 78-79 Combining Statement of Revenues, Expenses, and Changes in Net Position 80-81 Combining Statement of Cash Flows 82-83 Agency Funds Combining Statement of Fiduciary Assets and Liabilities 84-85 Statement of Changes in Assets and Liabilities 86-87 COMPONENT UNIT FUNDS DRAIN COMMISSION Governmental Funds Balance Sheet and Statement of Net Position 88-89 Reconciliation of the Combining Balance Sheet to the Statement of Net Position 90 Statement of Revenues, Expenditures, and Changes in Fund Balances and Statement of Activities 91-92 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 93 BOARD OF PUBLIC WORKS Combining Balance Sheet and Statement of Net Position 94-97 Reconciliation of the Combining Balance Sheet to the Statement of Net Position 98 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances and Statement of Activities 99-102 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 103 ECONOMIC DEVELOPMENT CORPORATION Balance Sheet 104 Statement of Revenues, Expenditures, and Changes in Fund Balance 105
Comprehensive Annual Financial Report Year Ended September 30, 2016 TABLE OF CONTENTS - CONCLUDED FINANCIAL SECTION - CONCLUDED PAGE COMPONENT UNIT FUNDS - CONCLUDED LAND BANK AUTHORITY Statement of Net Position 106 Statement of Revenues, Expenses, and Changes in Position 107 Statement of Cash Flows 108 STATISTICAL SECTION (UNAUDITED) MULTI-YEAR AND OTHER FINANCIAL AND DEMOGRAPHIC INFORMATION Statistical Section 109 Net Position by Component 110 Changes in Net Position 111-112 Fund Balances - Governmental Funds 113 Changes in Fund Balances - Governmental Funds 114 Assessed Value and Estimated Actual Value of Taxable Property 115 Property Tax Rates - Direct and Overlapping Governments 116 Principal Taxpayers 117 Property Taxes Levied and Collected 118 Ratios of Outstanding Debt by Type 119 Ratios of General Bonded Debt Outstanding 120 Computation of Direct and Overlapping Bonded Debt 121 Computation of Legal Debt Margin 122 Demographic and Economic Statistics 123 Principal Employers 124 Full-time Equivalent County Government Employees by Function/Program 125 Operating Indicators by Function/Program 126 Capital Asset Statistics by Function/Program 127-128
INTRODUCTORY SECTION
March 8, 2017 To the Honorable Chairperson, Members of the Board of Commissioners, and Citizens of the County of Cass, Michigan: State law requires that every general-purpose local government publish within six months of the close of each fiscal year a complete set of audited financial statements. This report is published to fulfill that requirement for the fiscal year ended September 30, 2016. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Abraham & Gaffney, PC has issued an unmodified ( clean ) opinion on the County of Cass s financial statements for the year ended September 30, 2016. The independent auditor s report is located at the front of the Financial Section of this report. Management discussion and analysis (MD&A) immediately follows the independent auditor s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Government The County of Cass, Michigan, incorporated in 1829, is located in the southwestern part of the State. It occupies 492 square miles and serves an estimated population of 52,000. The County of Cass is empowered to levy a property tax on both real and personal property located within its boundaries. An elected Board of Commissioners governs the County of Cass. Policy-making and legislative authority are vested in the Board consisting of 7 members, all elected on a partisan basis. The Board appoints the County Administrator/Controller. Board members serve two-year terms with all members elected every two years. The Chairperson serves for a one-year term. All Board members are elected by district. 120 N. Broadway Suite 116 Cassopolis, MI 49031 Telephone (269) 445-4420 Fax (269) 445-8978 - i -
Transmittal Letter March 8, 2017 Page 2 The County provides a diverse range of services, including law enforcement, justice administration, human services, public and mental health services, document administration, maintenance of roads, parks and drains, residential nursing home and other services. The Board is required to adopt a budget no later than the beginning of the fiscal year. This annual budget serves as the foundation of Cass County s financial planning and control. The government maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the Board of Commissioners. The level of budgetary control (i.e., the level at which expenditures cannot legally exceed the appropriated amount) is the activity level within the general fund and functional level in the special revenue and debt service funds. Reporting Entity The County financial statements present the government and its component units, entities for which the county is financially accountable. Those entities include: The Cass County Building Authority, Cass County Water Resource Commissioner, Cass County Board of Public Works, Cass County Economic Development Corporation, Cass County Land Bank Authority, Cass County Road Commission, Cass County Medical Care Facility, and Woodlands Behavioral Healthcare Network. Local Economy When considering Cass County from an economic point of view it must always be understood that we border major population and industrial centers where the majority of our population work; just outside the County borders. The County has a varied tax base consisting of primarily agriculture, residential, and lake residential second homes; that when mixed with a smaller commercial and industrial base offers a stable economic environment. As a result, the recent economic downturn did not impact the County to the extent as seen in other areas. Conversely, with the economy improving we will not see the large improvements that can be expected in those other areas. The County has had some notable successes in the area of economic development. The Pokagon Band of Potawatomi Indians has opened a regional casino located near the City of Dowagiac. Also, a new 30,000 square foot community health center was completed within the Village of Cassopolis. Southwestern Michigan College, located in Dowagiac, continues to expand and offer educational opportunities for our residents providing an educated and trained workforce. These, joined with the raising value and diversity of the County s agricultural products and land values, continue to brighten the economic landscape. - ii -
Transmittal Letter March 8, 2017 Page 3 Long-term financial planning Unrestricted fund balance in the general fund is partially designated by policy, adopted by the Board of Commissioners, for cash flow purposes to offset the timing of cash receipts and cash expenditures throughout the year caused by the shift in tax collection. This reserve of cash, along with the management and policies of the County s delinquent tax revolving funds, has allowed the County to maintain an excellent bond rating throughout this time of economic instability. This has precipitated the refunding of several bond issues, including direct and indirect debt, of the County providing for decreased future debt requirements. Standard & Poor s Ratings Services affirmed its AA long-term rating and underlying rating (SPUR) on Cass County as of October 20, 2015. With the State of Michigan struggling with its finances, Cass County is presently taking a cautious approach and monitoring the situation closely. No significant large projects are planned at this time, although limited improvements are under way in the historic courthouse to stabilize the building pending updated planning for the building s future. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to Cass County for its comprehensive annual financial report (CAFR) for the fiscal year ended September 30, 2015. This was the eighteenth consecutive year that the government has received this award. In order to be awarded a Certificate of Achievement, the government has to publish an easily readable and efficiently organized CAFR that satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year. We believe that our current CAFR continues to meet the Certificate of Achievement Program s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the dedicated service of the staff of the Administrator/Controller s office and the Treasurer s office. We wish to express our appreciation to those who assisted and contributed to the preparation of this report. Credit must also be given to the Board of Commissioners for their support for maintaining the highest standards of professionalism in the management of the County of Cass. Respectfully submitted, Angie M. Steinman Finance Director/Deputy County Administrator Karen L. Folks County Administrator - iii -
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Comprehensive Annual Financial Report Year Ended September 30, 2016 LIST OF COUNTY OFFICIALS BOARD OF COMMISSIONERS Bernie Williamson Chairperson Robert Ziliak Vice-Chairperson Annie File Board Member E. Clark Cobb Board Member Robert Wagel Board Member Skip Dyes Board Member Roseann Marchetti Board Member TRIAL COURT JUDGES Michael E. Dodge Stacey A. Rentfrow Susan L. Dobrich OTHER ELECTED OFFICIALS Monica Kennedy Bruce Campbell Linda Pruett Victor Fitz Joseph M. Underwood County Clerk/ Register Drain Commissioner County Treasurer Prosecuting Attorney County Sheriff - v -
CASS COUNTY, MICHIGAN ORGANIZATION CHART - vi -
FINANCIAL SECTION
Principals --- -- Dale J. Abraham, CPA Steven R. Kirinovic, CPA Aaron M. Stevens, CPA Eric J. Glashouwer, CPA Alan D. Panter, CPA William I. Tucker IV, CPA ABRAHAM & GAFFNEY, P.C. Certified Public Accountants 3511 Coolidge Road Suite 100 East Lansing, MI 48823 (517) 351-6836 FAX: (517) 351-6837 INDEPENDENT AUDITOR S REPORT Board of Commissioners County of Cass, Michigan Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Cass, Michigan (the County), as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the 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. Auditor s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Cass County Road Commission, which represents 51%, 82%, and 28%, respectively of the total assets, net position, and revenues of the discretely presented component units, the Woodlands Behavioral Healthcare Network, which represents 4%, 2%, and 40%, respectively of the total assets, net position, and revenues of the discretely presented component units and the Medical Care Facility which represents 8%, 13%, and 28%, respectively of the total assets, net position, and revenues of the discretely presented component units. Those financial statements were audited by other auditors whose reports have been furnished to us, and our opinions, insofar as they relate to the amounts included for the Road Commission, Woodlands Behavioral Healthcare Network, and Medical Care Facility, are based solely on the reports of the other auditors. 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 judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the 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, well as evaluating the overall presentation of the financial statements. Auburn Hills East Lansing Grand Rapids St. Johns - vii -
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Cass, Michigan, as of September 30, 2016, 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. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management s discussion and analysis, budgetary comparison information, schedule of changes in the net pension liability and related ratios, and schedule of employer contributions, as identified 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 and opinion or provide any assurance. Change in Accounting Principles As discussed in Note N to the financial statements, during the year the County implemented GASB Statement No. 72, Fair Value Measurement and Application. This statement provides guidance for determining a fair value measurement for financial reporting purposes. This statement also provides guidance for applying fair value to certain investments and disclosures related to fair value measurement. Our opinions are not modified with respect to this matter. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the County of Cass, Michigan s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements, budgetary comparison schedules, and statistical section listed in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements of the County of Cass, Michigan. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such 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 by us and other auditors. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we don t not express and opinion or provide any assurance on them. - viii -
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 8, 2017, on our consideration of the County of Cass, Michigan 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 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 County of Cass, Michigan s internal control over financial reporting and compliance. ABRAHAM & GAFFNEY, P.C. Certified Public Accountants March 8, 2017 - ix -
MANAGEMENT S DISCUSSION AND ANALYSIS As management of Cass County we offer readers of the County s financial statements this narrative overview and analysis of the financial activities of the County for the fiscal year ended September 30, 2016. FINANCIAL HIGHLIGHTS The assets of Cass County exceeded its liabilities at the close of the most recent fiscal year by $29,081,337 (net position). Of this amount, $15,979,875 (unrestricted net position) may be used to meet the County s ongoing obligations to citizens and creditors. Governmental activities contain $5,666,817 of the unrestricted net position. The Delinquent Tax Revolving Fund contains most of the business-type unrestricted net position. At September 30, 2016, Cass County s governmental funds reported combined ending fund balances of $15,145,979. Of this total $5,533,455 or 36% is unassigned and is available for spending at the County s discretion. $4,482,727 or 30% has been assigned by the governing body to be used for specific purposes; and the remaining $5,129,797 or 34% has been determined to be committed, restricted, or non-spendable. At the end of the fiscal year, unassigned fund balance for the General Fund was $5,533,455 or 35% of total General Fund expenditures. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to Cass County s basic financial statements. The basic financial statements contain three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the County s finances, in a manner similar to a private-sector business. The Statement of Net Position presents information on all of the County s assets and liabilities. The difference between assets and liabilities is reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the County is improving or deteriorating. The Statement of Activities presents information showing how the County s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). - x -
Both of the government-wide financial statements distinguish functions of Cass County that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the County include general government, public safety, judicial, public works, health, welfare, education, economic development, and culture and recreation. The business-type activities of Cass County include the Delinquent Tax Revolving Fund and Jail Commissary Fund. The government-wide financial statements include, not only the County itself (known as the primary government), but also the following legally separate entities: Road Commission, Drain Commission, Community Mental Health Authority, Land Bank, Medical Care Facility and an Economic Development Corporation for which Cass County is financially accountable. Financial information for these component units is reported separately from the financial information presented for the primary government itself. The Cass County Building Authority, although also legally separate, functions for all practical purposes as a department of Cass County, and therefore has been included as an integral part of the primary government. The government-wide financial statements can be found on pages 1-2 of this report. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Cass County, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with financerelated legal requirements. All of the funds of Cass County can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government s near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the governmental-wide financial statements. By doing so, readers may better understand the long-term impact of the government s near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. Cass County maintains numerous individual governmental funds. Information is presented separately in the governmental funds Balance Sheet and in the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances. Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. Cass County adopts an annual appropriated budget for its General Fund and Special Revenue Funds. A budgetary comparison statement has been provided for the major governmental funds to demonstrate compliance with this budget. - xi -
The basic governmental fund financial statements can be found on pages 3-6 of this report. Proprietary Funds. Cass County maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Cass County uses enterprise funds to account for its business-type activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among Cass County s various functions. Cass County uses internal service funds to account for its equipment. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Medical Care Facility and the Delinquent Tax Revolving Fund, which are considered to be major funds of Cass County. Detailed financial information for each of the non-major enterprise funds is provided in the form of combining statements elsewhere in this report. Conversely, all internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 7-10 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support Cass County s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The County is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The basic fiduciary fund financial statements can be found on page 11 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 15-41 of this report. Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning Cass County s progress in funding its obligation to provide pension benefits to its employees. The combining statements referred to earlier in connection with non-major governmental funds, nonmajor enterprise funds, and internal service funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 51-87 of this report. - xii -
County-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government s financial position. The following schedule is a summary presentation of Cass County s assets, liabilities, and net position at September 30, 2016. The schedule shows the County s assets exceeded liabilities by $29,081,337. Cass County's Net Position Governmental Activities Business-type Activities Total 2016 2015 2016 2015 2016 2015 Assets Current and other assets $ 17,470,410 $ 17,643,919 $ 10,397,972 $ 9,553,258 $ 27,868,382 $ 27,197,177 Capital assets, net 11,240,860 11,342,930 - - 11,240,860 11,342,930 Total assets 28,711,270 28,986,849 10,397,972 9,553,258 39,109,242 38,540,107 Deferred Outflows 3,621,772 773,852 - - 3,621,772 773,852 Liabilities Long-term liabilities 12,293,087 8,995,541 - - 12,293,087 8,995,541 Other liabilities 1,271,676 1,777,330 84,914 36,916 1,356,590 1,814,246 Total liabilities 13,564,763 10,772,871 84,914 36,916 13,649,677 10,809,787 Net position Net investment in capital assets 8,297,917 8,118,501 - - 8,297,917 8,118,501 Restricted 4,803,545 4,527,313-293,442 4,803,545 4,820,755 Unrestricted 5,666,817 6,342,016 10,313,058 9,222,900 15,979,875 15,564,916 Net position $ 18,768,279 $ 18,987,830 $ 10,313,058 $ 9,516,342 $ 29,081,337 $ 28,504,172 Cass County has a net investment of $8,297,917 in capital assets. This represents 29% of total net position. Our investment in capital assets (e.g., land, buildings, machinery, and equipment) is shown less any related debt used to acquire those assets that is still outstanding. Cass County uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although Cass County s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Significant increases to Cass County capital assets in 2016 included the purchase of financial software, court imaging project, and several public safety vehicles. An additional portion of Cass County s net position, $4,803,545 or 17% represents resources that are subject to external restrictions on how they may be used. Cass County s unrestricted net position, $15,979,875 may be used to meet the County s ongoing obligations to citizens and creditors. At the end of the 2016 fiscal year, Cass County is able to report positive balances in all three net position categories (net investment in capital assets, restricted and unrestricted). - xiii -
The following table shows the changes in net position in a comparative format for the years ending September 30, 2016 and September 30, 2015 respectively. Cass County's Changes in Net Position Governmental Activities Business-type Activities Total 2016 2015 2016 2015 2016 2015 Revenues Program revenues Charges for services $ 3,325,416 $ 3,319,626 $ 1,339,639 $ 839,243 $ 4,665,055 $ 4,158,869 Operating grants and contributions 3,458,641 3,673,973 - - 3,458,641 3,673,973 General revenues Property taxes 12,771,729 12,295,349 - - 12,771,729 12,295,349 Intergovernmental 1,041,228 1,039,403 - - 1,041,228 1,039,403 Unrestricted investment earnings 20,012 19,022 394,935 319,183 414,947 338,205 Other 78,275 11,210 - - 78,275 11,210 Total revenues 20,695,301 20,358,583 1,734,574 1,158,426 22,429,875 21,517,009 Expenses General government 9,945,980 9,750,549 - - 9,945,980 9,750,549 Public safety 7,521,746 6,689,794 - - 7,521,746 6,689,794 Public works 1,316 2,571 - - 1,316 2,571 Health and welfare 3,456,430 3,541,072 - - 3,456,430 3,541,072 Recreation and cultural 132,894 131,181 - - 132,894 131,181 Interest on long-term debt 494,238 384,013 - - 494,238 384,013 Delinquent tax collections/forfeitures - - 166,706 180,999 166,706 180,999 Jail Commissary - - 133,400 109,899 133,400 109,899 Total expenses 21,552,604 20,499,180 300,106 290,898 21,852,710 20,790,078 Change in net position before transfers (857,303) (140,597) 1,434,468 867,528 577,165 726,931 Transfers 637,752 803,348 (637,752) (803,348) -0- -0- Change in net position (219,551) 662,751 796,716 64,180 577,165 726,931 Restated net position, beginning of year 18,987,830 18,325,079 9,516,342 9,452,162 28,504,172 27,777,241 Net position, end of year $ 18,768,279 $ 18,987,830 $ 10,313,058 $ 9,516,342 $ 29,081,337 $ 28,504,172 Governmental Activities. Governmental activities decreased net position by $219,551. State revenue sharing contributed $1,041,228 compared to $1,039,403 in the prior year. Expenses increased overall by 5%. The most significant increase was in public safety. Business-Type Activities. Business-type activities increased Cass County s net position by $796,716. Before transfers, business-type activities increased net position by $1,434,468. Including its unrestricted investment earnings, the Delinquent Tax Revolving Fund contributed $1,372,914 to net position before transfers. Annual transfers out of the Delinquent Tax Revolving Fund are made to subsidize the debt retirement and operating costs of the Law and Courts Building. - xiv -
Program Revenues and Expenses - Governmental Activities $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- Program Revenue Expense Revenues by Source - Governmental Activities Other 5% Charges for services 16% Operating grants and contributions 17% Property taxes 62% - xv -
Financial Analysis of the Government s Funds As noted earlier, Cass County uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds. The focus of Cass County s governmental funds is to provide information on near-term inflows, and balances of spendable resources. Such information is useful in assessing Cass County s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government s net resources available for spending at the end of the fiscal year. As of the end of the fiscal year, Cass County s governmental funds reported combined ending fund balances of $15,145,979, an increase of $643,028 in comparison with the prior year. $5,533,455 of this is unassigned fund balance, which is available for spending at the government s discretion. An additional $4,482,727 is assigned by the governing body to be used for specific purposes. The remainder of fund balance is invested in capital assets, capital projects, and special revenue grants, and is not available for new spending. The General Fund is the chief operating fund of Cass County. At the end of the fiscal year, the unassigned fund balance of the General Fund was $5,533,455 while total fund balance amounted to $10,331,503. As a measure of the General Fund s liquidity it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures and other financing uses. Unassigned fund balance represents 35% of total General Fund expenditures, while total fund balance represents 65% of that same amount. The fund balance of Cass County s General Fund increased during the fiscal year. While general County operations also remained stable, a few key factors contributed to this: State revenue sharing increased $1,825 over the prior year, as the County is now completely transitioned back into the State revenue sharing pool. Taxes increased $447,125 over the prior year, as property values are increasing. The Central Dispatch Fund is the County s special revenue fund that is used to provide and receive emergency calls which is financed primarily by user charges and taxes. As of September 30, 2016, the Central Dispatch Fund reported a fund balance of $2,130,907, an increase of $192,134 from the prior year. Of the total fund balance, $4,718 is considered nonspendable. The remaining $2,126,189 is considered restricted for specific purpose. Proprietary Funds. Cass County s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. At the end of the fiscal year, the Delinquent Tax Revolving Fund had unrestricted net position of $10,218,787. $7,500,000 of that balance has been designated by Board policy; $4,500,000 set aside to fund the annual purchase of delinquent property taxes, and $3,000,000 set aside for maintenance of the County s credit rating. - xvi -
General Fund Budgetary Highlights: Differences between the original budget and the final amended budget were as follows: Intergovernmental revenue (other) - $226,612 positive adjustment to reflect additional grant funding received after the original budget was established. The County received $100,388-District Court Adult Drug Grant, $70,000-Byrne Jag Grant, $42,000-MDCGP Grant and $14,224-Medical Marihuana Operations Grant. District court expenses - $212,388 increase in budgeted expenditures primarily due to an increase in the Adult Drug Court Grant of $100,388, the MDCGP grant of $42,000 and the Byrne Jag Grant of $70,000. Treasurer s Department & Information Systems - The Property Description Supervisor/Address Technician position was transferred from the Information System Department to the Treasurer s Department resulting in a transfer of wage and benefit responsibility of approximately $60,000 between the two departments. Jail Operations - Cass County experienced an increase of approximately $80,000 in inmate medical care over the prior fiscal year, a budget increase was needed due to the increase in costs. Transfers Out - Various Capital Improvement projects approved throughout the fiscal year resulted in an additional transfer from the General Fund to the Public Improvement fund of approximately $50,000. Differences between the final amended budget and actual results are briefly summarized as follows: Revenues: Real and personal property taxes - $142,236 adjustment due to the fact that the budget was adjusted before the final deferral of property tax for collections received greater than 60 days after the close of the fiscal year. Expenditures: Insurance/Others Costs - This fiscal year contained 27 pay periods rather than 26 pay periods, which happens every 8-10 years. This extra pay period resulted in an expense credit adjustment to the accrued wages as of September 30, 2016 in the amount of nearly $240,000. This adjustment significantly reduced the departments reported expenses. Information Systems, Maintenance, and the Sheriff s Department experienced the greatest difference between actual results and amended budgets. These differences are realized once the accumulation of final spending is compiled between 30-60 days after year end. There were no other significant variations that contributed to these or other department final results. - xvii -
Capital Assets and Debt Administration Capital Assets. Cass County s investment in capital assets for its governmental and business-type activities as of September 30, 2016 amounts to $11,240,860 (net of accumulated depreciation). This investment in capital assets includes land, construction in progress, buildings, and equipment. Cass County s Capital Assets (Net of depreciation) Governmental Activities Land Buildings Equipment $ 719,906 9,038,264 1,482,690 $ 11,240,860 Additional information on Cass County s capital assets can be found in Note D on pages 24-26 of this report. Long-Term Debt. At the end of the 2016 fiscal year, Cass County had net outstanding debt of $3,377,932. Cass County s Outstanding Debt Gross Debt Outstanding Paid by Benefited Entity Net Amount Outstanding Building Authority Bonds Public Works - Water & Sewer Debt Compensated Absences $ 3,001,749 29,709,763 376,183 $ - 29,709,763 - $ 3,001,749-376,183 $ 33,087,695 $ 29,709,763 $ 3,377,932 State statutes limit the amount of general obligation debt a governmental entity may issue to 10 percent of its total assessed valuation (i.e., State Equalized Value). The current legal debt limit for Cass County is $270,539,571, which is significantly in excess of the County s outstanding debt applicable to limitation, $33,087,695. Additional information on Cass County s long-term debt can be found in Note E on pages 27-31 of this report. - xviii -
Economic Factors and Next Year s Budgets The following factors were considered in preparing the County s 2016 budget: The County will rely on state revenue sharing to support its General Fund expenditures for the first time in many years. State revenue sharing amounts in subsequent budget years will be determined by the state s funding ability. Inflation will continue to be low. Departments and Courts will continue to manage their spending within budget and will diligently need to collect revenue due them through fines, fees, services, and grants. The State of Michigan will continue to have structural budgetary problems that will affect how County government is funded. It is anticipated that their financial direction will become clearer as we progress throughout the year. Property tax revenue is expected to remain steady with a slight increase. Personal property tax revenue is expected to show a slight decrease. Funding of major capital improvement projects will continue to escalate. Requests for Information This financial report is designed to provide a general overview of Cass County s finances for all those with an interest in the government s finances. Questions concerning any information provided in this report or requests for additional financial information should be addressed to: Office of the County Administrator / Controller Cass County Building 120 N. Broadway, Suite 116 Cassopolis, Michigan 49031 - xix -
BASIC FINANCIAL STATEMENTS
STATEMENT OF NET POSITION September 30, 2016 Primary Government Governmental Business-type Component Activities Activities Total Units ASSETS Current assets Cash and cash equivalents $ 12,432,963 $ 7,382,730 $ 19,815,693 $ 5,489,064 Investments 266,951-266,951 2,420,063 Receivables, net 3,807,380 2,843,818 6,651,198 2,738,989 Due from other governmental units 601,442 171,424 772,866 - Inventories - - -0-613,054 Prepaids 78,365-78,365 792,428 Current portion of leases receivable - - -0-1,944,469 Total current assets 17,187,101 10,397,972 27,585,073 13,998,067 Noncurrent assets Restricted cash and cash equivalents 283,309-283,309 - Leases receivable, net of current portion - - -0-27,750,824 Capital assets not being depreciated 719,906-719,906 10,833,137 Capital assets being depreciated, net 10,520,954-10,520,954 29,851,357 Total noncurrent assets 11,524,169-0- 11,524,169 68,435,318 TOTAL ASSETS 28,711,270 10,397,972 39,109,242 82,433,385 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding 58,806-58,806 200,711 Deferred outflows of resources related to pensions 3,562,966-3,562,966 707,055 TOTAL DEFERRED OUTFLOWS OF RESOURCES 3,621,772-0- 3,621,772 907,766 LIABILITIES Current liabilities Accounts payable and accrued expenses 492,182 24,625 516,807 2,702,650 Due to other governmental units 36,714 60,289 97,003 449,533 Unearned revenue 12,091-12,091 18,164 Accrued interest payable 54,875-54,875 - Current portion of compensated absences 376,183-376,183 216,391 Current portion of long-term debt 299,631-299,631 2,364,999 Total current liabilities 1,271,676 84,914 1,356,590 5,751,737 Noncurrent liabilities Other post-employment benefits, net - - -0-404,377 Noncurrent portion of compensated absences - - -0-78,063 Noncurrent portion of long-term debt 2,702,118-2,702,118 33,043,414 Net pension liability 9,590,969-9,590,969 610,300 Total noncurrent liabilities 12,293,087-0- 12,293,087 34,136,154 TOTAL LIABILITIES 13,564,763 84,914 13,649,677 39,887,891 DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions - - - 35,249 NET POSITION Net investment in capital assets 8,297,917-8,297,917 35,029,378 Restricted for: Legal restrictions 237,643-237,643 - Drug enforcement team 1,004,046-1,004,046 - Central dispatch 2,130,907-2,130,907 - Self-insurance reserves 283,309-283,309 - Other purposes 1,147,640-1,147,640 308,169 Unrestricted 5,666,817 10,313,058 15,979,875 8,080,464 TOTAL NET POSITION $ 18,768,279 $ 10,313,058 $ 29,081,337 $ 43,418,011 See accompanying notes to financial statements. - 1 -
STATEMENT OF ACTIVITIES Year Ended September 30, 2016 Net (Expense) Revenue and Changes in Net Position Program Revenues Primary Government Charges for Operating Grants Capital Grants Governmental Business-type Component Functions/Programs Expenses Services and Contributions and Contributions Activities Activities Total Units Primary government Governmental activities General government $ 9,945,980 $ 1,929,696 $ 2,462,210 $ - $ (5,554,074) $ - $ (5,554,074) $ - Public safety 7,521,746 1,084,896 653,729 - (5,783,121) - (5,783,121) - Public works 1,316 - - - (1,316) - (1,316) - Health and welfare 3,456,430 223,922 340,202 - (2,892,306) - (2,892,306) - Recreation and cultural 132,894 86,902 2,500 - (43,492) - (43,492) - Interest on long-term debt 494,238 - - - (494,238) - (494,238) - Total governmental activities 21,552,604 3,325,416 3,458,641-0- (14,768,547) -0- (14,768,547) -0- Business-type activities Delinquent tax collections/forfeitures 166,706 1,144,721 - - - 978,015 978,015 - Jail Commissary 133,400 194,918 - - - 61,518 61,518 - Total business-type activities 300,106 1,339,639-0- -0- -0-1,039,533 1,039,533-0- Total primary government $ 21,852,710 $ 4,665,055 $ 3,458,641 $ -0- (14,768,547) 1,039,533 (13,729,014) -0- Component units Drain Commission $ 228,614 $ - $ - $ 63,241 - - -0- (165,373) Board of Public Works 1,098,659 - - 918,483 - - -0- (180,176) Economic Development 23,040-36,000 - - - -0-12,960 Land Bank 20 - - - - - -0- (20) Road Commission 8,067,821 2,117,567 5,724,806 596,204 - - -0-370,756 Woodlands 12,243,866 336,022 11,670,284 - - - -0- (237,560) Medical Care Facility 8,431,731 8,397,005 - - - - -0- (34,726) Total component units $ 30,093,751 $ 10,850,594 $ 17,431,090 $ 1,577,928-0- -0- -0- (234,139) General revenues Property taxes 12,771,729-12,771,729 - State revenue sharing 1,041,228-1,041,228 - Unrestricted investment earnings 20,012 394,935 414,947 47,752 County appropriations - - -0-195,000 Other 78,275-78,275 65,530 Transfers - internal activities 637,752 (637,752) -0- - Total general revenues and transfers 14,548,996 (242,817) 14,306,179 308,282 Change in net position (219,551) 796,716 577,165 74,143 Net position, beginning of the year 18,987,830 9,516,342 28,504,172 43,343,868 Net position, end of the year $ 18,768,279 $ 10,313,058 $ 29,081,337 $ 43,418,011 See accompanying notes to financial statements. - 2 -
Governmental Funds BALANCE SHEET September 30, 2016 Nonmajor Central Governmental General Dispatch Funds Total ASSETS Cash and cash equivalents $ 6,971,539 $ 1,942,542 $ 2,677,569 $ 11,591,650 Investments 192,930-74,021 266,951 Taxes receivable - current 3,093,355 - - 3,093,355 Accounts receivable 476,120 192,169 10,118 678,407 Due from other governmental units 421,455-102,073 523,528 Due from other funds 464,228 - - 464,228 Prepaids 64,393 4,718 9,254 78,365 TOTAL ASSETS $ 11,684,020 $ 2,139,429 $ 2,873,035 $ 16,696,484 LIABILITIES Accounts payable $ 250,696 $ 8,522 $ 125,238 $ 384,456 Accrued wages 107,342 - - 107,342 Due to other governmental units 20,456 - - 20,456 Due to other funds - - 64,228 64,228 Unearned revenue 12,091 - - 12,091 TOTAL LIABILITIES 390,585 8,522 189,466 588,573 DEFERRED INFLOWS OF RESOURCES Unavailable revenue 961,932 - - 961,932 FUND BALANCES Nonspendable 64,393 4,718 9,254 78,365 Restricted 237,643 2,126,189 2,151,527 4,515,359 Committed 536,073 - - 536,073 Assigned 3,959,939-522,788 4,482,727 Unassigned 5,533,455 - - 5,533,455 TOTAL FUND BALANCES 10,331,503 2,130,907 2,683,569 15,145,979 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES $ 11,684,020 $ 2,139,429 $ 2,873,035 $ 16,696,484 See accompanying notes to financial statements. - 3 -
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION September 30, 2016 Fund balances - total governmental funds $ 15,145,979 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources, and therefore not reported in the funds. The cost of capital assets is $ 26,313,890 Accumulated depreciation is (15,073,030) Internal Service Funds are used by management to charge the cost of certain activities to individual funds. The assets and liabilities of the Internal Service Funds are included in the Government-wide Statement of Net Position. Net position of governmental activities accounted for in internal service funds 1,043,857 Less: Net capital assets of governmental activities included in total capital assets above (222,345) Because the focus of governmental funds is on short-term financing, some assets will not be available to pay for current-period expenditures. Those assets (such as certain receivables) are offset by deferred inflows of resources in the governmental funds, and thus are not included in fund balance. 11,240,860 821,512 Unavailable property taxes 961,932 Governmental funds report actual pension expenditures for the fiscal year, whereas the governmental activities will recognize the net pension liability as of the measurement date. Pension contributions subsequent to the measurement date will be deferred in the statement of net position. In addition, resources related to changes of assumptions, differences between expected and actual experience, and differences between projected and actual pension plan investment earnings will be deferred over time in the governmentwide financial statements. These amounts consist of: Deferred outflows of resources related to pensions 3,562,966 Certain liabilities are not due and payable in the current period, and therefore are not reported in the funds. Direct county obligations (3,001,749) Unamortized deferred amounts on debt issuance 58,806 Accrued interest payable (54,875) Compensated absences (376,183) Net pension liability (9,590,969) (12,964,970) Net position of governmental activities $ 18,768,279 See accompanying notes to financial statements. - 4 -
Governmental Funds STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended September 30, 2016 Nonmajor Central Governmental General Dispatch Funds Total REVENUES Taxes $ 9,738,721 $ 402,281 $ 2,762,303 $ 12,903,305 Intergovernmental 3,633,414 198,451 710,947 4,542,812 Licenses and permits 123,778-32,460 156,238 Fines and forfeits 70,623-22,836 93,459 Charges for services 1,679,787 664,249 211,618 2,555,654 Interest and rents 107,452-785 108,237 Contributions - - 23,623 23,623 Other revenue/reimbursements 296,348 935 135,262 432,545 TOTAL REVENUES 15,650,123 1,265,916 3,899,834 20,815,873 EXPENDITURES Current General government 8,416,552-216,503 8,633,055 Public safety 5,314,534 922,706 1,201,279 7,438,519 Public works 1,216 - - 1,216 Health and welfare 964,802-2,397,677 3,362,479 Recreation and cultural - - 166,035 166,035 Other 1,104 - - 1,104 Debt service Principal - 59,661 319,362 379,023 Interest - 12,977 102,238 115,215 Capital outlay - - 713,451 713,451 TOTAL EXPENDITURES 14,698,208 995,344 5,116,545 20,810,097 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 951,915 270,572 (1,216,711) 5,776 OTHER FINANCING SOURCES (USES) Transfers in 559,517-1,382,186 1,941,703 Transfers out (1,089,948) (78,438) (136,065) (1,304,451) TOTAL OTHER FINANCING SOURCES (USES) (530,431) (78,438) 1,246,121 637,252 NET CHANGE IN FUND BALANCES 421,484 192,134 29,410 643,028 Fund balances, beginning of year 9,910,019 1,938,773 2,654,159 14,502,951 Fund balances, end of year $ 10,331,503 $ 2,130,907 $ 2,683,569 $ 15,145,979 See accompanying notes to financial statements. - 5 -
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended September 30, 2016 Net change in fund balances - total governmental funds $ 643,028 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 activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay $ 775,402 Depreciation expense (862,289) Loss on disposal of capital assets (15,183) Excess of depreciation expense and loss on disposal over capital outlay (102,070) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds, but rather are deferred to the following fiscal year. Change in unavailable revenue (120,570) Internal service funds are used by management to charge the costs of certain activities to individual funds. Change in net position from governmental activities accounted for in internal service funds (262,856) Additions: decrease in capital assets included above (11,307) Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities. Principal payments on long-term liabilities 285,000 Net effect of bond refunding and related items (3,514) Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Change in accrued interest on bonds 6,000 Decrease in the accrual of compensated absences 87,850 (Increase) in net pension liability (3,597,177) Increase in deferred outflows of resources related to pensions 2,856,065 (274,163) 281,486 (647,262) Change in net position of governmental activities $ (219,551) See accompanying notes to financial statements. - 6 -
Proprietary Funds STATEMENT OF NET POSITION September 30, 2016 ASSETS Current assets Cash and cash equivalents 7,299,979 Governmental Business-type Activities Activities Nonmajor Delinquent Jail Internal Tax Commissary Service Revolving Fund Total Funds $ $ 82,751 $ 7,382,730 $ 841,313 Taxes receivable - delinquent 2,782,267-2,782,267 - Accounts receivable 38,083 23,468 61,551 35,618 Due from other governmental units 171,424-171,424 77,914 Total current assets 10,291,753 106,219 10,397,972 954,845 Noncurrent assets Restricted cash and cash equivalents - - -0-283,309 Capital assets being depreciated, net - - -0-222,345 Total noncurrent assets -0- -0- -0-505,654 TOTAL ASSETS 10,291,753 106,219 10,397,972 1,460,499 LIABILITIES Current liabilities Accounts payable 12,677 11,948 24,625 384 Due to other governmental units 60,289-60,289 16,258 Due to other funds - - -0-400,000 TOTAL LIABILITIES 72,966 11,948 84,914 416,642 NET POSITION Investment in capital assets - - - 222,345 Restricted Self-insurance reserves - - - 283,309 Unrestricted 10,218,787 94,271 10,313,058 538,203 TOTAL NET POSITION $ 10,218,787 $ 94,271 $ 10,313,058 $ 1,043,857 See accompanying notes to financial statements. - 7 -
Proprietary Funds STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Year Ended September 30, 2016 Governmental Activities Business-type Activities Nonmajor Delinquent Jail Internal Tax Commissary Service Revolving Fund Total Funds OPERATING REVENUES Charges for services $ 1,044,721 $ 194,918 $ 1,239,639 $ 3,587,676 OPERATING EXPENSES Cost of services 159,639 133,400 293,039 3,736,713 Public works projects 1,269-1,269 - Other expenses 1,700-1,700 - Depreciation - - -0-123,680 TOTAL OPERATING EXPENSES 162,608 133,400 296,008 3,860,393 OPERATING INCOME (LOSS) 882,113 61,518 943,631 (272,717) NONOPERATING REVENUES (EXPENSES) Gain on disposal of capital assets - - -0-500 Intergovernmental revenue 100,000-100,000 - Interest and rents 394,899 36 394,935 8,861 Interest expense (4,098) - (4,098) - TOTAL NONOPERATING REVENUES (EXPENSES) 490,801 36 490,837 9,361 INCOME (LOSS) BEFORE TRANSFERS 1,372,914 61,554 1,434,468 (263,356) TRANSFERS Transfers in - - -0-500 Transfers out (597,752) (40,000) (637,752) - TOTAL TRANSFERS (597,752) (40,000) (637,752) 500 CHANGE IN NET POSITION 775,162 21,554 796,716 (262,856) Net position, beginning of year 9,443,625 72,717 9,516,342 1,306,713 Net position, end of year $ 10,218,787 $ 94,271 $ 10,313,058 $ 1,043,857 See accompanying notes to financial statements. - 8 -
Proprietary Funds STATEMENT OF CASH FLOWS Year Ended September 30, 2016 Governmental Business-type Activities Activities Nonmajor Delinquent Jail Internal Tax Commissary Service Revolving Fund Total Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 1,045,219 $ 183,871 $ 1,229,090 $ 3,488,816 Cash payments to suppliers for goods and services (117,022) (130,988) (248,010) (3,760,745) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 928,197 52,883 981,080 (271,929) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers in (out) (597,752) (40,000) (637,752) 500 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets - - -0- (134,987) Proceeds from sale of capital assets - - -0-500 Intergovernmental 100,000-100,000 - Interest payments (4,098) - (4,098) - NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES 95,902-0- 95,902 (134,487) CASH FLOWS FROM INVESTING ACTIVITIES Interest and rent received 394,899 36 394,935 8,861 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 821,246 12,919 834,165 (397,055) Cash and cash equivalents, beginning of year 6,478,733 69,832 6,548,565 1,521,677 Cash and cash equivalents, end of year $ 7,299,979 $ 82,751 $ 7,382,730 $ 1,124,622 See accompanying notes to financial statements. - 9 -
Proprietary Funds STATEMENT OF CASH FLOWS - CONCLUDED Year Ended September 30, 2016 Tax Commissary Service Revolving Fund Total Funds CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ 882,113 $ 61,518 $ 943,631 $ (272,717) Adjustments to reconcile operating income (loss) to net cash provided by operating activities Depreciation - - -0-123,680 (Increase) decrease in: Taxes receivable 4,235-4,235 - Accounts receivable (26,535) (11,047) (37,582) (29,804) Due from other governmental units 22,798-22,798 (69,056) Prepaids - - -0-105,121 Increase (decrease) in: Accounts payable 12,677 2,412 15,089 (139,018) Due to other governmental units 32,909-32,909 9,865 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 928,197 $ 52,883 $ 981,080 $ (271,929) See accompanying notes to financial statements. - 10 -
Fiduciary Funds STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES September 30, 2016 Agency Funds ASSETS Cash and cash equivalents $ 5,579,179 LIABILITIES Undistributed taxes $ 4,866,050 Other undistributed receipts 713,129 TOTAL LIABILITIES $ 5,579,179 See accompanying notes to financial statements. - 11 -
Component Units COMBINING STATEMENT OF NET POSITION September 30, 2016 Economic Land Drain Board of Development Bank Commission Public Works Corporation Authority ASSETS Current assets Cash and cash equivalents $ 142,933 $ 37,400 $ 15,460 $ 82,793 Investments - - - - Receivables, net - - - - Inventories - - - 6,454 Prepaid items and other assets - - - - Current portion of leases receivable - 1,944,469 - - Total current assets 142,933 1,981,869 15,460 89,247 Noncurrent assets Leases receivable, net of current portion - 27,750,824 - - Capital assets not being depreciated - - - - Capital assets being depreciated, net 987,001 - - - Total noncurrent assets 987,001 27,750,824-0- -0- TOTAL ASSETS 1,129,934 29,732,693 15,460 89,247 DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding - 157,176 - - Deferred outflows of resources related to pension - - - - TOTAL DEFERRED OUTFLOWS OF RESOURCES -0-157,176-0- -0- LIABILITIES Current liabilities Accounts payable and accrued expenses 14,871 - - - Due to other governmental units - - - - Unearned revenue - - - - Current portion of compensated absences - - - - Current portion of long-term debt - 1,958,938 - - Total current liabilities 14,871 1,958,938-0- -0- Noncurrent liabilities Net pension liability - - - - Other post-employment benefits, net - - - - Noncurrent portion of compensated absences - - - - Noncurrent portion of long-term debt - 27,750,824 - - Total noncurrent liabilities -0-27,750,824-0- -0- TOTAL LIABILITIES 14,871 29,709,762-0- -0- DEFERRED INFLOWS OF RESOURCES Deferred inflows of resources related to pensions - - - - NET POSITION Net investment in capital assets 987,001 - - - Restricted for capital projects 128,062 180,107 - - Unrestricted - - 15,460 89,247 TOTAL NET POSITION $ 1,115,063 $ 180,107 $ 15,460 $ 89,247-12 -
Woodlands Behavioral Medical Road Healthcare Care Commission Network Facility Total $ 1,732,006 $ 1,203,274 $ 2,275,198 $ 5,489,064-187,687 2,232,376 2,420,063 889,765 1,094,514 754,710 2,738,989 606,600 - - 613,054 485,789 113,275 193,364 792,428 - - - 1,944,469 3,714,160 2,598,750 5,455,648 13,998,067 - - - 27,750,824 10,833,137 - - 10,833,137 27,663,040 362,634 838,682 29,851,357 38,496,177 362,634 838,682 68,435,318 42,210,337 2,961,384 6,294,330 82,433,385 43,535 - - 200,711 - - 707,055 707,055 43,535-0- 707,055 907,766 380,662 1,873,983 433,134 2,702,650-121,689 327,844 449,533-18,164-18,164 26,021 190,370-216,391 406,061 - - 2,364,999 812,744 2,204,206 760,978 5,751,737 - - 610,300 610,300 404,377 - - 404,377 78,063 - - 78,063 5,292,590 - - 33,043,414 5,775,030-0- 610,300 34,136,154 6,587,774 2,204,206 1,371,278 39,887,891 - - 35,249 35,249 32,841,061 362,634 838,682 35,029,378 - - - 308,169 2,825,037 394,544 4,756,176 8,080,464 $ 35,666,098 $ 757,178 $ 5,594,858 $ 43,418,011-13 -
Component Units COMBINING STATEMENT OF ACTIVITIES Year Ended September 30, 2016 Program Revenues Net (Expense) Revenues and Changes in Net Position Operating Capital Economic Land Woodlands Medical Charges for Grants and Grants and Drain Board of Development Bank Road Behavioral Care Functions/Programs Expenses Services Contributions Contributions Commission Public Works Corporation Authority Commission Healthcare Facility Total Component units Drain Commission $ 228,614 $ - $ - $ 63,241 $ (165,373) $ - $ - $ - $ - $ - $ - $ (165,373) Board of Public Works 1,098,659 - - 918,483 - (180,176) - - - - - (180,176) Economic Development 23,040-36,000 - - - 12,960 - - - - 12,960 Land Bank 20 - - - - - - (20) - - - (20) Road Commission 8,067,821 2,117,567 5,724,806 596,204 - - - - 370,756 - - 370,756 Woodlands 12,243,866 336,022 11,670,284 - - - - - - (237,560) - (237,560) Medical Care Facility 8,431,731 8,397,005 - - - - - - - - (34,726) (34,726) TOTALS $ 30,093,751 $ 10,850,594 $ 17,431,090 $ 1,577,928 (165,373) (180,176) 12,960 (20) 370,756 (237,560) (34,726) (234,139) General revenues Investment earnings 109 44,847 10 918-1,868-47,752 County appropriations - - - - - 195,000-195,000 Other/Miscellaneous - 810-756 12,606-51,358 65,530 Total general revenues 109 45,657 10 1,674 12,606 196,868 51,358 308,282 CHANGE IN NET POSITION (165,264) (134,519) 12,970 1,654 383,362 (40,692) 16,632 74,143 Net position, beginning of year 1,280,327 314,626 2,490 87,593 35,282,736 797,870 5,578,226 43,343,868 Net position, end of year $ 1,115,063 $ 180,107 $ 15,460 $ 89,247 $ 35,666,098 $ 757,178 $ 5,594,858 $ 43,418,011 See accompanying notes to financial statements. - 14 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The County of Cass, Michigan (the County) was organized in 1829 and covers an area of 492 square miles in southwest Lower Michigan. The County operates under a seven-member elected Board of Commissioners and an appointed County Administrator/Controller. The financial statements of the County have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) as applied to County governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The County s more significant accounting policies are described below. 1. Reporting Entity As required by accounting principles generally accepted in the United States of America; these financial statements present the financial activities of Cass County (primary government) and its component units, entities for which the government is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the government s operations and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the financial statements to emphasize that they are legally separate from the primary government. 2. Blended Component Unit The Cass County Building Authority is governed by a five (5) member Board appointed by the County Board of Commissioners. The County Clerk and County Treasurer serve as Secretary and Treasurer to the Authority. Although it is legally separate from the County, the Building Authority is reported as if it were part of the primary government because its sole purpose is to finance and construct some of the County s public buildings. The financial statements of the Cass County Building Authority funds have been consolidated with the County s related Debt Service Funds and Capital Projects Funds. 3. Discretely Presented Component Units These component units are reported in a separate column to emphasize that, while legally separate, Cass County remains financially accountable for these entities or the nature and significance of the relationship between these entities and the County is such that exclusion of these entities would render the financial statements misleading or incomplete. Drain Commission - All drainage districts established pursuant to the Michigan Drain Code of 1956 are separate legal entities with the power to contract, to sue and be sued, and to hold, manage and dispose of real and personal property. The statutory governing Board of Chapter 5 and 6 drainage districts consists of the Michigan Director of Agriculture and the Drain or Water Resources Commissioner of each County involved in the drainage districts. The Water Resources Commissioner has sole responsibility to administer Chapter 3 and 4 drainage districts. The Water Resources Commissioner, on behalf of the drainage district, may issue debt and levy special assessments without the prior approval of the County. The full faith and credit of the County may be given for the debt of the drainage district. The Water Resources Commissioner is required by law to make an annual report to the Board of Commissioners in October. The Water Resources Commissioner is financially accountable to the County, and management has determined that it would be misleading to exclude the Drain Commission from the County s financial statements. Accordingly, the Drain Commission is disclosed as a discretely presented component unit. The Drain Commission has a September 30 year end. - 15 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 3. Discretely Presented Component Units - Continued Board of Public Works - Pursuant to Michigan Complied Law 123.732, the County has entered into a program of water supply and sanitary sewer facility construction. The Board of Public Works is under the general control of the County Board of Commissioners and under the immediate control of a Board of Public Works, which includes the County Water Resources Commissioner. The Board of Public Works is administered by a seven (7) member board comprised of six (6) appointed members and the Water Resources Commissioner, which is an elected position. The Board manages water supply and sanitary sewer system construction projects that are bonded by the County. All general obligation bond issuances require County authorization and are backed by the full faith and credit of the County. The Board of Public Works has a September 30 year end. Land Bank Authority - The Cass County Land Bank Authority, organized pursuant to State statues, was created to carry out the powers, duties, and functions, and responsibilities of an authority under the Land Bank Act including, but not limited to, the power, privilege, and authority to acquire, manage, and dispose of interests in property, and doing all other things necessary or convenient to implement the purposes, objectives, and provisions of the Land Bank Act. The Cass County Land Bank Authority board is comprised of: the County Treasurer, two members of the County Board of Commissioners, appointed by the Board Chairman, and one member appointed by the Board Chairman from the Cass County Brownfield Authority. The Land Bank Authority has a September 30 year end. Economic Development Corporation - The Cass County Economic Development Corporation (EDC), organized pursuant to State statutes, was created to provide means and methods for the encouragement and assistance of industrial and commercial enterprises in relocating, purchasing, constructing, improving, or expanding within the County so as to provide needed services and facilities to the residents of the County. The governing body of the EDC is appointed by the County, the budget of the EDC is approved by the County, and the EDC is financially accountable to the County and is disclosed as a component unit, accordingly. The EDC has a September 30 year end. Road Commission - The Cass County Road Commission, established pursuant to the County road law (MCL 224.1), and is governed by a five (5) member Board of County Road Commissioners appointed by the County Board of Commissioners. Limited receipts are deposited with the County Treasurer, who invests certain of those deposits. The Road Commission may not issue debt or levy a tax without approval of the County Board of Commissioners. If approval is granted, such taxes would be levied under the taxing authority of the County and included as part of the County s total tax levy. The Road Commission has a September 30 year end. Woodlands Behavioral Healthcare Network - The Woodlands Behavioral Healthcare Network (Woodlands), established under Section 205 of the Michigan Health Code, was created to serve the mental health. The County appoints a majority of Woodlands governing body and the County can impose its will on Woodlands and as such, is disclosed as a component unit. Woodlands has a September 30 year end. Cass County Medical Care Facility - The Cass County Medical Care Facility is governed by the Cass County Department of Human Services Board. This board consists of three (3) members, two (2) of whom are appointed by the County Board of Commissioners and one appointed by the Michigan governor. The County Department of Human Services Board approves the Facility s budget and submits a copy to the County Board of Commissioners. - 16 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 3. Discretely Presented Component Units - Concluded Complete financial statements for the Cass County Road Commission, Woodlands Behavioral Healthcare Network (including Woodlands other post-employment benefits trust fund), and the Cass County Medical Care Facility may be obtained at the entity s administrative office. Cass County Road Commission Woodlands Behavioral Healthcare Network 340 North O Keefe 690 M-60 East Cassopolis, Michigan 49031 Cassopolis, Michigan 49031 Cass County Medical Care Facility 23770 Hospital St. Cassopolis, Michigan 49031 The Drain Commission, Board of Public Works, Economic Development Corporation, and Land Bank Authority do not issue separate financial statements. 4. Joint Ventures The County participates in the following activity, which is considered to be a joint venture in relation to the County because the organization was formed by a contractual agreement between two (2) or more participants that maintain joint control, financial interest, and fiscal responsibility. Cass County Transportation Authority, organized pursuant to State statutes, is responsible for coordinating client transportation for human service agencies in the County. Complete financial statements for the Transportation Authority may be obtained at the Cass County Transit Operations/Maintenance Facility. Cass County Transportation Authority c/o Transportation Coordinator 400 East State Street Cassopolis, Michigan 49031 (269) 445-2455 5. Government-wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government is reported separately from certain 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. 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 properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, 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. - 17 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 6. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Agency funds, a type of fiduciary fund, are unlike all other types of funds, reporting only assets and liabilities. Therefore, agency funds cannot be said to have a measurement focus. They do, however, use the accrual basis of accounting to recognize receivables and payables. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period or within one year for expenditure-driven grants. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, State revenue, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. The County reports the following major governmental funds: The General Fund is the government s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Central Dispatch Fund is the government s special revenue fund used to provide and receive emergency calls which is financed primarily by user charges and taxes. The County reports the following major proprietary fund: The Delinquent Tax Revolving Fund accounts for money advanced to other local taxing units and various County funds for their delinquent taxes. Additionally, the County reports the following fund types: Special revenue funds account for revenue sources that are legally restricted to expenditure for specific purposes (not including major capital projects). Debt service funds account for the servicing of general long-term debt not being financed by other funds. Capital projects funds account for the acquisition of capital assets or construction of major capital projects not being financed by proprietary funds. - 18 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 6. Measurement Focus, Basis of Accounting, and Financial Statement Presentation - Concluded Enterprise funds account for those operations that are financed and operated in a manner similar to private business or where the County has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Internal service funds account for operations that provide services (such as equipment rentals and selfinsurance) to other departments or agencies of the government, on a cost-reimbursement basis. Agency funds are custodial in nature and do not present results of operations or have a measurement focus. Agency funds are accounted for using the accrual basis of accounting. These funds are used to account for assets that the government holds for others in an agency capacity (such as taxes collected for other governments). As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments in lieu of taxes 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. 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 enterprise funds and of the County s internal service fund are charges to customers for sales and services. Operating expenses for enterprise funds and internal service 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. If/when both restricted and unrestricted resources are available for use, it is the County s policy to use restricted resources first, then unrestricted resources as they are needed. Restricted net position is assets that are subject to restrictions beyond the government s control. The restrictions may be externally imposed or imposed by law. 7. Assets and Liabilities Deposits and Investments The County s cash and cash equivalents include amounts in demand deposit accounts, certificates of deposit, and short-term investments with original maturities of three (3) months or less from the date of acquisition. Investments consist of certificates of deposit with original maturities of three (3) months or more and bond mutual funds stated at fair value held by a discretely presented component unit. State statutes authorize the County to deposit in the accounts of federally insured banks, credit unions, and savings and loan associations and to invest in obligations of the United States, certain commercial papers, repurchase agreements, banker acceptances, and mutual funds composed of otherwise legal investments. Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either due to/from other funds (i.e., the current portion of interfund loans) or advances to/from other funds (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as due to/from other funds. Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances. All trade and property tax receivables are shown net of an allowance for uncollectables, as applicable. - 19 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED 7. Assets and Liabilities - Continued Inventories and Prepaids Inventories are valued at cost using the first in/first out method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid via the purchases method in both government-wide and fund financial statements. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items acquired or constructed since 1980), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the County as assets with an initial, individual cost of more than $20,000 and an estimated useful life in excess of two (2) years. Such assets are recorded in at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities, if any, is included as part of the capitalized value of the assets constructed. No such interest expense was incurred during the current fiscal year. Capital assets of the primary government are depreciated using the straight-line method over the following estimated useful lives: Buildings Equipment, including vehicles Infrastructure (constructed since 1980) 40 years 10 years 35 years Unearned Revenue Unearned revenue in the General Fund relates to survey and remonumentation fees received in advance. Woodlands Behavioral Healthcare Network s unearned revenue represents that portion of the current year MDCH contract amount that may be carried over to and expended in subsequent fiscal years. Such carryover is generally limited to five percent of the MDCH contract amount, and must generally be spent in the following year. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position/balance sheet will, when applicable, report a separate section for deferred outflows of resources and deferred inflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position/fund balance that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. The County currently reports deferred amounts on bond refundings as well as deferred outflows of resources related to pensions that are reported in the government-wide financial statement of net position. Deferred outflows of resources related to pensions result from differences between projected and actual pension plan investment earnings, differences between expected and actual experience, changes in assumptions, differences between projected and actual earnings on investments, and contributions made subsequent to the measurement date. These amounts are deferred and recognized as an outflow of resources in the period to which they apply. - 20 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONCLUDED 7. Assets and Liabilities - Concluded Deferred Outflows/Inflows of Resources - Concluded In addition to liabilities, the statement of net position and balance sheet will report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position/fund balance that applies to a future period and will not be recognized as an inflow of resources (revenue) until then. Currently, the County only reports one deferred inflow of resources for unavailable revenue related to property tax receivables not collected within the sixty (60) day availability period. Compensated Absences Eligible employees are permitted to accumulate earned but not used vacation and sick pay benefits in varying amounts based on length of service and certain other established criteria. Sick and vacation pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for these amounts is reported in government funds only if they have matured, for example, as a result of employees resignations and retirements. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, longterm debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. NOTE B: DEPOSITS AND INVESTMENTS The County maintains pooled and individual fund demand deposits, certificates of deposit, and short-term investment accounts for the primary government and discretely presented component units. Certain imprest demand deposit accounts are also maintained by discretely presented component units. Following is a reconciliation of deposit and investment balances as of September 30, 2016: Primary Component Government Units Total Cash on hand $ 3,240 $ 2,000 $ 5,240 Carrying amount of deposits 25,941,892 7,124,487 33,066,379 Carrying amount of mutual funds - 782,640 782,640 Total $ 25,945,132 $ 7,909,127 $ 33,854,259-21 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE B: DEPOSITS AND INVESTMENTS - CONTINUED Primary Component Government Units Total Statement of Net Position Cash and cash equivalents $ 19,815,693 $ 5,489,064 $ 25,304,757 Investments 266,951 2,420,063 2,687,014 Restricted cash 283,309-283,309 Statement of Net Position - Fiduciary Funds Cash and cash equivalents 5,579,179-5,579,179 Total $ 25,945,132 $ 7,909,127 $ 33,854,259 Restricted cash consists of the County s deposits with MMRMA. See Note G for additional information. Interest Rate Risk State law limits the allowable investments and the maturities of some of the allowable investments as identified in the summary of significant accounting policies. The County s investment policy does not have specific limits in excess of State law on investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Credit Risk State law limits investments to specific government securities, certificates of deposit, and bank accounts with qualified financial institutions, commercial paper with specific maximum maturities and ratings when purchased, bankers acceptances of specific financial institutions, qualified mutual funds and qualified external investment pools as identified in the list of authorized investments in the summary of significant accounting policies. The County s investment policy does not have specific limits in excess of State law on investment credit risk. Credit risk ratings, where applicable, have been identified above for the County s investments. Custodial Credit Risk - Deposits Custodial credit risk is the risk that in the event of a bank failure, the County s deposits may not be returned. State law does not require and the County does not have a policy for deposit custodial credit risk. As of the year end, $27,968,593 of the County s bank balance of $29,597,610 was exposed to custodial credit risk because it was uninsured and uncollateralized. The County s investment policy does not specifically address this risk, although the County believes that due to the dollar amounts of cash deposits and the limits of FDIC insurance, it is impractical to insure all bank deposits. As a result, the County evaluates each financial institution with which it deposits County funds and assess the level of risk of each institution; only those institutions with an acceptable estimated risk level are used as depositories. Custodial Credit Risk - Investments For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the County will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. State law does not require and the County does not have a policy for investment custodial credit risk. - 22 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE B: DEPOSITS AND INVESTMENTS - CONCLUDED Concentration of Credit Risk State law limits allowable investments but does not limit concentration of credit risk as identified in the list of authorized investments in the summary of significant accounting policies. The County s investment policy limits investments in a single financial institution (with exception of U.S. Treasury securities and authorized pools) to 40% of the total investment portfolio. All investments held at year end are reported above. Fair Value Measurements Woodlands Behavioral Healthcare Network, a component unit of the County, categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The Network s investments in bond mutual funds in the amount of $782,640 are considered a Level 2 input. NOTE C: INTERFUND TRANSACTIONS Interfund receivables/payables balances as of September 30, 2016, consisted of an interfund receivable in the General Fund and an interfund payable in the nonmajor governmental and internal service funds in the amount of $464,228. These balances resulted from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made. For the year ended September 30, 2016, interfund transfers consisted of the following: Transfers Out Delinquent Nonmajor Nonmajor Tax Jail General Central Governmental Revolving Commissary Fund Dispatch Funds Fund Fund Total Transfers In: General Fund $ 152,000 $ - $ 78,565 $ 288,952 $ 40,000 $ 559,517 Nonmajor governmental funds 937,948 78,438 57,000 308,800-1,382,186 Internal service funds - - 500 - - 500 $ 1,089,948 $ 78,438 $ 136,065 $ 597,752 $ 40,000 $ 1,942,203 Transfers are used to: (1) move revenues from the fund that is required to collect them to the fund that is required or allowed to expend them; (2) move receipts restricted to or allowed for debt service from the funds collecting the receipts to the debt service fund as debt service payments become due; and (3) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations. - 23 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE D: CAPITAL ASSETS Primary Government Capital asset activity for the primary government for the year ended September 30, 2016, was as follows: Beginning Ending Balance Additions Disposals Balance Governmental Activities Capital assets not being depreciated: Land $ 719,906 $ - $ - $ 719,906 Capital assets being depreciated: Buildings 20,610,821 130,202-20,741,023 Equipment 6,197,384 645,200 (1,989,623) 4,852,961 Total capital assets being depreciated 26,808,205 775,402 (1,989,623) 25,593,984 Less accumulated depreciation for: Buildings (11,192,072) (510,687) - (11,702,759) Equipment (4,993,109) (351,602) 1,974,440 (3,370,271) Total accumulated depreciation (16,185,181) (862,289) 1,974,440 (15,073,030) Total capital assets being depreciated, net 10,623,024 (86,887) (15,183) 10,520,954 Governmental activities capital assets, net $ 11,342,930 $ (86,887) $ (15,183) $ 11,240,860 Depreciation expense was charged to functions/programs of the primary government as follows: Depreciation of governmental activities by function: General government $ 320,311 Public safety 298,198 Health and welfare 78,419 Recreation and cultural 41,681 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 123,680 $ 862,289 Discretely Presented Component Units Capital asset activity for the Drain Commission for the year ended September 30, 2016, was as follows: Beginning Ending Balance Additions Disposals Balance Component Unit - Drain Commission Infrastructure $ 1,383,675 $ 31,605 $ - $ 1,415,280 Less accumulated depreciation (388,912) (39,367) - (428,279) Capital assets, net $ 994,763 $ (7,762) $ -0- $ 987,001-24 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE D: CAPITAL ASSETS - CONTINUED Discretely Presented Component Units - Continued Capital asset activity for the Medical Care Facility for the year ended September 30, 2016, was as follows: Beginning Ending Balance Additions Disposals Balance Component Unit - Medical Care Facility Capital assets being depreciated: Land and land improvements $ 187,037 $ 8,895 $ (1,159) $ 194,773 Buildings and building improvements 4,425,290 80,549 (12,940) 4,492,899 Equipment, furniture, and fixtures 1,121,808 - (171,876) 949,932 Total capital assets 5,734,135 89,444 (185,975) 5,637,604 Less accumulated depreciation for: Land and land improvements (116,699) (6,783) 1,158 (122,324) Buildings and building improvements (3,683,349) (123,187) 12,940 (3,793,596) Equipment, furniture, and fixtures (1,031,405) (21,933) 170,336 (883,002) Total accumulated depreciation (4,831,453) (151,903) 184,434 (4,798,922) Capital assets, net $ 902,682 $ (62,459) $ (1,541) $ 838,682 Capital asset activity for the Woodlands Behavioral Healthcare Network for the year ended September 30, 2016, was as follows: Beginning Ending Balance Additions Disposals Balance Component Unit - Woodlands Behavioral Healthcare Network Capital assets not being depreciated: Construction in progress $ 68,426 $ - $ (68,426) $ -0- Capital assets being depreciated: Equipment 973,731 185,094 68,426 1,227,251 Less accumulated depreciation for: Equipment (762,972) (101,645) - (864,617) Total capital assets being depreciated, net 210,759 83,449 68,426 362,634 Capital assets, net $ 279,185 $ 83,449 $ -0- $ 362,634-25 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE D: CAPITAL ASSETS - CONCLUDED Discretely Presented Component Units - Concluded Capital asset activity for the Road Commission for the year ended September 30, 2016, was as follows: Beginning Additions/ Disposals/ Ending Balance Reclassifications Reclassifications Balance Component Unit - Road Commission Capital assets not being depreciated Land $ 73,146 $ - $ - $ 73,146 Infrastructure - land improvements 10,698,457 - - 10,698,457 Construction in progress - 61,534-61,534 Total capital assets not being depreciated 10,771,603 61,534-0- 10,833,137 Capital assets being depreciated: Land improvements 661,340 - - 661,340 Buildings and improvements 7,615,991 - - 7,615,991 Equipment 9,705,923 997,068 (189,194) 10,513,797 Infrastructure 64,778,854 2,985,881-67,764,735 Total capital assets being depreciated 82,762,108 3,982,949 (189,194) 86,555,863 Less accumulated depreciation for: Land improvements (657,273) - - (657,273) Buildings and improvements (3,581,253) (256,309) - (3,837,562) Equipment (8,845,826) (347,922) 189,194 (9,004,554) Infrastructure (42,745,143) (2,648,291) - (45,393,434) Total accumulated depreciation (55,829,495) (3,252,522) 189,194 (58,892,823) Total capital assets being depreciated, net 26,932,613 730,427-0- 27,663,040 Capital assets, net $ 37,704,216 $ 791,961 $ -0- $ 38,496,177-26 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE E: LONG-TERM DEBT The following is a summary of changes in long-term debt (including current portions) of the County for the year ended September 30, 2016. Beginning Ending Due Within Balance Additions Reductions Balance One Year Primary Government Governmental Activities General obligation bonds $ 3,260,000 $ - $ (285,000) $ 2,975,000 $ 295,000 Compensated absences 464,033 281,583 (369,433) 376,183 376,183 3,724,033 281,583 (654,433) 3,351,183 671,183 Add (less) deferred amounts for: Issuance premium 33,223 - (4,747) 28,476 4,746 Issuance discount (1,843) - 116 (1,727) (115) Total Governmental Activities $ 3,755,413 $ 281,583 $ (659,064) $ 3,377,932 $ 675,814 Component Units Board of Public Works General obligation bonds $ 31,679,800 $ - $ (2,080,200) $ 29,599,600 $ 1,943,200 Add deferred amounts for: Issuance premiums 125,900 - (15,738) 110,162 15,738 Total Board of Public Works $ 31,805,700 $ -0- $ (2,095,938) $ 29,709,762 $ 1,958,938 Road Commission Michigan Transportation Fund Bonds $ 5,430,000 $ - $ (300,000) $ 5,130,000 $ 310,000 Installment loan payable 187,614 442,360 (86,271) 543,703 94,594 Compensated absences 94,732 33,035 (23,683) 104,084 26,021 5,712,346 475,395 (409,954) 5,777,787 430,615 Add deferred amounts for: Issuance premium 26,415 - (1,467) 24,948 1,467 Total Road Commission $ 5,738,761 $ 475,395 $ (411,421) $ 5,802,735 $ 432,082 Woodlands Behavioral Healthcare Network Compensated absences $ 169,550 $ 345,343 $ (324,523) $ 190,370 $ 190,370 Primary Government General Obligation Bonds - The County issues general obligation bonds to provide funds to construct major capital facilities and refund previously issued bonds. Such bonds are generally repaid from voter-approved property taxes levies, interfund transfers, and contributions from local municipalities. The County has pledged its full faith and credit for payment on the general obligation bonds. Also, under the terms of certain bond agreements, local units have pledged their full faith and credit to pay the County each year such amounts sufficient to make principal and interest payments on those bonds. The original amount issued of general obligation bonds outstanding at September 30, 2016, was $4,010,000. - 27 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE E: LONG-TERM DEBT - CONTINUED Primary Government - Concluded General obligation bonds outstanding at year end are as follows: Issuance Interest Beginning Ending Due Within Date Rates Balance Additions Reductions Balance One Year General Obligation Bonds Governmental Activities: Building Authority - Law and Courts Refunding Series 2013 5/1/2013 1.75%-3.25% $ 1,060,000 $ - $ (50,000) $ 1,010,000 $ 50,000 Building Authority - Law and Courts Refunding Series 2011 10/27/2011 3.00-4.00% 2,200,000 - (235,000) 1,965,000 245,000 $ 3,260,000 $ -0- $ (285,000) $ 2,975,000 $ 295,000 Annual debt service requirements to maturity for governmental activities are as follows: Compensated Absences Years Ending Governmental Activities September 30, Principal Interest 2017 $ 295,000 $ 93,038 2018 310,000 84,538 2019 320,000 75,113 2020 335,000 65,388 2021 350,000 54,313 2022-2026 945,000 118,688 2027-2031 350,000 45,475 2032 70,000 2,275 $ 2,975,000 $ 538,828 In accordance with the County personnel policies and/or contracts negotiated with various employee groups of the County, individual employees have vested rights upon termination of employment to receive payment for unused vacation and sick leave under formulas and conditions specified in their respective personnel policies and/or contracts. The dollar amount of these vested rights, including related payroll taxes, amounted to $376,183 for governmental activities at September 30, 2016, all of which has been recorded as current liabilities. Compensated absences are normally liquidated by the General Fund. Compensated absences are shown as a current liability because historically the amount used during the year is about the same about as the prior year s ending balance. Component Unit - Board of Public Works General obligation bonds of component units are offset by capital leases receivable from the local units of government for which the bonds were issued in the County s name. The terms of these capital leases, which relate to water and sewer systems constructed by the County on behalf of the local units, match the debt maturity requirements of the related bonds. The original amount issued of general obligation bonds outstanding at September 30, 2016, was $45,280,000. - 28 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE E: LONG-TERM DEBT - CONTINUED Component Unit - Board of Public Works - Continued General obligation bonds outstanding at year end are as follows: Issuance Interest Beginning Ending Due Within Date Rates Balance Additions Reductions Balance One Year Penn Township 10/19/2001 4.50% $ 366,000 $ - $ (15,000) $ 351,000 $ 15,000 Vandalia Sewer 5/14/1999 4.75% 297,000 - (11,000) 286,000 11,000 Ontwa Township Refunding 4/19/2005 3.50-4.75% 2,430,000 - (565,000) 1,865,000 605,000 Calvin Township Sewer 4/23/2002 4.75% 271,000 - (8,000) 263,000 8,000 Edwardsburg Sewer 5/17/2006 4.13% 1,812,800 - (51,700) 1,761,100 51,700 Lakes Area Sewer Authority 9/1/2009 3.50% 7,705,000 - (117,000) 7,588,000 123,000 Donnell Lake Sewer 1/1/1997 5.25 175,000 - (175,000) -0- - Vandalia Water - Series A 11/9/2010 3.00% 8,223,000 - (223,000) 8,000,000 224,000 Vandalia Water - Series B 11/9/2010 3.00% 929,000 - (23,000) 906,000 23,000 Porter Township Sewer Refunding 11/17/2011 2.00-4.00% 6,590,000 - (735,000) 5,855,000 730,000 Painter, Juno and, Christiana Sewer Refunding 3/29/2012 3.00-3.15% 960,000 - (125,000) 835,000 120,000 Cedar Lake Sewer - Series A 8/15/2013 2.75% 1,608,000 - (25,500) 1,582,500 26,500 Cedar Lake Sewer - Series B 8/15/2013 2.75% 313,000 - (6,000) 307,000 6,000 31,679,800-0- (2,080,200) 29,599,600 1,943,200 Add deferred amounts for: Issuance premiums 125,900 - (15,738) 110,162 15,738 Total Board of Public Works $ 31,805,700 $ -0- $ (2,095,938) $ 29,709,762 $ 1,958,938 Annual debt service requirements to maturity for board of public works are as follows: Years Ending September 30, Principal Interest 2017 $ 1,943,200 $ 1,020,342 2018 1,981,200 950,541 2019 1,970,200 878,186 2020 1,356,200 802,811 2021 1,359,200 756,701 2022-2026 5,186,000 3,065,712 2027-2031 2,958,000 2,402,318 2032-2036 3,226,000 1,886,870 2037-2041 3,493,000 1,323,976 2042-2046 3,627,100 728,617 2047-2051 2,428,500 177,653 2052 71,000 1,980 $ 29,599,600 $ 13,995,707-29 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE E: LONG-TERM DEBT - CONTINUED Component Unit - Board of Public Works - Concluded Advance Refundings - Prior On April 12, 2005, the County defeased a portion of the 2000 Cass County Sanitary Sewage Disposal System (Ontwa Township Section) Bonds, which were due and payable through May 1, 2019. This was accomplished by establishing an irrevocable trust with an escrow agent composed of cash and U.S. Government Securities sufficient to meet the applicable principal and interest payments. The County issued 2005 Cass County Sanitary Sewage Disposal System (Township of Ontwa Section) Refunding Bonds in the amount of $6,565,000 to fund escrow amounts and pay the cost of issuance of the refunding bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the County s financial statements. At September 30, 2016, bonds due and payable through May 1, 2019 for the 2000 Cass County Sanitary Sewage Disposal System (Ontwa Township Section) Bonds in the amount of $2,350,000 are considered defeased. On October 27, 2011, the County defeased a portion of the Building Authority - Law and Courts Bonds, which were due and payable through December 1, 2022. This was accomplished by establishing an irrevocable trust with an escrow agent composed of cash and U.S. Government Securities sufficient to meet the applicable principal and interest payments. The County issued 2011 Building Authority Refunding Bonds in the amount of $2,850,000 to fund escrow amounts and pay the cost of issuance of the refunding bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the County s financial statements. At September 30, 2016, bonds due and payable through December 1, 2022 for the Building Authority - Law and Courts Bonds in the amount of $1,970,000 are considered defeased. On November 17, 2011, the County defeased a portion of the Porter Township Sewage Disposal System Bonds, which were due and payable through May 1, 2024. This was accomplished by establishing an irrevocable trust with an escrow agent composed of cash and U.S. Government Securities sufficient to meet the applicable principal and interest payments. The County issued Porter Township Sewage Disposal Refunding Bonds in the amount of $8,795,000 to fund escrow amounts and pay the cost of issuance of the refunding bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the County s financial statements. At September 30, 2016, bonds due and payable through May 1, 2024 for the Porter Township Sewage Disposal System Bonds in the amount of $7,200,000 are considered defeased. On March 29, 2012, the County defeased a portion of the Painter, Juno, and Christiana Sewage Disposal Bonds, which were due and payable through May 1, 2024. This was accomplished by establishing an irrevocable trust with an escrow agent composed of cash and U.S. Government Securities sufficient to meet the applicable principal and interest payments. The County issued Painter, Juno, and Christiana Sewage Disposal Refunding Bonds, Series 2012 in the amount of $1,360,000 to fund escrow amounts and pay the cost of issuance of the refunding bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the County s financial statements. At September 30, 2016, bonds due and payable through May 1, 2024 for the Painter, Juno, and Christiana Sewage Disposal Bonds in the amount of $1,185,000 are considered defeased. On May 1, 2013, the County defeased the remaining 2003 Building Authority - USDA E-911 Project Bonds, which were due and payable through June 1, 2032. This was accomplished by establishing an irrevocable trust with an escrow agent composed of cash and U.S. Government Securities sufficient to meet the applicable principal and interest payments. The County issued Building Authority Refunding Bonds in the amount of $1,160,000 to fund escrow amounts and pay the cost of issuance of the refunding bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the County s financial statements. At September 30, 2016, bonds due and payable through June 1, 2032 for the 2003 Building Authority - USDA E- 911 Project Bonds in the amount of $955,000 are considered defeased. - 30 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE E: LONG-TERM DEBT - CONCLUDED Component Unit - Road Commission Issuance Interest Beginning Ending Due Within Date Rates Balance Additions Reductions Balance One Year Michigan Transportation Fund Bonds MTF- Act 51 Refunding Bonds Series 2007 10/1/2007 4.00-4.13% $ 2,760,000 $ - $ (180,000) $ 2,580,000 $ 190,000 MTF- Act 51 Refunding Bonds Series 2012 7/19/2012 2.00-3.10% 2,670,000 - (120,000) 2,550,000 120,000 Installment Loans Payable Various 2.29-2.69% 187,614 442,360 (86,271) 543,703 94,594 Unamortized Bond Premium 26,415 (1,467) 24,948 1,467 Compensated Absences 94,732 33,035 (23,683) 104,084 26,021 Annual debt service requirements to maturity for long-term debt are as follows: $ 5,738,761 $ 475,395 $ (411,421) $ 5,802,735 $ 432,082 Years Ending September 30, Principal Interest 2017 $ 404,594 $ 180,668 2018 436,087 167,527 2019 453,752 153,113 2020 461,482 138,959 2021 452,213 123,715 2022-2026 1,990,575 414,352 2027-2031 1,110,000 125,511 2032-2033 365,000 11,396 $ 5,673,703 $ 1,315,241 NOTE F: LEASES Woodlands Behavioral Healthcare Network has entered into various operating leases for the use of real and personal property. The following is a schedule of future minimum lease payments. Years Ending September 30, Amount 2017 $ 162,168 2018 159,108 2019 16,200 $ 337,476 Lease expense during the year amounted to $161,928. - 31 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE G: RISK MANAGEMENT The County 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 County is insured with private carriers for employee health care, life insurance, and disability coverage. The County is a member of the Michigan Municipal Workers Compensation Fund for it workers compensation coverage. The County is a member of the Michigan Municipal Risk Management Authority (MMRMA) for its property and general liability insurance coverage. The County makes quarterly contributions to MMRMA based on actuarial studies using historical data and insurance industry statistics. Such contributions as received by MMRMA are allocated between its general and member retention funds. Economic resources in the MMRMA s general fund are expended for reinsurance coverage, claim payments, and certain general and administrative costs, whereas resources in the member retention fund are used for loss payments and defense costs up to the members self-insured retention limits along with certain other memberspecific costs. Accordingly, the County records a restricted asset for its portion of the unexpended member retention fund. At September 30, 2016, the balance of the County s member retention fund was $283,309. Changes in the estimated claims liability are as follows: 2016 2015 Unpaid claims, beginning of year $ - $ - Claims dismissed (1,506,487) (7,611) Incurred claims 1,651,773 67,747 Claim payments (145,286) (60,136) Unpaid claims, end of year $ -0- $ -0- Additionally, the County provides health and wellness benefits to its employees through a self-insurance program that is administered by the County. Premiums are paid into the Self-insurance internal service fund by all other funds and are available to pay claims and administrative costs of the program. Interfund premiums are based primarily upon claims experience and are reported as interfund services provided and used. The County estimates the liability for this self-insured coverage and includes both those claims that have been reported as well as those that have not yet been reported. These estimates are prepared with the assistance of the County s third-party administrators for claims management and are recorded in the Self-Insurance internal service fund. Changes in the estimated claims are as follows: 2016 2015 Unpaid claims, beginning of year $ - $ - Incurred claims 2,712,743 2,666,926 Claim payments (2,712,743) (2,666,926) Unpaid claims, end of year $ -0- $ -0- - 32 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE H: PROPERTY TAXES County special property taxes are levied on December 1 of each year (the lien date) and are due in full by March 1 of the year following the levy, at which time uncollected taxes become delinquent. Pursuant to Public Act 357 of 2005, which provides a funding mechanism to replace state revenue sharing payments to counties, the County s general operating levy date has shifted from December 1 to July 1 of each year. Property taxes are levied on the assessed taxable value of the property as established by local units, accepted by the County and equalized under State statute at approximately 50% of the current estimated market value. The assessed and taxable value of real and personal property for the 2015 and 2016 levies, for which revenue was recognized in 2015, was $1,981,641,831 and $2,019,090,686, respectively. The general operating tax rate for these levies was 4.6359 mills, plus an additional 0.9036 mills assessed for Cass County Council on Aging operations, 0.4805 mills assessed for Drug Enforcement activities, and 0.2000 mills assessed for 911 Central Dispatch. NOTE I: CONTINGENT LIABILITIES The County is a defendant in various lawsuits. Although the outcome of these lawsuits is not presently determinable, in the opinion of the County and its attorney, the resolution of these matters will not have a material adverse effect on the financial condition of the County. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the Federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures, which may be disallowed by the grantor, cannot be determined at this time although the County expects such amounts, if any, to be immaterial. NOTE J: EMPLOYEE RETIREMENT SYSTEM Plan Description The City participates in the Municipal Employees Retirement System (MERS) of Michigan. MERS is an agent multiple-employer, statewide public employee pension plan established by the Michigan s Legislature under Public Act 135 of 1945 and administered by a nine (9) member Retirement Board. MERS issues a publicly available financial report that includes financial statements and required supplementary information. This report may be obtained accessing MERS website at www.mersofmich.com. Summary of Significant Accounting Policies For the purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Municipal Employees Retirement System (MERS) of Michigan and additions to/deductions from MERS fiduciary net position have been determined on the same basis as they are reported by MERS. For this purposes, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. - 33 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE J: EMPLOYEE RETIREMENT SYSTEM - CONTINUED Benefits Provided The plan provides certain retirement, disability, and death benefits to plan members and beneficiaries. Public Act 427 of 1984, as amended, established and amends the benefit provisions of the participants in MERS. The MERS plan covers full-time employees at the City including general employees, police union, and Department of Public Services employees. Retirement benefits for employees are calculated as 2.0 percent of the employee s five-year final average compensation times the employee s years of service with a maximum of 80 percent of final average compensation. Normal retirement age is 60 with a reduced benefit at age 50 with 25 years of service or age 55 with 15 years of service. Deferred retirement benefits vest after 6 years of credited service, but are not paid until the date retirement would have occurred had the member remained an employee. Employees are eligible for non-duty disability benefits after 6-10 years of service and for duty-related disability benefits upon hire. Disability retirement benefits are determined in the same manner as retirement benefits but are payable immediately and if duty-related without an actuarial reduction for retirement before age 60 is not applied. An employee who leaves service may withdraw his or her contributions, plus any accumulated interest. Benefit terms, within the parameters established by MERS, are generally established and amended by authority of the City Council, generally after negotiations of these terms with the affected unions. Police employee benefit terms may be subject to binding arbitration in certain circumstances. At the December 31, 2015 valuation date, the following employees were covered by the benefit terms: Contributions Inactive employees or beneficiaries receiving benefits 86 Inactive employees entitled to but not yet receiving benefits 19 Active employees 154 Article 9, Section 24 of the State of Michigan constitution requires that financial benefits arising on account of employee service rendered in each year be funded during that year. Accordingly, MERS retains an independent actuary to determine the annual contribution. The employer is required to contribute amounts at least equal to the actuarially determined rate, as established by the MERS retirement board. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by plan members during the year, with an additional amount to finance any unfunded accrued liability. The employer may establish contribution rates to be paid by its covered employees. Employer contributions range from 8.54% to 25.80% based on annual payroll for open divisions. Net Pension Liability The employer s net pension liability was measured as of December 31, 2015, and the total pension liability used to calculate the net pension liability was determined by an annual actuarial valuation as of that date. 259-34 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE J: EMPLOYEE RETIREMENT SYSTEM - CONTINUED Net Pension Liability - Concluded Changes in the net pension liability during the measurement year were as follows: Increase (Decrease) Total Pension Plan Fiduciary Net Pension Liability Net Position Liability Changes in Net Pension Liability (a) (b) (a)-(b) Balances at December 31, 2014 $ 25,503,674 $ 19,509,882 $ 5,993,792 Changes for the Year Service cost 767,079-767,079 Interest on total pension liability 2,085,115-2,085,115 Changes in benefits (43,484) - (43,484) Difference between expected and actual experience 57,943-57,943 Changes in assumptions 1,587,259-1,587,259 Employer contributions - 653,969 (653,969) Employee contributions - 544,455 (544,455) Net investment income - (298,627) 298,627 Benefit payments, including employee refunds (1,226,187) (1,226,187) -0- Administrative expense - (43,061) 43,061 Other changes 1-1 Net changes 3,227,726 (369,451) 3,597,177 Balances at December 31, 2015 $ 28,731,400 $ 19,140,431 $ 9,590,969 Pension Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended September 30, 2016, the County recognized pension expense of $1,410,768. The County reported deferred outflows and inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 46,356 $ - Changes in assumptions 1,269,808 - Net difference between projected and actual earnings on pension plan investments 1,703,788 - Contributions subsequent to the measurement date* 543,014 - Total $ 3,562,966 $ -0- * The amount reported as deferred outflows of resources resulting from contributions subsequent to the measurement date will be recognized as a reduction in the net pension liability for the year ending September 30, 2017. - 35 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE J: EMPLOYEE RETIREMENT SYSTEM - CONTINUED Pension Expenses and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - Concluded Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Years Ending September 30, Pension Expense 2017 $ 769,952 2018 769,952 2019 769,952 2020 710,096 Actuarial Assumptions The total pension liability in the December 31, 2015 annual actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation: 3%-4% Salary increases: 4.5% in the long-term (1%, 2%, and 3% for calendar years 2014, 2015, and 2016, respectively). Investment rate of return: 8.25%, net of investment expenses, including inflation. Although no specific price inflation assumptions are needed for the valuation, the 4.5% long-term wage inflation assumption would be consistent with a price inflation of 3%-4%. Mortality rates used were based on the 1994 Group Annuity Mortality Table of a 50% Male and 50% Female blend. For disabled retirees, the regular mortality table is used with a 10-year set forward in ages to reflect the higher expected mortality rates of disabled members. The actuarial assumptions used in valuation were based on the results of the most recent actuarial experience study in 2015. Discount Rate The discount rate used to measure the total pension liability is 8.25%. The projection of cash flows used to determine the discount rate assumes that employer and employee contributions will be made at the rates agreed upon for employees and the actuarially determined rates for employers. Projected Cash Flows Based on these assumptions, the pension plan s fiduciary net position was projected to be available to pay all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. - 36 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE J: EMPLOYEE RETIREMENT SYSTEM - CONCLUDED Projected Cash Flows - Concluded The long-term expected rate of return on pension plan investments was determined using a model method in which the best-estimate ranges of expected future real rates of return (expected returns, net of investment and administrative expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Long-Term Expected Asset Class Target Allocation Real Rate of Return Global Equity 57.5% 5.02% Global Fixed Income 20.0% 2.18% Real Assets 12.5% 4.23% Diversifying Strategies 10.0% 6.56% Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the employer, calculated using the discount rates of 8.25%, as well as what the City s net pension liability would be using a discount rate that is 1% lower (7.25%) or 1% higher (9.25%) than the current rate. COMPONENT UNITS Current 1% Decrease Discount Rate 1% Increase Net pension liability $ 13,009,569 $ 9,590,969 $ 6,710,494 The Cass County Road Commission, Woodlands Behavioral Healthcare Network, and the Cass County Medical Care Facility all have separate retirement plans. A separate account is maintained by MERS for the Medical Care Facility. The Road Commission and Woodlands Behavioral Healthcare Network maintain defined contribution retirement plans. Details applicable to the component unit pension plans are available in their separately issued financial statements. The actuarially determined contribution requirements have been met, where applicable. NOTE K: POST-EMPLOYMENT BENEFITS The Road Commission currently provides post-employment health care, dental and life insurance benefits to full time retirees. The contribution by the Road Commission during the fiscal year ending 2016 amounted to $143,954. The Woodlands Behavioral Healthcare Network provides health insurance benefits to certain retirees, which are advance-funded on a discretionary basis. For the year ended September 30, 2016, the Authority contributed $0 to the Plan, as the Plan is overfunded and no contribution was required. Details applicable to the component unit post-employment benefit plans are available in their separately issued financial statements. - 37 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE L: DETAILS OF FUND BALANCE CATEGORIES AND CLASSIFICATIONS In the fund financial statements, the governmental funds report the following fund balance categories: Nonspendable - assets that are not available in a spendable form such as inventory, prepaid expenditures, and long-term receivables not expected to be converted to cash in the near term. It also includes funds that are legally or contractually required to be maintained intact such as the corpus of a permanent fund or foundation. Restricted - amounts that are required by external parties to be used for a specific purpose. Constraints are externally imposed by creditors, grantors, contributors or laws, regulations or enabling legislation. Committed - amounts constrained on use imposed by formal action of the government s highest level of decision making authority (i.e., Board, Council, etc.). Assigned - amounts intended to be used for specific purposes. This is determined by the governing body, the budget or finance committee or a delegated municipality official. Unassigned - all other resources; the remaining fund balance after non-spendable, restrictions, commitments, and assignments. This class only occurs in the General Fund, except for cases of negative fund balances. Negative Fund Balances are always reported as Unassigned, no matter which fund the deficit occurs in. Fund Balance Classification Policies and Procedures For committed fund balance, the County of Cass, Michigan s highest level of decision-making authority is the Board of Commissioners. The formal action that is required to be taken to establish (and modify or rescind) a fund balance commitment is Board Resolution. For assigned fund balance, Board of Commissioners has not approved a policy indicating who is authorized to assign amounts to a specific purpose. As a result, this authority is retained by the Board of Commissioners. The County of Cass, Michigan has not adopted a policy that defines the order of usage for fund balance amounts classified as restricted, committed, assigned, or unassigned. In the absence of such a policy, resources with the highest level of restriction will be used first. - 38 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE L: DETAILS OF FUND BALANCE CATEGORIES AND CLASSIFICATIONS - CONCLUDED Fund Balance Classification Policies and Procedures - Concluded Nonmajor General Central Governmental Fund Dispatch Funds Total Fund Balances Nonspendable Prepaids $ 64,393 $ 4,718 $ 9,254 $ 78,365 Restricted Legal Restrictions 237,643 - - 237,643 Parks and Recreation - - 92,444 92,444 Friend of the Court - - 184,620 184,620 Family Drug Court Implementation - - 3 3 Marcellus Township Community Policing - - 47,170 47,170 Register of Deeds Automation - - 29,006 29,006 Area Swine Agent - - 9,746 9,746 Building Strong Families - - 1,039 1,039 Animal Control Donation - - 22,746 22,746 Central Dispatch - 2,126,189-2,126,189 Homeland Security - - 1,683 1,683 Concealed Pistol Licensing - - 21,780 21,780 DARE Program - - 45,154 45,154 Sheriff's Drug Forfeiture - - 203,684 203,684 Sheriff's Non-Drug Forfeiture - - 106,716 106,716 Corrections Officers Training - - 58,571 58,571 Law Library - - 2,868 2,868 Drug Enforcement Team - - 1,004,046 1,004,046 K9 Drug Fund - - 32,651 32,651 Traffic Enforcement - - 26,631 26,631 Sheriff's Justice Training Grant - - 12,014 12,014 Local Law Enforcement Block Grant - - 3,788 3,788 Community Policing Scholarship Golf - - 4,771 4,771 Community Development Block Grant - - 78,782 78,782 Community Corrections Grant - - 1,390 1,390 Veterans' Trust - - 1,521 1,521 Historical Commission - - 15,617 15,617 Tribal Casino - - 3,193 3,193 Child Care - - 136,848 136,848 Building Authority E-911 Building (Debt Service) - - 3,045 3,045 Committed Budgetary stabilization 536,073 - - 536,073 Assigned Future cash flows 3,744,988 - - 3,744,988 Public improvement - - 419,619 419,619 Social welfare 15,331 - - 15,331 Soldiers and sailors relief 4,648 - - 4,648 Child Care Social Welfare 194,972 - - 194,972 Animal Control Donation - - 103,169 103,169 Unassigned 5,533,455 - - 5,533,455 TOTAL FUND BALANCES $ 10,331,503 $ 2,130,907 $ 2,683,569 $ 15,145,979-39 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE M: RESTRICTED NET POSITION Restrictions of net position shown in the government-wide financial statements indicate that restrictions imposed by the funding source or some other outside source which precludes their use for unrestricted purposes. The following are the various net position restrictions as of September 30, 2016: Governmental activities Restricted for: Legal restrictions $ 237,643 Drug enforcement team 1,004,046 Central dispatch 2,130,907 Self-insurance reserves 283,309 Other purposes Parks and Recreation 92,444 Friend of the Court 184,620 Family Drug Court Implementation 3 Marcellus Township Community Policing 47,170 Register of Deeds Automation 31,106 Area Swine Agent 9,746 Building Strong Families 1,039 Animal Control Donation 22,746 Homeland security 2,787 Concealed Pistol Licensing 21,780 DARE Program 45,154 Sheriff's Drug Forfeiture 203,684 Sheriff's Non-Drug Forfeiture 106,716 Corrections Officers Training 58,571 Law Library 2,868 K9 Drug Fund 32,651 Traffic Enforcement 26,631 Sheriff's Justice Training Grant 12,014 Local Law Enforcement Block Grant 3,788 Community Policing Scholarship Golf 4,771 Community Development Block Grant 78,782 Community Corrections Grant 1,390 Veterans' Trust 1,521 Historical Commission 15,617 Tribal Casino 3,193 Child Care 136,848 $ 4,803,545 Component units Restricted for other purposes: Capital projects $ 308,169-40 -
NOTES TO FINANCIAL STATEMENTS September 30, 2016 NOTE N: CHANGE IN ACCOUNTING PRINCIPLES GASB Statement No. 72, Fair Value Measurement and Application, was implemented during the year. This statement addresses accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement provides guidance for determining a fair value measurement for financial reporting purposes. This statement also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. NOTE O: UPCOMING ACCOUNTING PRONOUNCEMENTS In August 2015, the GASB issued Statement No. 77, Tax Abatement Disclosures. The statement improves financial reporting through the disclosure of information about the nature and magnitude of tax abatements that are not consistently or comprehensively reported to the public at present. The County is currently evaluating the impact this standard will have on the financial statements when adopted during the 2016-2017 fiscal year. In January 2016, the GASB issued Statement No. 80, Blending Requirements for Certain Component Units - An Amendment of GASB Statement No. 14. The Statement amends the blending requirements for the financial statement presentation of component units of all state and local governments and requires the blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. The County is currently evaluating the impact this standard will have on the financial statements when adopted during the 2016-2017 fiscal year. In March 2016, the GASB issued Statement No. 82, Pension Issues - An Amendment of GASB Statements No. 67, No. 68, and No. 73. The Statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The County is currently evaluating the impact this standard will have on the financial statements when adopted during the 2017-2018 fiscal year. NOTE P: SUBSEQUENT EVENT The County of Cass entered into an agreement with Advanced Correctional Healthcare for Inmate Medical Care in November of 2016 at a cost of $247,125 to the County. It is expected that future revenues and available fund balance in the General Fund will be sufficient to cover this future commitment. - 41 -
REQUIRED SUPPLEMENTARY INFORMATION
General Fund BUDGETARY COMPARISON SCHEDULE - REVENUES AND OTHER FINANCING SOURCES (NON-GAAP BUDGETARY BASIS) Year Ended September 30, 2016 REVENUES Taxes Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Real and personal property taxes $ 9,256,518 $ 9,292,518 $ 9,434,754 $ 142,236 Industrial facilities tax 58,872 66,292 66,297 5 Other taxes 87,785 87,785 237,670 149,885 Total taxes 9,403,175 9,446,595 9,738,721 292,126 Intergovernmental Juvenile officers grant 27,137 27,137 27,317 180 Judges salaries grant 240,348 240,348 241,124 776 Liquor tax 144,430 151,430 153,207 1,777 Secondary road patrol 71,238 71,238 71,238-0- Marine safety grant 16,000 16,000 15,210 (790) Emergency management grant 27,932 27,932 31,040 3,108 Prosecutor - cooperative reimbursement program 133,500 133,500 136,970 3,470 Friend of the Court - cooperative reimbursement program 688,317 688,317 738,767 50,450 Friend of the Court - other 89,480 89,480 90,130 650 Victim rights grant 90,810 90,810 90,810-0- Survey and remonumentation grant 51,505 51,505 50,175 (1,330) State court equity funding 250,000 250,000 246,021 (3,979) COPS 12,000 12,000 10,739 (1,261) State shared revenue 1,041,225 1,041,225 1,041,228 3 Other intergovernmental revenue 433,520 638,021 525,767 (112,254) Total intergovernmental 3,317,442 3,528,943 3,469,743 (59,200) Licenses and permits Dog licenses 120,000 120,000 103,698 (16,302) Soil and erosion permits 1,500 15,115 19,220 4,105 Other licenses and permits 16,000 16,000 860 (15,140) Total licenses and permits 137,500 151,115 123,778 (27,337) Fines and forfeits Circuit court - 2,500 2,500-0- District court 58,650 58,650 68,123 9,473 Total fines and forfeits 58,650 61,150 70,623 9,473-42 -
General Fund BUDGETARY COMPARISON SCHEDULE - REVENUES AND OTHER FINANCING SOURCES (NON-GAAP BUDGETARY BASIS) - CONCLUDED Year Ended September 30, 2016 REVENUES - CONCLUDED Charges for services Circuit court 78,130 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) $ $ 113,130 $ 110,527 $ (2,603) District court 412,510 505,363 513,892 8,529 Friend of the court 51,200 51,200 58,576 7,376 Probate/family court 40,475 40,475 44,286 3,811 Clerk/register 426,100 426,100 486,018 59,918 Policing contract 92,621 92,621 67,609 (25,012) Tax administration fees 138,309 138,309 135,902 (2,407) Other charges for services 213,510 240,810 262,977 22,167 Total charges for services 1,452,855 1,608,008 1,679,787 71,779 Interest and rents Interest revenue 7,140 7,140 9,445 2,305 Jail rental 170,000 170,000 97,915 (72,085) Total interest and rents 177,140 177,140 107,360 (69,780) Other revenue/reimbursements Reimbursement - attorney fees 34,600 34,600 42,675 8,075 Reimbursement - property/liability insurance 135,000 135,000 55,275 (79,725) Reimbursement - jail phone costs - 10,000 25,864 15,864 Reimbursement - sheriff's work release program 1,500 1,500 2,480 980 Reimbursement - jail medication 2,000 2,000 6,573 4,573 Other revenue and reimbursements 124,088 127,588 153,696 26,108 Total other revenue/reimbursements 297,188 310,688 286,563 (24,125) TOTAL REVENUES 14,843,950 15,283,639 15,476,575 192,936 OTHER FINANCING SOURCES Transfers in 1,108,019 1,133,744 407,517 (726,227) TOTAL REVENUES AND OTHER FINANCING SOURCES $ 15,951,969 $ 16,417,383 $ 15,884,092 $ (533,291) - 43 -
General Fund BUDGETARY COMPARISON SCHEDULE - EXPENDITURES AND OTHER FINANCING USES (NON-GAAP BUDGETARY BASIS) Year Ended September 30, 2016 EXPENDITURES Current General government Board of commissioners 167,207 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) $ $ 176,242 $ 157,406 $ 18,836 Circuit court 586,550 571,829 528,167 43,662 District court 757,596 1,003,317 999,172 4,145 Friend of the court 983,378 1,019,988 1,019,625 363 Jury commission 1,307 1,307-1,307 Probate court 368,375 373,775 372,171 1,604 Family/juvenile court 738,585 748,585 670,799 77,786 Indigent defense 256,500 272,500 272,194 306 Administrator 235,736 269,311 265,568 3,743 Elections 62,613 62,613 55,072 7,541 Civil counsel 52,300 77,300 66,029 11,271 Clerk/register 489,261 517,066 492,851 24,215 Controller 174,971 182,651 181,496 1,155 Equalization 292,090 292,090 226,907 65,183 Prosecutor 760,811 779,516 772,385 7,131 Victim rights 90,810 90,810 87,453 3,357 Purchasing 244,131 244,131 218,535 25,596 Victim impact panel 690 690 306 384 Survey & remonumentation 51,505 51,505 50,175 1,330 Treasurer 353,648 420,339 412,672 7,667 MSU cooperative extension service 147,299 147,299 141,512 5,787 Information systems 476,154 420,813 343,612 77,201 Maintenance 959,211 957,661 854,572 103,089 Courthouse security 126,683 126,683 122,528 4,155 Drain commissioner 96,077 96,077 94,917 1,160 Soil 4,000 4,000 4,000-0- Household hazardous waste 15,615 15,615 6,428 9,187 Total general government 8,493,103 8,923,713 8,416,552 507,161 Public safety Sheriff's department 2,259,818 2,274,042 2,164,315 109,727 Secondary road patrol grant 91,724 91,724 90,514 1,210 Howard Township police 65,784 65,784 47,419 18,365 Marcellus police 17,032 17,032 16,009 1,023 Sheriff's SMC security 26,720 26,720 20,054 6,666 COPS in school grant 25,229 26,179 26,106 73 Maintenance garage 40,000 40,000 30,679 9,321-44 -
General Fund BUDGETARY COMPARISON SCHEDULE - EXPENDITURES AND OTHER FINANCING USES (NON-GAAP BUDGETARY BASIS) - CONCLUDED Year Ended September 30, 2016 EXPENDITURES - CONTINUED Current - Concluded Public safety - Concluded Marine law enforcement 31,184 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) $ $ 31,184 $ 27,682 $ 3,502 Bullet proof vests 3,000 3,000 2,696 304 Snowmobile grant 2,389 2,389 1,189 1,200 Tether program 6,079 6,079 996 5,083 Marine lake patrol 2,153 2,283 2,277 6 SCAAP grant 3,000 3,000 163 2,837 Drunk driver jail reduction 8,675 8,675 396 8,279 Jail operation 2,432,933 2,479,933 2,458,073 21,860 Planning commission 4,449 4,449 1,243 3,206 Southwest Michigan Commission 10,981 10,981 10,981-0- Plat board 161 161-161 Emergency management 85,595 86,455 86,005 450 Animal shelter 355,739 355,739 327,737 28,002 Total public safety 5,472,645 5,535,809 5,314,534 221,275 Public works Department of Public Works 2,768 2,768 1,216 1,552 Health and welfare Health department 223,429 223,429 223,429-0- Mental health 195,000 195,000 195,000-0- Substance abuse 67,215 67,215 70,871 (3,656) Medical examiner 82,200 82,200 58,736 23,464 AAA assessment fee 5,400 5,400 5,400-0- Veteran's burial 19,000 19,000 14,694 4,306 Veteran's affairs office 44,519 46,549 45,692 857 Total health and welfare 636,763 638,793 613,822 24,971 Other 311,689 309,689 1,104 308,585 TOTAL EXPENDITURES 14,916,968 15,410,772 14,347,228 1,063,544 OTHER FINANCING USES Transfers out 1,035,001 1,089,948 1,089,948-0- TOTAL EXPENDITURES AND OTHER FINANCING USES $ 15,951,969 $ 16,500,720 $ 15,437,176 $ 1,063,544-45 -
Central Dispatch Fund BUDGETARY COMPARISON SCHEDULE Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) REVENUES Taxes $ 402,393 $ 402,393 $ 402,281 $ (112) Intergovernmental 190,000 190,000 198,451 8,451 Charges for services 600,000 600,000 664,249 64,249 Other revenue 900 900 935 35 TOTAL REVENUES 1,193,293 1,193,293 1,265,916 72,623 EXPENDITURES Current Public safety 1,003,105 1,003,105 922,706 80,399 Debt service Principal - 59,661 59,661-0- Interest - 12,977 12,977-0- TOTAL EXPENSES 1,003,105 1,075,743 995,344 80,399 EXCESS OF REVENUES OVER EXPENDITURES 190,188 117,550 270,572 153,022 OTHER FINANCING (USES) Transfers out (80,000) (80,000) (78,438) 1,562 NET CHANGE IN FUND BALANCE 110,188 37,550 192,134 154,584 Fund balance, beginning of year 1,938,773 1,938,773 1,938,773-0- Fund balance, end of year $ 2,048,961 $ 1,976,323 $ 2,130,907 $ 154,584-46 -
SCHEDULE OF CHANGES IN EMPLOYER S NET PENSION LIABILITY AND RELATED RATIOS Last Two Measurement Dates (Ultimately Ten Years will be Displayed) (Amounts were determined as of 12/31 of each fiscal year) 2014 2015 Total Pension Liability Service cost $ 742,456 $ 767,079 Interest 1,899,584 2,085,115 Changes of benefit terms - (43,484) Difference between expected and actual experience - 57,943 Changes of assumptions - 1,587,259 Benefit payments including employee refunds (1,117,473) (1,226,187) Other 34,218 1 Net Change in total pension liability 1,558,785 3,227,726 Total Pension Liability, beginning 23,944,889 25,503,674 Total Pension Liability, ending $ 25,503,674 $ 28,731,400 Plan Fiduciary Net Position Contributions-employer $ 629,127 $ 653,969 Contributions-employee 442,092 544,455 Net investment income 1,172,302 (298,627) Benefit payments including employee refunds (1,142,618) (1,226,187) Administrative expense (43,138) (43,061) Net change in plan fiduciary net position 1,057,765 (369,451) Plan Fiduciary Net Position, beginning 18,452,117 19,509,882 Plan Fiduciary Net Position, ending $ 19,509,882 $ 19,140,431 Employer Net Pension Liability $ 5,993,792 $ 9,590,969 Plan Fiduciary Net Position as a percentage of the Total Pension Liability 76% 67% Covered employee payroll $ 7,056,395 $ 7,286,277 Employer's Net Pension Liability as a percentage of covered employee payroll 85% 132% - 47 -
SCHEDULE OF EMPLOYER CONTRIBUTIONS Last Two Fiscal Years (Ultimately Ten Fiscal Years will be Displayed) (Amounts were determined as of 9/30 of each fiscal year) 2015 2016 Actuarially determined contributions $ 639,338 $ 725,410 Contributions in relation to the actuarially determined amount 639,338 725,410 Contribution excess (deficiency) $ -0- $ -0- Covered employee payroll $ 7,151,720 $ 7,375,078 Contributions as a percentage of covered employee payroll 9% 10% - 48 -
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION Year Ended September 30, 2016 NOTE A: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY BUDGETARY INFORMATION Annual budgets are adopted on a basis consistent with generally accepted accounting principles for the General and Special Revenue Funds, except as discussed in Note B below. All annual appropriations lapse at year-end. The legal level of budgetary control is at the activity level in the General Fund and at the functional level for the Special Revenue Funds. Management may make transfers of appropriations within activities for the general fund and within functions for other governmental funds. Transfers of appropriations between such respective activities or functions require the approval of the Board of Commissioners. The Board of Commissioners made several supplemental budgetary appropriations throughout the year that were considered material. The annual budgeting process begins in February of each year. Department heads are required to submit budget requests/recommendations to the County Administrator by early May. The County Administrator submits a proposed budget to the Board of Commissioners by early July. Following a public hearing, the Board of Commissioners has until September 30 to adopt the budget, although it normally targets mid-august for the adoption date. NOTE B: BUDGET/GAAP RECONCILIATION The County of Cass budgets the activities of the Social Welfare, Soldiers and Sailors Relief, Budget Stabilization, and Child Care Social Welfare funds separately from the General Fund. For financial reporting purposes and the GAAP-basis basic financial statements, however, the activities of the above mentioned funds are combined with the General Fund as required by GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. The budgetary perspective difference shown on the General Fund Budgetary Comparison Schedule (Non-GAAP budgetary basis) reconciles the change in fund balance to the GAAP basis basic financial statements and the details related to these amounts are as follows: Net Change in Fund Balance (Budgetary Basis) $ 446,916 Net change in fund balance related to: Soldiers' and Sailors' Relief 35 Social Welfare 6,285 Budget Stabilization 92 Child Care Social Welfare (31,844) Net actual change in fund balance (GAAP Basis) $ 421,484-49 -
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION - CONCLUDED Year Ended September 30, 2016 NOTE C: EXCESS OF EXPENDITURES OVER APPROPRIATIONS Amount Amounts Appropriated Expended Variance General Fund Health and welfare Substance abuse $ 67,215 $ 70,871 $ (3,656) - 50 -
OTHER SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds COMBINING BALANCE SHEET September 30, 2016 Special Marcellus Council Family Township on Aging Parks and Friend of Drug Court Community Millage Recreation the Court Implementation Policing ASSETS Cash and cash equivalents $ - $ 92,873 $ 184,287 $ 3,643 $ 26,154 Investments - - - - - Accounts receivable - 847 333 - - Due from other governmental units - - - 47,225 21,200 Prepaids - - - - - TOTAL ASSETS $ -0- $ 93,720 $ 184,620 $ 50,868 $ 47,354 LIABILITIES Accounts payable $ - $ 1,276 $ - $ 6,865 $ 184 Due to other funds - - - 44,000 - TOTAL LIABILITIES -0-1,276-0- 50,865 184 FUND BALANCES Nonspendable - - - - - Restricted - 92,444 184,620 3 47,170 Assigned - - - - - TOTAL FUND BALANCES -0-92,444 184,620 3 47,170 TOTAL LIABILITIES AND FUND BALANCES $ -0- $ 93,720 $ 184,620 $ 50,868 $ 47,354-51 -
Revenue Register Area Building Animal of Deeds Swine Strong Control Homeland Automation Agent Families Donation Security Grant $ 27,621 $ 9,746 $ 1,039 $ 106,544 $ 2,926 - - - 19,200-1,385 - - 858 - - - - - - 2,100 - - - 1,104 $ 31,106 $ 9,746 $ 1,039 $ 126,602 $ 4,030 $ - $ - $ - $ 687 $ - - - - - 1,243-0- -0- -0-687 1,243 2,100 - - - 1,104 29,006 9,746 1,039 22,746 1,683 - - - 103,169-31,106 9,746 1,039 125,915 2,787 $ 31,106 $ 9,746 $ 1,039 $ 126,602 $ 4,030-52 -
Nonmajor Governmental Funds COMBINING BALANCE SHEET - CONTINUED September 30, 2016 Special Concealed Sheriff's Sheriff's Corrections Pistol DARE Drug Non-Drug Officer Licensing Program Forfeiture Forfeiture Training ASSETS Cash and cash equivalents $ 21,106 $ 18,444 $ 203,260 $ 78,605 $ 53,747 Investments - 26,710-28,111 - Accounts receivable 674-424 - 4,824 Due from other governmental units - - - - - Prepaids - - - - - TOTAL ASSETS $ 21,780 $ 45,154 $ 203,684 $ 106,716 $ 58,571 LIABILITIES Accounts payable $ - $ - $ - $ - $ - Due to other funds - - - - - TOTAL LIABILITIES -0- -0- -0- -0- -0- FUND BALANCES Nonspendable - - - - - Restricted 21,780 45,154 203,684 106,716 58,571 Assigned - - - - - TOTAL FUND BALANCES 21,780 45,154 203,684 106,716 58,571 TOTAL LIABILITIES AND FUND BALANCES $ 21,780 $ 45,154 $ 203,684 $ 106,716 $ 58,571-53 -
Revenue Sheriff's Drug Justice Local Law Law Enforcement K9 Drug Traffic Training Enforcement Library Team Fund Enforcement Grant Block Grant $ 3,170 $ 1,092,517 $ 33,046 $ 26,820 $ 12,014 $ 3,788 - - - - - - - 773 - - - - - - - - - - - 6,050 - - - - $ 3,170 $ 1,099,340 $ 33,046 $ 26,820 $ 12,014 $ 3,788 $ 302 $ 89,244 $ 395 $ 189 $ - $ - - - - - - - 302 89,244 395 189-0- -0- - 6,050 - - - - 2,868 1,004,046 32,651 26,631 12,014 3,788 - - - - - - 2,868 1,010,096 32,651 26,631 12,014 3,788 $ 3,170 $ 1,099,340 $ 33,046 $ 26,820 $ 12,014 $ 3,788-54 -
Nonmajor Governmental Funds COMBINING BALANCE SHEET - CONCLUDED September 30, 2016 Special Community Policing Community Community Scholarship Development Corrections Veteran's Historical Golf Block Grant Grant Trust Commission ASSETS Cash and cash equivalents $ 4,771 $ 78,782 $ 15,778 $ 1,521 $ 16,082 Investments - - - - - Accounts receivable - - - - - Due from other governmental units - - 6,591 - - Prepaids - - - - - TOTAL ASSETS $ 4,771 $ 78,782 $ 22,369 $ 1,521 $ 16,082 LIABILITIES Accounts payable $ - $ - $ 1,994 $ - $ 465 Due to other funds - - 18,985 - - TOTAL LIABILITIES -0- -0-20,979-0- 465 FUND BALANCES Nonspendable - - - - - Restricted 4,771 78,782 1,390 1,521 15,617 Assigned - - - - - TOTAL FUND BALANCES 4,771 78,782 1,390 1,521 15,617 TOTAL LIABILITIES AND FUND BALANCES $ 4,771 $ 78,782 $ 22,369 $ 1,521 $ 16,082-55 -
Revenue Capital Projects Debt Service Building Authority Law and Tribal Child Public E-911 Courts Casino Care Improvement Building Building Total $ 3,193 $ 120,776 $ 432,271 $ 3,045 $ - $ 2,677,569 - - - - - 74,021 - - - - - 10,118-27,057 - - - 102,073 - - - - - 9,254 $ 3,193 $ 147,833 $ 432,271 $ 3,045 $ -0- $ 2,873,035 $ - $ 10,985 $ 12,652 $ - $ - $ 125,238 - - - - - 64,228-0- 10,985 12,652-0- -0-189,466 - - - - - 9,254 3,193 136,848-3,045-2,151,527 - - 419,619 - - 522,788 3,193 136,848 419,619 3,045-0- 2,683,569 $ 3,193 $ 147,833 $ 432,271 $ 3,045 $ -0- $ 2,873,035-56 -
Nonmajor Governmental Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Year Ended September 30, 2016 Special Marcellus Council Family Township on Aging Parks and Friend of Drug Court Community Millage Recreation the Court Implementation Policing REVENUES Taxes $ 1,795,622 $ - $ - $ - $ - Intergovernmental - 2,500-148,937 81,951 Licenses and permits - - - - - Fines and forfeitures - - - - - Charges for services - 79,137 34,351 - - Interest and rents - - 81 - - Contributions - - - - - Other revenue/reimbursements - 4,609 35,101 - - TOTAL REVENUES 1,795,622 86,246 69,533 148,937 81,951 EXPENDITURES Current General government - - - 148,937 - Public safety - - - - 78,866 Health and welfare 1,795,622 - - - - Recreation and cultural - 158,549 - - - Debt service Principal - - - - - Interest - - - - - Capital outlay - - - - - TOTAL EXPENDITURES 1,795,622 158,549-0- 148,937 78,866 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES -0- (72,303) 69,533-0- 3,085 OTHER FINANCING SOURCES (USES) Transfers in - 100,000 - - - Transfers out - - (28,000) - - TOTAL OTHER FINANCING SOURCES (USES) -0-100,000 (28,000) -0- -0- NET CHANGE IN FUND BALANCES -0-27,697 41,533-0- 3,085 Fund balances, beginning of year - 64,747 143,087 3 44,085 Fund balances, end of year $ -0- $ 92,444 $ 184,620 $ 3 $ 47,170-57 -
Revenue Register Area Building Animal of Deeds Swine Strong Control Homeland Automation Agent Families Donation Security Grant $ - $ - $ - $ - $ - - - - - 30,691 - - - - - - - - 3,586-53,400 - - - - 17 - - 116 - - - - 22,623 - - - - - - 53,417-0- -0-26,325 30,691 29,764 - - - - - - - 4,609 28,962 - - - - - - - - - - - - - - - - - - - - - - - - - 29,764-0- -0-4,609 28,962 23,653-0- -0-21,716 1,729 - - - - - (32,840) - - - - (32,840) -0- -0- -0- -0- (9,187) -0- -0-21,716 1,729 40,293 9,746 1,039 104,199 1,058 $ 31,106 $ 9,746 $ 1,039 $ 125,915 $ 2,787-58 -
Nonmajor Governmental Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - CONTINUED Year Ended September 30, 2016 Special Concealed Sheriff's Sheriff's Corrections Pistol DARE Drug Non-Drug Officer Licensing Program Forfeiture Forfeiture Training REVENUES Taxes $ - $ - $ - $ - $ - Intergovernmental - - - - - Licenses and permits 32,460 - - - - Fines and forfeitures - - 6,822 2,858 - Charges for services - - - - 17,188 Interest and rents - 98 152 - - Contributions - 1,000 - - - Other revenue/reimbursements - - - 53,756 - TOTAL REVENUES 32,460 1,098 6,974 56,614 17,188 EXPENDITURES Current General government - - - - - Public safety 20,253 2,348 2,280 15,343 8,271 Health and welfare - - - - - Recreation and cultural - - - - - Debt service Principal - - - - - Interest - - - - - Capital outlay - - - 5,090 - TOTAL EXPENDITURES 20,253 2,348 2,280 20,433 8,271 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 12,207 (1,250) 4,694 36,181 8,917 OTHER FINANCING SOURCES (USES) Transfers in - - 20,000 - - Transfers out - - (37,000) - - TOTAL OTHER FINANCING SOURCES (USES) -0- -0- (17,000) -0- -0- NET CHANGE IN FUND BALANCES 12,207 (1,250) (12,306) 36,181 8,917 Fund balances, beginning of year 9,573 46,404 215,990 70,535 49,654 Fund balances, end of year $ 21,780 $ 45,154 $ 203,684 $ 106,716 $ 58,571-59 -
Revenue Sheriff's Drug Justice Local Law Law Enforcement K9 Drug Traffic Training Enforcement Library Team Fund Enforcement Grant Block Grant $ - $ 966,681 $ - $ - $ - $ - - 5,875-2,657 3,398 - - - - - - - 4,500 5,070 - - - - - - - - - - - 301 13 - - - - - - - - - - 935 30,000 9,926 - - 4,500 978,862 30,013 12,583 3,398-0- 12,802 - - - - - - 921,072-11,147 7,071 - - - - - - - - - - - - - - - 34,362 - - - - - - - - - - - - - - - 12,802 921,072 34,362 11,147 7,071-0- (8,302) 57,790 (4,349) 1,436 (3,673) -0-500 - 37,000 15,000 - - - (20,000) - - - - 500 (20,000) 37,000 15,000-0- -0- (7,802) 37,790 32,651 16,436 (3,673) -0-10,670 972,306-10,195 15,687 3,788 $ 2,868 $ 1,010,096 $ 32,651 $ 26,631 $ 12,014 $ 3,788-60 -
Nonmajor Governmental Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - CONCLUDED Year Ended September 30, 2016 Special Community Policing Community Community Scholarship Development Corrections Veteran's Historical Golf Block Grant Grant Trust Commission REVENUES Taxes $ - $ - $ - $ - $ - Intergovernmental - 11,079 75,545 4,220 - Licenses and permits - - - - - Fines and forfeitures - - - - - Charges for services - - - - 3,155 Interest and rents 7 - - - - Contributions - - - - - Other revenue/reimbursements - - - - - TOTAL REVENUES 7 11,079 75,545 4,220 3,155 EXPENDITURES Current General government - - - - - Public safety 21,999-79,058 - - Health and welfare - - - 7,627 - Recreation and cultural - - - - 7,486 Debt service Principal - - - - - Interest - - - - - Capital outlay - - - - - TOTAL EXPENDITURES 21,999-0- 79,058 7,627 7,486 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (21,992) 11,079 (3,513) (3,407) (4,331) OTHER FINANCING SOURCES (USES) Transfers in - - 4,000-9,000 Transfers out - - - - - TOTAL OTHER FINANCING SOURCES (USES) -0- -0-4,000-0- 9,000 NET CHANGE IN FUND BALANCES (21,992) 11,079 487 (3,407) 4,669 Fund balances, beginning of year 26,763 67,703 903 4,928 10,948 Fund balances, end of year $ 4,771 $ 78,782 $ 1,390 $ 1,521 $ 15,617-61 -
Revenue Capital Projects Debt Service Building Authority Law and Tribal Child Public E-911 Courts Casino Care Improvement Building Building Total $ - $ - $ - $ - $ - $ 2,762,303 29,977 314,117 - - - 710,947 - - - - - 32,460 - - - - - 22,836-24,387 - - - 211,618 - - - - - 785 - - - - - 23,623-935 - - - 135,262 29,977 339,439-0- -0- -0-3,899,834 25,000 - - - - 216,503 - - - - - 1,201,279-594,428 - - - 2,397,677 - - - - - 166,035 - - - 50,000 235,000 319,362 - - - 28,438 73,800 102,238 - - 708,361 - - 713,451 25,000 594,428 708,361 78,438 308,800 5,116,545 4,977 (254,989) (708,361) (78,438) (308,800) (1,216,711) - 259,000 550,448 78,438 308,800 1,382,186 (18,225) - - - - (136,065) (18,225) 259,000 550,448 78,438 308,800 1,246,121 (13,248) 4,011 (157,913) -0- -0-29,410 16,441 132,837 577,532 3,045-2,654,159 $ 3,193 $ 136,848 $ 419,619 $ 3,045 $ -0- $ 2,683,569-62 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Council on Aging Millage REVENUES Taxes $ 1,815,734 $ 1,815,734 $ 1,795,622 $ (20,112) EXPENDITURES Current Health and welfare 1,815,734 1,815,734 1,795,622 20,112 NET CHANGE IN FUND BALANCE -0- -0- -0- -0- Fund balance, beginning of year - - - -0- Fund balance, end of year $ -0- $ -0- $ -0- $ -0- Parks and Recreation REVENUES Intergovernmental $ - $ 21,904 $ 2,500 $ (19,404) Charges for services 45,000 45,000 79,137 34,137 Other 20,000 20,000 4,609 (15,391) TOTAL REVENUES 65,000 86,904 86,246 (658) EXPENDITURES Current Recreation and culture 177,700 207,300 158,549 48,751 EXCESS OF REVENUES (UNDER) EXPENDITURES (112,700) (120,396) (72,303) 48,093 OTHER FINANCING SOURCES Transfers in 112,699 112,699 100,000 (12,699) NET CHANGE IN FUND BALANCE (1) (7,697) 27,697 35,394 Fund balance, beginning of year 87,295 64,747 64,747-0- Fund balance, end of year $ 87,294 $ 57,050 $ 92,444 $ 35,394-63 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Friend of the Court REVENUES Charges for services $ 30,000 $ 30,000 $ 34,351 $ 4,351 Interest and rents 30 30 81 51 Other 500 8,500 35,101 26,601 TOTAL REVENUES 30,530 38,530 69,533 31,003 EXPENDITURES - - - -0- EXCESS OF REVENUES OVER EXPENDITURES 30,530 38,530 69,533 31,003 OTHER FINANCING (USES) Transfers out (20,000) (28,000) (28,000) -0- NET CHANGE IN FUND BALANCE 10,530 10,530 41,533 31,003 Fund balance, beginning of year 143,087 143,087 143,087-0- Fund balance, end of year $ 153,617 $ 153,617 $ 184,620 $ 31,003 Family Drug Court Implementation REVENUES Intergovernmental $ 165,000 $ 235,000 $ 148,937 $ (86,063) EXPENDITURES Current General government 165,000 235,000 148,937 86,063 NET CHANGE IN FUND BALANCE -0- -0- -0- -0- Fund balance, beginning of year 3 3 3-0- Fund balance, end of year $ 3 $ 3 $ 3 $ -0- - 64 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Marcellus Township Community Policing REVENUES Intergovernmental $ 91,521 $ 91,521 $ 81,951 $ (9,570) EXPENDITURES Current Public safety 90,659 90,659 78,866 11,793 NET CHANGE IN FUND BALANCE 862 862 3,085 2,223 Fund balance, beginning of year 44,085 44,085 44,085-0- Fund balance, end of year $ 44,947 $ 44,947 $ 47,170 $ 2,223 Register of Deeds Automation REVENUES Charges for services $ 50,000 $ 50,000 $ 53,400 $ 3,400 Interest and rents 18 18 17 (1) TOTAL REVENUES 50,018 50,018 53,417 3,399 EXPENDITURES Current General government 55,000 55,000 29,764 25,236 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (4,982) (4,982) 23,653 28,635 OTHER FINANCING (USES) Transfers out (32,840) (32,840) (32,840) -0- NET CHANGE IN FUND BALANCE (37,822) (37,822) (9,187) 28,635 Fund balance, beginning of year 40,293 40,293 40,293-0- Fund balance, end of year $ 2,471 $ 2,471 $ 31,106 $ 28,635-65 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Area Swine Agent REVENUES $ - $ - $ - $ -0- EXPENDITURES - - - -0- NET CHANGE IN FUND BALANCE -0- -0- -0- -0- Fund balance, beginning of year 9,746 9,746 9,746-0- Fund balance, end of year $ 9,746 $ 9,746 $ 9,746 $ -0- Building Strong Families REVENUES $ - $ - $ - $ -0- EXPENDITURES - - - -0- NET CHANGE IN FUND BALANCE -0- -0- -0- -0- Fund balance, beginning of year 1,039 1,039 1,039-0- Fund balance, end of year $ 1,039 $ 1,039 $ 1,039 $ -0- Animal Control Donation REVENUES Fines and forfeitures $ 2,000 $ 2,000 $ 3,586 $ 1,586 Interest and rents 100 100 116 16 Contributions 15,000 15,000 22,623 7,623 TOTAL REVENUES 17,100 17,100 26,325 9,225 EXPENDITURES Current Public safety 11,500 11,500 4,609 6,891 NET CHANGE IN FUND BALANCE 5,600 5,600 21,716 16,116 Fund balance, beginning of year 104,199 104,199 104,199-0- Fund balance, end of year $ 109,799 $ 109,799 $ 125,915 $ 16,116-66 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Homeland Security Grant REVENUES Intergovernmental $ 10,000 $ 29,000 $ 30,691 $ 1,691 EXPENDITURES Current Public safety 10,000 29,000 28,962 38 NET CHANGE IN FUND BALANCE -0- -0-1,729 1,729 Fund balance, beginning of year 1,058 1,058 1,058-0- Fund balance, end of year $ 1,058 $ 1,058 $ 2,787 $ 1,729 Concealed Pistol Licensing REVENUES Licenses and permits $ 15,000 $ 23,800 $ 32,460 $ 8,660 EXPENDITURES Current Public safety - 23,800 20,253 3,547 NET CHANGE IN FUND BALANCE 15,000-0- 12,207 12,207 Fund balance, beginning of year 9,573 9,573 9,573-0- Fund balance, end of year $ 24,573 $ 9,573 $ 21,780 $ 12,207-67 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) DARE Program REVENUES Interest and rents $ - $ - $ 98 $ 98 Contributions 1,000 1,000 1,000-0- TOTAL REVENUES 1,000 1,000 1,098 98 EXPENDITURES Current Public safety 2,500 2,500 2,348 152 NET CHANGE IN FUND BALANCE (1,500) (1,500) (1,250) 250 Fund balance, beginning of year 46,404 46,404 46,404-0- Fund balance, end of year $ 44,904 $ 44,904 $ 45,154 $ 250 Sheriff's Drug Forfeiture REVENUES Fines and forfeitures $ - $ - $ 6,822 $ 6,822 Interest and rents - - 152 152 TOTAL REVENUES -0- -0-6,974 6,974 EXPENDITURES Current Public safety 7,806 7,806 2,280 5,526 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (7,806) (7,806) 4,694 12,500 OTHER FINANCING SOURCES (USES) Transfers in 20,000 20,000 20,000-0- Transfers out - (37,000) (37,000) -0- TOTAL OTHER FINANCING SOURCES (USES) 20,000 (17,000) (17,000) -0- NET CHANGE IN FUND BALANCE 12,194 (24,806) (12,306) 12,500 Fund balance, beginning of year 215,990 215,990 215,990-0- Fund balance, end of year $ 228,184 $ 191,184 $ 203,684 $ 12,500-68 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Sheriff's Non-Drug Forfeiture REVENUES Intergovernmental $ 2,000 $ 2,000 $ - $ (2,000) Fines and forfeitures 2,000 2,000 2,858 858 Other - 40,000 53,756 13,756 TOTAL REVENUES 4,000 44,000 56,614 12,614 EXPENDITURES Current Public safety 4,000 15,235 15,343 (108) Capital outlay 4,000 45,100 5,090 40,010 TOTAL EXPENDITURES 8,000 60,335 20,433 39,902 NET CHANGE IN FUND BALANCE (4,000) (16,335) 36,181 52,516 Fund balance, beginning of year 70,535 70,535 70,535-0- Fund balance, end of year $ 66,535 $ 54,200 $ 106,716 $ 52,516 Corrections Officer Training REVENUES Charges for services $ 12,000 $ 12,000 $ 17,188 $ 5,188 EXPENDITURES Current Public safety 9,500 9,500 8,271 1,229 NET CHANGE IN FUND BALANCE 2,500 2,500 8,917 6,417 Fund balance, beginning of year 49,654 49,654 49,654-0- Fund balance, end of year $ 52,154 $ 52,154 $ 58,571 $ 6,417-69 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Law Library REVENUES Fines and forfeitures $ 4,500 $ 4,500 $ 4,500 $ -0- EXPENDITURES General government 13,000 13,000 12,802 198 EXCESS OF REVENUES (UNDER) EXPENDITURES (8,500) (8,500) (8,302) 198 OTHER FINANCING SOURCES Transfers in 500 500 500-0- NET CHANGE IN FUND BALANCE (8,000) (8,000) (7,802) 198 Fund balance, beginning of year 10,670 10,670 10,670-0- Fund balance, end of year $ 2,670 $ 2,670 $ 2,868 $ 198 Drug Enforcement Team REVENUES Taxes $ 966,657 $ 966,657 $ 966,681 $ 24 Intergovernmental - - 5,875 5,875 Fines and forfeitures 20,000 20,000 5,070 (14,930) Interest and rents 175 175 301 126 Other 900 900 935 35 TOTAL REVENUES 987,732 987,732 978,862 (8,870) EXPENDITURES Current Public safety 950,368 950,368 921,072 29,296 EXCESS OF REVENUES OVER EXPENDITURES 37,364 37,364 57,790 20,426 OTHER FINANCING (USES) Transfers out (20,000) (20,000) (20,000) -0- NET CHANGE IN FUND BALANCE 17,364 17,364 37,790 20,426 Fund balance, beginning of year 972,306 972,306 972,306-0- Fund balance, end of year $ 989,670 $ 989,670 $ 1,010,096 $ 20,426-70 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) K9 Drug Fund REVENUES Interest and rents $ - $ - $ 13 $ 13 Other - 30,000 30,000 - TOTAL REVENUES -0-30,000 30,013 13 EXPENDITURES Current Public safety - 49,850 34,362 15,488 EXCESS OF REVENUES (UNDER) EXPENDITURES -0- (19,850) (4,349) 15,501 OTHER FINANCING SOURCES Transfers in - 37,000 37,000-0- NET CHANGE IN FUND BALANCE -0-17,150 32,651 15,501 Fund balance, beginning of year - - - -0- Fund balance, end of year $ -0- $ 17,150 $ 32,651 $ 15,501 Traffic Enforcement REVENUES Intergovernmental $ 5,000 $ 5,000 $ 2,657 $ (2,343) Other Revenue - - 9,926 9,926 TOTAL REVENUES 5,000 5,000 12,583 7,583 EXPENDITURES Current Public safety 17,965 17,965 11,147 6,818 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (12,965) (12,965) 1,436 14,401 OTHER FINANCING SOURCES Transfers in 15,000 15,000 15,000-0- NET CHANGE IN FUND BALANCE 2,035 2,035 16,436 14,401 Fund balance, beginning of year 10,195 10,195 10,195-0- Fund balance, end of year $ 12,230 $ 12,230 $ 26,631 $ 14,401-71 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Sheriff's Justice Training Grant REVENUES Intergovernmental $ 6,450 $ 6,450 $ 3,398 $ (3,052) EXPENDITURES Current Public safety 6,300 7,300 7,071 229 NET CHANGE IN FUND BALANCE 150 (850) (3,673) (2,823) Fund balance, beginning of year 15,687 15,687 15,687-0- Fund balance, end of year $ 15,837 $ 14,837 $ 12,014 $ (2,823) Local Law Enforcement Block Grant REVENUES $ - $ - $ - $ -0- EXPENDITURES - - - -0- NET CHANGE IN FUND BALANCE -0- -0- -0- -0- Fund balance, beginning of year 3,788 3,788 3,788-0- Fund balance, end of year $ 3,788 $ 3,788 $ 3,788 $ -0- Community Policing Scholarship Golf REVENUES Interest and rents $ - $ - $ 7 $ 7 EXPENDITURES Current Public safety 4,500 24,500 21,999 2,501 NET CHANGE IN FUND BALANCE (4,500) (24,500) (21,992) 2,508 Fund balance, beginning of year 26,763 26,763 26,763-0- Fund balance, end of year $ 22,263 $ 2,263 $ 4,771 $ 2,508-72 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Community Development Block Grant REVENUES Intergovernmental $ 100,000 $ 100,000 $ 11,079 $ (88,921) EXPENDITURES Current Health and welfare 100,000 100,000-100,000 NET CHANGE IN FUND BALANCE -0- -0-11,079 11,079 Fund balance, beginning of year 67,703 67,703 67,703-0- Fund balance, end of year $ 67,703 $ 67,703 $ 78,782 $ 11,079 Community Corrections Grant REVENUES Intergovernmental $ 75,545 $ 75,545 $ 75,545 $ -0- EXPENDITURES Current Public safety 75,545 79,545 79,058 487 EXCESS OF REVENUES (UNDER) EXPENDITURES -0- (4,000) (3,513) 487 OTHER FINANCING SOURCES Transfers in - 4,000 4,000-0- NET CHANGE IN FUND BALANCE -0- -0-487 487 Fund balance, beginning of year 903 903 903-0- Fund balance, end of year $ 903 $ 903 $ 1,390 $ 487-73 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Veteran's Trust REVENUES Intergovernmental $ 50,000 $ 50,000 $ 4,220 $ (45,780) EXPENDITURES Current Health and welfare 50,000 50,000 7,627 42,373 NET CHANGE IN FUND BALANCE -0- -0- (3,407) (3,407) Fund balance, beginning of year 4,928 4,928 4,928-0- Fund balance, end of year $ 4,928 $ 4,928 $ 1,521 $ (3,407) Historical Commission REVENUES Charges for services $ 2,500 $ 2,500 $ 3,155 $ 655 EXPENDITURES Current Recreation and cultural 11,500 11,500 7,486 4,014 EXCESS OF REVENUES (UNDER) EXPENDITURES (9,000) (9,000) (4,331) 4,669 OTHER FINANCING SOURCES Transfers in 9,000 9,000 9,000-0- NET CHANGE IN FUND BALANCE -0- -0-4,669 4,669 Fund balance, beginning of year 10,948 10,948 10,948-0- Fund balance, end of year $ 10,948 $ 10,948 $ 15,617 $ 4,669-74 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Tribal Casino REVENUES Intergovernmental $ 30,000 $ 30,000 $ 29,977 $ (23) EXPENDITURES Other expenditures - 25,000 25,000-0- EXCESS OF REVENUES OVER EXPENDITURES 30,000 5,000 4,977 (23) OTHER FINANCING (USES) Transfers out (30,000) (23,225) (18,225) 5,000 NET CHANGE IN FUND BALANCE -0- (18,225) (13,248) 4,977 Fund balance, beginning of year 16,441 16,441 16,441-0- Fund balance, end of year $ 16,441 $ (1,784) $ 3,193 $ 4,977 Child Care REVENUES Intergovernmental $ 270,000 $ 283,000 $ 314,117 $ 31,117 Charges for services 15,000 15,000 24,387 9,387 Other 900 900 935 35 TOTAL REVENUES 285,900 298,900 339,439 40,539 EXPENDITURES Current Health and welfare 581,810 594,810 594,428 382 EXCESS OF REVENUES (UNDER) EXPENDITURES (295,910) (295,910) (254,989) 40,921 OTHER FINANCING SOURCES Transfers in 259,000 259,000 259,000-0- NET CHANGE IN FUND BALANCE (36,910) (36,910) 4,011 40,921 Fund balance, beginning of year 132,837 132,837 132,837-0- Fund balance, end of year $ 95,927 $ 95,927 $ 136,848 $ 40,921-75 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONTINUED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Budget Stabilization REVENUES Interest and rents $ - $ - $ 92 $ 92 EXPENDITURES - - - -0- EXCESS OF REVENUES OVER EXPENDITURES -0- -0-92 92 OTHER FINANCING SOURCES Transfers out (535,927) (535,927) - 535,927 NET CHANGE IN FUND BALANCE (535,927) (535,927) 92 536,019 Fund balance, beginning of year 535,981 535,981 535,981-0- Fund balance, end of year $ 54 $ 54 $ 536,073 $ 536,019 Social Welfare REVENUES Other $ - $ 1,110 $ 9,785 $ 8,675 EXPENDITURES Current Health and welfare 8,000 12,710 11,500 1,210 EXCESS OF REVENUES (UNDER) EXPENDITURES (8,000) (11,600) (1,715) 9,885 OTHER FINANCING SOURCES Transfers in 8,000 8,000 8,000 - NET CHANGE IN FUND BALANCE -0- (3,600) 6,285 9,885 Fund balance, beginning of year 9,046 9,046 9,046-0- Fund balance, end of year $ 9,046 $ 5,446 $ 15,331 $ 9,885-76 -
Nonmajor Governmental Funds SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BY FUND - BUDGET AND ACTUAL - CONCLUDED Year Ended September 30, 2016 Variance with Budgeted Amounts Final Budget Positive Original Final Actual (Negative) Soldier's and Sailor's Relief REVENUES $ - $ - $ - $ -0- EXPENDITURES Current Health and welfare 2,000 2,000 1,965 35 EXCESS OF REVENUES (UNDER) EXPENDITURES (2,000) (2,000) (1,965) 35 OTHER FINANCING SOURCES Transfers in 2,000 2,000 2,000-0- NET CHANGE IN FUND BALANCE -0- -0-35 35 Fund balance, beginning of year 4,613 4,613 4,613-0- Fund balance, end of year $ 4,613 $ 4,613 $ 4,648 $ 35 Child Care Social Welfare REVENUES Intergovernmental $ 257,000 $ 257,000 $ 163,671 $ (93,329) EXPENDITURES Current Health and welfare 449,000 449,000 337,515 111,485 EXCESS OF REVENUES (UNDER) EXPENDITURES (192,000) (192,000) (173,844) 18,156 OTHER FINANCING SOURCES Transfers in 142,000 142,000 142,000-0- NET CHANGE IN FUND BALANCE (50,000) (50,000) (31,844) 18,156 Fund balance, beginning of year 226,816 226,816 226,816-0- Fund balance, end of year $ 176,816 $ 176,816 $ 194,972 $ 18,156-77 -
Internal Service Funds COMBINING STATEMENT OF NET POSITION September 30, 2016 ASSETS Current assets Office Equipment Motor Computer Self- Pool Pool Insurance Cash and cash equivalents $ 284,221 $ 230,828 $ 316,336 Accounts receivable - - 35,618 Due from other governmental units - - 77,914 Total current assets 284,221 230,828 429,868 Noncurrent assets Restricted cash and cash equivalents - - - Capital assets being depreciated, net 214,053 8,292 - Total noncurrent assets 214,053 8,292-0- TOTAL ASSETS 498,274 239,120 429,868 LIABILITIES Current liabilities Accounts payable - - 384 Due to other governmental units - - 16,258 Due to other funds - - 400,000 TOTAL LIABILITIES -0- -0-416,642 NET POSITION Invested in capital assets 214,053 8,292 - Restricted - - - Unrestricted 284,221 230,828 13,226 TOTAL NET POSITION $ 498,274 $ 239,120 $ 13,226-78 -
Self- Insurance Fitness MMRMA Center Total $ - $ 9,928 $ 841,313 - - 35,618 - - 77,914-0- 9,928 954,845 283,309-283,309 - - 222,345 283,309-0- 505,654 283,309 9,928 1,460,499 - - 384 - - 16,258 - - 400,000-0- -0-416,642 - - 222,345 283,309-283,309-9,928 538,203 $ 283,309 $ 9,928 $ 1,043,857-79 -
Internal Service Funds COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Year Ended September 30, 2016 Office Equipment Motor Computer Self- Pool Pool Insurance OPERATING REVENUE Charges for services $ 121,068 $ 3,078 $ 3,400,579 OPERATING EXPENSES Cost of services - - 3,584,527 Depreciation 122,141 1,539 - TOTAL OPERATING EXPENSES 122,141 1,539 3,584,527 OPERATING INCOME (LOSS) (1,073) 1,539 (183,948) NONOPERATING REVENUES Gain on disposal of capital assets 500 - - Interest earned on investments - - 171 TOTAL NONOPERATING REVENUES 500-0- 171 NET INCOME (LOSS) BEFORE TRANSFERS (573) 1,539 (183,777) TRANSFERS Transfers in - - - CHANGE IN NET POSITION (573) 1,539 (183,777) Net position, beginning of year 498,847 237,581 197,003 Net position, end of year $ 498,274 $ 239,120 $ 13,226-80 -
Self- Insurance Fitness MMRMA Center Total $ 57,551 $ 5,400 $ 3,587,676 145,286 6,900 3,736,713 - - 123,680 145,286 6,900 3,860,393 (87,735) (1,500) (272,717) - - 500 8,690-8,861 8,690-0- 9,361 (79,045) (1,500) (263,356) - 500 500 (79,045) (1,000) (262,856) 362,354 10,928 1,306,713 $ 283,309 $ 9,928 $ 1,043,857-81 -
Internal Service Funds COMBINING STATEMENT OF CASH FLOWS Year Ended September 30, 2016 Office Equipment Motor Computer Self- Pool Pool Insurance CASH FLOW FROM OPERATING ACTIVITIES Cash received for internal services $ 121,068 $ 3,078 $ 3,301,719 Cash payments to suppliers for goods and services - - (3,608,559) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 121,068 3,078 (306,840) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Purchase of capital assets (134,987) - - Proceeds from the sale of capital assets 500 - - NET CASH (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES (134,487) -0- -0- CASH FLOWS FOR NONCAPITAL FINANCING ACTIVITIES Transfers in - - - CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings - - 171 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (13,419) 3,078 (306,669) Cash and cash equivalents, beginning of year 297,640 227,750 623,005 Cash and cash equivalents, end of year $ 284,221 $ 230,828 $ 316,336 CASH FLOWS FROM OPERATING ACTIVITIES Operating income (loss) $ (1,073) $ 1,539 $ (183,948) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation expense 122,141 1,539 - (Increase) decrease in: Accounts receivable - - (29,804) Due from other governmental units - - (69,056) Prepaid expenses - - 105,121 Increase (decrease) in: Accounts payable - - (139,018) Due to other governmental units - - 9,865 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES $ 121,068 $ 3,078 $ (306,840) - 82 -
Self- Insurance Fitness MMRMA Center Total $ 57,551 $ 5,400 $ 3,488,816 (145,286) (6,900) (3,760,745) (87,735) (1,500) (271,929) - - (134,987) - - 500-0- -0- (134,487) - 500 500 8,690-8,861 (79,045) (1,000) (397,055) 362,354 10,928 1,521,677 $ 283,309 $ 9,928 $ 1,124,622 $ (87,735) $ (1,500) $ (272,717) - - 123,680 - - (29,804) - - (69,056) - - 105,121 - - (139,018) - - 9,865 $ (87,735) $ (1,500) $ (271,929) - 83 -
Agency Funds COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES September 30, 2016 Library Trust and Penal District Agency Fines Court ASSETS Cash and cash equivalents $ 5,179,377 $ 48,519 $ 134,897 LIABILITIES Undistributed taxes $ 4,866,050 $ - $ - Other undistributed receipts 313,327 48,519 134,897 TOTAL LIABILITIES $ 5,179,377 $ 48,519 $ 134,897-84 -
Inmate Payroll Trust Clearing Total $ 40,820 $ 175,566 $ 5,579,179 $ - $ - $ 4,866,050 40,820 175,566 713,129 $ 40,820 $ 175,566 $ 5,579,179-85 -
Agency Funds STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Year Ended September 30, 2016 Balance Balance Oct. 1, 2015 Additions Deductions Sept. 30, 2016 Trust and Agency ASSETS Cash and cash equivalents $ 3,411,784 $ 27,038,830 $ 25,271,237 $ 5,179,377 LIABILITIES Undistributed tax collections $ 3,125,781 $ 14,586,033 $ 12,845,764 $ 4,866,050 Other undistributed receipts 286,003 12,452,797 12,425,473 313,327 TOTAL LIABILITIES $ 3,411,784 $ 27,038,830 $ 25,271,237 $ 5,179,377 Library Penal Fines ASSETS Cash and cash equivalents $ 45,221 $ 519,527 $ 516,229 $ 48,519 LIABILITIES Other undistributed receipts $ 45,221 $ 519,527 $ 516,229 $ 48,519 District Court ASSETS Cash and cash equivalents $ 112,126 $ 1,488,468 $ 1,465,697 $ 134,897 LIABILITIES Other undistributed receipts $ 112,126 $ 1,488,468 $ 1,465,697 $ 134,897 Inmate Trust ASSETS Cash and cash equivalents $ 19,717 $ 293,721 $ 272,618 $ 40,820 LIABILITIES Other undistributed receipts $ 19,717 $ 293,721 $ 272,618 $ 40,820 Payroll Clearing Fund ASSETS Cash and cash equivalents $ - $ 175,566 $ - $ 175,566 LIABILITIES Other undistributed receipts $ - $ 175,566 $ - $ 175,566-86 -
Agency Funds STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - CONCLUDED Year Ended September 30, 2016 Balance Balance Oct. 1, 2015 Additions Deductions Sept. 30, 2016 Total ASSETS Cash and cash equivalents $ 3,588,848 $ 29,516,112 $ 27,525,781 $ 5,579,179 LIABILITIES Undistributed tax collections $ 3,125,781 $ 14,586,033 $ 12,845,764 $ 4,866,050 Other undistributed receipts 463,067 14,930,079 14,680,017 713,129 TOTAL LIABILITIES $ 3,588,848 $ 29,516,112 $ 27,525,781 $ 5,579,179-87 -
Component Unit Funds GOVERNMENTAL FUNDS BALANCE SHEET AND STATEMENT OF NET POSITION - DRAIN COMMISSION September 30, 2016 Capital Projects Drain Lake Drain Revolving Level ASSETS Cash and cash equivalents $ 69,141 $ 14,179 $ 59,613 Capital assets being depreciated, net - - - TOTAL ASSETS $ 69,141 $ 14,179 $ 59,613 LIABILITIES AND FUND BALANCES LIABILITIES Accounts payable $ 11,945 $ - $ 2,926 FUND BALANCES Restricted for capital projects 57,196 14,179 56,687 TOTAL LIABILITIES AND FUND BALANCES $ 69,141 $ 14,179 $ 59,613 NET POSITION Invested in capital assets Restricted for capital projects TOTAL NET POSITION - 88 -
Statement of Total Adjustments Net Position $ 142,933 $ - $ 142,933-987,001 987,001 $ - 142,933 $ 987,001 1,129,934 $ 14,871 $ - 14,871 128,062 (128,062) - $ 142,933 $ (128,062) $ 987,001 987,001 128,062 128,062 $ 1,115,063 $ 1,115,063-89 -
Component Unit Funds RECONCILIATION OF THE COMBINING BALANCE SHEET TO THE STATEMENT OF NET POSITION - DRAIN COMMISSION September 30, 2016 Fund balances - total component unit funds $ 128,062 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources, and therefore not reported in the funds. The cost of capital assets is $ 1,415,280 Accumulated depreciation is (428,279) 987,001 Net position of governmental activities $ 1,115,063-90 -
Component Unit Funds STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES AND STATEMENT OF ACTIVITIES - DRAIN COMMISSION Year Ended September 30, 2016 Capital Projects Drain Lake Drain Revolving Level REVENUES Special assessments $ 55,274 $ - $ 7,967 Interest 70 7 32 TOTAL REVENUES 55,344 7 7,999 EXPENDITURES/EXPENSES Current Public works 187,475-33,377 NET CHANGE IN FUND (132,131) 7 (25,378) BALANCES/NET POSITION Fund balances/net position, beginning of year 189,327 14,172 82,065 Fund balances/net position, end of year $ 57,196 $ 14,179 $ 56,687-91 -
Statement Total Adjustments of Activities $ 63,241 $ - $ 63,241 109-109 63,350-0- 63,350 220,852 7,762 228,614 (157,502) (7,762) (165,264) 285,564 994,763 1,280,327 $ 128,062 $ 987,001 $ 1,115,063-92 -
Component Unit Funds RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES - DRAIN COMMISSION Year Ended September 30, 2016 Net change in fund balances - total governmental funds $ (157,502) 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 activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay $ 31,605 Depreciation expense (39,367) Excess of depreciation expense over capital outlay (7,762) Change in net position of governmental activities $ (165,264) - 93 -
Component Unit Funds COMBINING BALANCE SHEET AND STATEMENT OF NET POSITION - BOARD OF PUBLIC WORKS September 30, 2016 Debt Ontwa Porter Village of Village of Township Township Vandalia Vandalia Sewer Sewer Water Sewer ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets Cash and cash equivalents $ 3,641 $ - $ 7,898 $ - Current portion of lease receivable - - - - Total current assets 3,641-0- 7,898-0- Noncurrent assets Lease receivable, net of current portion - - - - Deferred outflows of resources Deferred charges on refunding - - - - TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 3,641 $ -0- $ 7,898 $ -0- LIABILITIES Current liabilities Current portion of long-term debt $ - $ - $ - $ - Noncurrent liabilities Noncurrent portion of long-term debt - - - - TOTAL LIABILITIES -0- -0- -0- -0- FUND BALANCES Restricted for debt service 3,641-7,898 - Restricted for capital projects - - - - TOTAL FUND BALANCES 3,641-0- 7,898-0- TOTAL LIABILITIES AND FUND BALANCES $ 3,641 $ -0- $ 7,898 $ -0- NET POSITION Restricted for capital projects - 94 -
Service Paradise Painter Lake Juno Edwardsburg Lake Area Donnell Sewer Christiana Sewer Sewer Lake Sewer $ - $ - $ 948 $ 1,294 $ 688 - - - - - -0- -0-948 1,294 688 - - - - - - - - - - $ -0- $ -0- $ 948 $ 1,294 $ 688 $ - $ - $ - $ - $ - - - - - - - - 948 1,294 688 - - - - - -0- -0-948 1,294 688-0- -0- -0- -0- -0- $ -0- $ -0- $ 948 $ 1,294 $ 688-95 -
Component Unit Funds COMBINING BALANCE SHEET AND STATEMENT OF NET POSITION - BOARD OF PUBLIC WORKS - CONCLUDED September 30, 2016 Capital Projects Village of Vandalia Lakes Area Water Sewer ASSETS AND DEFERRED OUTFLOWS OF RESOURCES Current assets Cash and cash equivalents $ 22,115 $ 816 Current portion of lease receivable - - Total current assets 22,115 816 Noncurrent assets Lease receivable, net of current portion - - Deferred outflows of resources Deferred charges on refunding - - TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES $ 22,115 $ 816 LIABILITIES Current liabilities Current portion of long-term debt $ - $ - Noncurrent liabilities Noncurrent portion of long-term debt - - TOTAL LIABILITIES -0- -0- FUND BALANCES Restricted for debt service - - Restricted for capital projects 22,115 816 TOTAL FUND BALANCES 22,115 816 TOTAL LIABILITIES AND FUND BALANCES $ 22,115 $ 816 NET POSITION Restricted for capital projects - 96 -
Statement of Total Adjustments Net Position $ 37,400 $ - $ 37,400-1,944,469 1,944,469 37,400 1,944,469 1,981,869-27,750,824 27,750,824-157,176 157,176 $ 37,400 $ 29,852,469 29,889,869 $ - $ 1,958,938 1,958,938-27,750,824 27,750,824-0- 29,709,762 29,709,762 14,469 (14,469) 22,931 (22,931) 37,400 (37,400) $ 37,400 $ 29,672,362 $ 180,107 $ 180,107-97 -
Component Unit Funds RECONCILIATION OF THE COMBINING BALANCE SHEET TO THE STATEMENT OF NET POSITION - BOARD OF PUBLIC WORKS September 30, 2016 Fund balances - total component unit funds $ 37,400 Amounts reported for governmental activities in the statement of net assets are different because: Certain receivables are not susceptible to accrual in the governmental funds due to not having met the criteria to be considered available to finance current operations. 29,695,293 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds. Long-term liabilities at year-end consist of: Long-term debt $ (29,709,762) Unamortized deferred amounts on debt issuance 157,176 (29,552,586) Net position of governmental activities $ 180,107-98 -
Component Unit Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES AND STATEMENT OF ACTIVITIES - BOARD OF PUBLIC WORKS Year Ended September 30, 2016 Debt Ontwa Porter Village of Village of Township Township Vandalia Vandalia Sewer Sewer Water Sewer REVENUES Intergovernmental $ 679,059 $ 965,775 $ 390,280 $ 24,846 Interest - - - - Other revenue - - - - TOTAL REVENUES 679,059 965,775 390,280 24,846 EXPENDITURES/EXPENSES Debt service Principal 565,000 735,000 261,000 11,000 Interest and fiscal charges 114,059 230,775 287,339 13,846 TOTAL EXPENDITURES/EXPENSES 679,059 965,775 548,339 24,846 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES/EXPENSES -0- -0- (158,059) -0- OTHER FINANCING SOURCES (USES) Transfers in - - 157,722 - Transfers out - - - - TOTAL OTHER FINANCING SOURCES (USES) -0- -0-157,722-0- NET CHANGE IN FUND BALANCES/NET POSITION -0- -0- (337) -0- Fund balances/net position, beginning of year 3,641-8,235 - Fund balances/net position, end of year $ 3,641 $ -0- $ 7,898 $ -0- - 99 -
Service Paradise Painter Lake Juno Edwardsburg Lakes Area Donnell Sewer Christiana Sewer Sewer Lake Sewer $ 20,683 $ 152,863 $ 126,478 $ 475,251 $ 179,594 - - - - - - - - - - 20,683 152,863 126,478 475,251 179,594 8,000 125,000 51,700 148,500 175,000 12,683 27,863 74,778 326,006 4,594 20,683 152,863 126,478 474,506 179,594-0- -0- -0-745 -0- - - - - - - - - - - -0- -0- -0- -0- -0- - - 948 549 688-0- -0- -0-745 -0- $ -0- $ -0- $ 948 $ 1,294 $ 688-100 -
Component Unit Funds COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES AND STATEMENT OF ACTIVITIES - BOARD OF PUBLIC WORKS - CONCLUDED Year Ended September 30, 2016 Capital Projects Village of Vandalia Lakes Area Water Sewer REVENUES Intergovernmental $ - $ - Interest 44,846 1 Other revenue - 810 TOTAL REVENUES 44,846 811 EXPENDITURES/EXPENSES Debt service Principal - - Interest and fiscal charges - - TOTAL EXPENDITURES/EXPENSES -0- -0- EXCESS OF REVENUES OVER (UNDER) EXPENDITURES/EXPENSES 44,846 811 OTHER FINANCING SOURCES (USES) Transfers in - - Transfers out (157,722) - TOTAL OTHER FINANCING SOURCES (USES) (157,722) -0- NET CHANGE IN FUND BALANCES/NET POSITION (112,876) 811 Fund balances/net position, beginning of year 134,991 5 Fund balances/net position, end of year $ 22,115 $ 816-101 -
Statement Total Adjustments of Activities $ 3,014,829 $ (2,096,346) $ 918,483 44,847-44,847 810-810 3,060,486 (2,096,346) 964,140 2,080,200 (2,080,200) - 1,091,943 6,716 1,098,659 3,172,143 (2,073,484) 1,098,659 (111,657) (22,862) (134,519) 157,722-157,722 (157,722) - (157,722) -0- -0- -0- (111,657) (22,862) (134,519) 149,057 165,569 314,626 $ 37,400 $ 142,707 $ 180,107-102 -
Component Unit Funds RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES - BOARD OF PUBLIC WORKS Year Ended September 30, 2016 Net change in fund balances - total governmental funds $ (111,657) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report payments received by other municipalities for principal debt service as revenue and amounts paid for construction of related assets as expenditures, but the statement of activities does not. (2,096,346) Repayment of long-term debt and borrowing of long-term debt is reported as expenditures and other financing sources in governmental funds, but the repayment reduces long-term liabilities and the borrowings increase long-term liabilities in the statement of net position. In the current year, these amounts consist of: Debt principal retirement $ 2,080,200 Net effect of bond refunding and related items (6,716) 2,073,484 Change in net position of governmental activities $ (134,519) - 103 -
Component Unit Funds BALANCE SHEET - ECONOMIC DEVELOPMENT CORPORATION September 30, 2016 Special Revenue ASSETS Cash $ 15,460 LIABILITIES $ - FUND BALANCE Unassigned 15,460 TOTAL LIABILITIES AND FUND BALANCE $ 15,460 Note: Reconciliation of the governmental fund balance sheet to the statement of net position for this component unit is not required as the fund balance was equal to net position as of September 30, 2016. - 104 -
Component Unit Funds STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - ECONOMIC DEVELOPMENT CORPORATION Year Ended September 30, 2016 Special Revenue REVENUES Intergovernmental $ 24,000 Interest and rents 10 Donations 12,000 TOTAL REVENUE 36,010 EXPENDITURES Current Community and economic development 23,040 NET CHANGE IN FUND BALANCE 12,970 Fund balance, beginning of year 2,490 Fund balance, end of year $ 15,460 Note: Reconciliation of the statement of revenues, expenditures, and changes in fund balance of this component unit's governmental fund to the statement of activities is not required as the net change in fund balance was equal to the change in net position for the year ended September 30, 2016. - 105 -
Component Unit Funds STATEMENT OF NET POSITION - LAND BANK AUTHORITY September 30, 2016 Enterprise ASSETS Current assets Cash and cash equivalents $ 82,793 Property inventory 6,454 TOTAL ASSETS $ 89,247 LIABILITIES $ - NET POSITION Unrestricted 89,247 TOTAL NET POSITION $ 89,247-106 -
Component Unit Funds STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - LAND BANK AUTHORITY Year Ended September 30, 2016 Enterprise OPERATING REVENUES Other revenue $ 756 OPERATING EXPENSES 20 Public works OPERATING INCOME 736 NONOPERATING REVENUES Interest earnings 918 CHANGE IN NET POSITION 1,654 Net position, beginning of year 87,593 Net position, end of year $ 89,247-107 -
Component Unit Funds STATEMENT OF CASH FLOWS - LAND BANK AUTHORITY Year Ended September 30, 2016 Enterprise CASH FLOWS FROM OPERATING ACTIVITIES Sale of property inventory $ 746 CASH FLOWS FROM INVESTING ACTIVITIES Interest earnings 918 NET INCREASE IN CASH AND CASH EQUIVALENTS 1,664 Cash and cash equivalents, beginning of year 81,129 Cash and cash equivalents, end of year $ 82,793 CASH FLOWS FROM OPERATING ACTIVITIES Operating income $ 736 Adjustments to reconcile operating income to net cash provided by operating activities Decrease in property inventory 10 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 746-108 -
STATISTICAL SECTION (UNAUDITED)
COUNTY OF CASS, MICHIGAN Statistical Section - Table of Contents For the Year Ending September 30, 2016 Table Financial Trends - These schedules contain trend information to assist the reader in understanding how the financial performance of the County has changed during recent years. Net Position by Component 1 Changes in Net Position 2 Fund Balances - Governmental Funds 3 Changes in Fund Balances - Governmental Funds 4 Revenue Capacity - These schedules contain information to assist the reader to access the factors affecting the County's ability to generate revenue. Assessed Value and Estimated Actual Value of Taxable Property 5 Property Tax Rates for Direct and Overlapping Governments 6 Principal Taxpayers 7 Property Tax Levies and Collections 8 Debt Capacity - These schedules present information to assist the reader in assessing the capacity for the County to support current debt and the ability to issue additional debt in the future. Ratios of Outstanding Debt by Type 9 Ratios of Net General Bonded Debt Outstanding 10 Computation of Direct and Overlapping Bonded Debt 11 Computation of Legal Debt Margin 12 Demographic and Economic Information - The schedules offer indicators to assist the reader to understand the environment within which the County's financial activities take place and to help make comparisons over time and with other governmental units. Demographic and Economic Statistics 13 Principal Employers 14 Full-Time Equivalent County Government Employees by Function 15 Operating Information - These schedules contain information about the County's operations and resources to assist the reader to understand how the County's financial information relates to the services the County provides and the activities it performs. Operating Indicators by Function 16 Capital Asset Statistics by Function 17 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. - 109 -
Table 1 COUNTY OF CASS, MICHIGAN Net Position By Component Last Ten Years (Unaudited) Fiscal Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Governmental activities Net investment in capital assets $ 8,297,917 $ 8,118,501 $ 8,025,001 $ 8,150,060 $ 8,499,880 $ 8,482,320 $ 8,844,654 $ 8,990,122 $ 9,163,253 $ 9,615,294 Restricted 4,803,545 4,527,313 4,090,270 3,807,790 3,544,775 3,586,703 5,365,946 8,215,783 6,873,841 7,552,274 Unrestricted 5,666,817 6,342,016 11,242,761 10,046,727 10,624,144 11,173,350 9,018,600 6,310,871 7,011,689 5,779,805 Total governmental activities net position $ 18,768,279 $ 18,987,830 $ 23,358,032 $ 22,004,577 $ 22,668,799 $ 23,242,373 $ 23,229,200 $ 23,516,776 $ 23,048,783 $ 22,947,373 Business-type activities Net investment in capital assets $ - $ - $ - $ - $ 1,220,458 $ 1,303,639 $ 1,287,881 $ 1,155,820 $ 1,172,680 $ 1,269,114 Restricted - 293,442 299,746 604,825 704,780 571,462 577,033 576,063 459,027 256,951 Unrestricted 10,313,058 9,222,900 9,152,416 9,263,688 12,546,449 11,846,810 10,702,629 10,462,645 11,034,203 11,824,681 Total business-type activities net position $ 10,313,058 $ 9,516,342 $ 9,452,162 $ 9,868,513 $ 14,471,687 $ 13,721,911 $ 12,567,543 $ 12,194,528 $ 12,665,910 $ 13,350,746 Primary government Net investment in capital assets $ 8,297,917 $ 8,118,501 $ 8,025,001 $ 8,150,060 $ 9,720,338 $ 9,785,959 $ 10,132,535 $ 10,145,942 $ 10,335,933 $ 10,884,408 Restricted 4,803,545 4,820,755 4,390,016 4,412,615 4,249,555 4,158,165 5,942,979 8,791,846 7,332,868 7,809,225 Unrestricted 15,979,875 15,564,916 20,395,177 19,310,415 23,170,593 23,020,160 19,721,229 16,773,516 18,045,892 17,604,486 Total primary government net position $ 29,081,337 $ 28,504,172 $ 32,810,194 $ 31,873,090 $ 37,140,486 $ 36,964,284 $ 35,796,743 $ 35,711,304 $ 35,714,693 $ 36,298,119-110 -
Table 2 COUNTY OF CASS, MICHIGAN Changes in Net Position Last Ten Years (Unaudited) Fiscal Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Expenses Governmental activities: General government $ 9,945,980 $ 9,750,549 $ 9,396,584 $ 8,608,489 $ 7,858,507 $ 7,387,214 $ 7,334,384 $ 7,224,696 $ 7,273,063 $ 6,941,995 Public safety 7,521,746 6,689,794 6,859,616 7,952,185 7,973,040 7,790,432 7,552,543 6,835,829 6,999,844 6,818,148 Public works 1,316 2,571 3,372 107,915 2,438 2,779 16,101 20,435 3,006 1,822 Health and welfare 3,456,430 3,541,072 3,283,870 3,514,572 3,347,502 3,149,796 3,264,157 3,151,200 3,111,227 3,223,765 Recreation and cultural 132,894 131,181 123,151 177,119 193,555 190,583 216,582 296,884 148,819 130,475 Interest on long-term debt 494,238 384,013 383,863 194,301 125,036 189,328 199,280 210,473 221,361 230,680 Total governmental activities expenses 21,552,604 20,499,180 20,050,456 20,554,581 19,500,078 18,710,132 18,583,047 17,739,517 17,757,320 17,346,885 Business-type activities expenses: Medical Care Facility - - - - 7,432,846 7,493,642 7,210,121 7,210,465 6,973,022 6,208,386 Delinquent tax collections/forfeitures 166,706 180,999 289,746 131,297 181,704 116,841 176,117 327,582 228,734 59,076 Jail Commissary 133,400 109,899 100,072 120,655 124,413 103,994 100,160 94,566 111,850 99,302 Public works projects - - - - - - - 1,199,090 1,311,520 1,459,057 Total business-type activities 300,106 290,898 389,818 251,952 7,738,963 7,714,477 7,486,398 8,831,703 8,625,126 7,825,821 Total primary government expenses $ 21,852,710 $ 20,790,078 $ 20,440,274 $ 20,806,533 $ 27,239,041 $ 26,424,609 $ 26,069,445 $ 26,571,220 $ 26,382,446 $ 25,172,706 Program Revenues Governmental activities: Charges for services: General government $ 1,929,696 $ 1,896,756 $ 1,778,209 $ 1,884,418 $ 1,897,331 $ 1,881,102 $ 1,713,311 $ 2,172,835 $ 2,152,039 $ 1,755,454 Public safety 1,084,896 1,028,501 1,348,058 1,043,646 1,014,842 1,069,452 1,077,472 1,140,866 1,077,988 705,724 Public works - - - 7,031 9,424 881 9,346 931 9,054 - Health and welfare 223,922 342,119 259,810 255,038 205,175 170,744 193,181 185,726 202,827 75,743 Recreation and cultural 86,902 52,250 70,275 2,591 3,293 4,126 2,161 2,580 3,257 4,809 Total charges for services 3,325,416 3,319,626 3,456,352 3,192,724 3,130,065 3,126,305 2,995,471 3,502,938 3,445,165 2,541,730 Operating grants and contributions 3,458,641 3,673,973 3,888,606 3,644,181 2,874,863 3,365,747 3,110,484 2,997,797 3,148,925 4,195,066 Capital Grants and Contributions - - - - - - - - - - Total government activities program revenue 6,784,057 6,993,599 7,344,958 6,836,905 6,004,928 6,492,052 6,105,955 6,500,735 6,594,090 6,736,796 Business-type activities Charges for services Medical Care Facility - - - - 7,997,983 7,968,150 7,381,027 6,692,993 6,157,395 6,147,255 Delinquent tax collections/forfeitures 1,144,721 679,074 650,248 500,179 659,650 830,257 789,043 1,073,794 313,752 484,178 Jail Commissary 194,918 160,169 157,679 178,117 184,338 156,316 133,220 132,532 146,327 153,840 Public works projects - - - - - - - 1,197,725 1,306,537 1,440,371 Total Charges for services 1,339,639 839,243 807,927 678,296 8,841,971 8,954,723 8,303,290 9,097,044 7,924,011 8,225,644 Operating grants and contributions - - - - 42,163 41,683 34,845 39,155 124,598 902,707 Total business-type activities program revenues 1,339,639 839,243 807,927 678,296 8,884,134 8,996,406 8,338,135 9,136,199 8,048,609 9,128,351 Total primary government revenues $ 8,123,696 $ 7,832,842 $ 8,152,885 $ 7,515,201 $ 14,889,062 $ 15,488,458 $ 14,444,090 $ 15,636,934 $ 14,642,699 $ 15,865,147-111 -
COUNTY OF CASS, MICHIGAN Changes in Net Position - Concluded Last Ten Years (Unaudited) Fiscal Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Net (Expense) Revenue Governmental activities $ (14,768,547) $ (13,505,581) $ (12,705,498) $ (13,717,676) $ (13,495,150) $ (12,218,080) $ (12,477,092) $ (11,238,782) $ (11,163,230) $ (10,610,089) Business-type activities 1,039,533 548,345 418,109 426,344 1,145,171 1,281,929 851,737 304,496 (576,517) 1,302,530 Total primary government net expense $ (13,729,014) $ (12,957,236) $ (12,287,389) $ (13,291,332) $ (12,349,979) $ (10,936,151) $ (11,625,355) $ (10,934,286) $ (11,739,747) $ (9,307,559) General Revenues and Other Changes in Net Position Governmental activities: Property taxes $ 12,771,729 $ 12,295,349 $ 11,852,581 $ 11,571,954 $ 11,283,435 $ 11,292,308 $ 11,217,875 $ 10,870,024 $ 10,396,614 $ 12,738,309 Grants and contributions not restricted to specific programs 1,041,228 1,039,403 833,381 794,565 778,263 290,118 - - - 294,408 Unrestricted investment earnings 20,012 19,022 18,120 19,691 20,967 28,664 48,661 50,196 149,900 168,375 Other 78,275 11,210 92,447 11,781 - - 3,700 - - - Gain on sale of capital assets - - - - - - - - - 5,400 Transfers 637,752 803,348 1,240,478 759,410 838,911 620,163 919,280 786,555 718,126 645,286 Total governmental activities 14,548,996 14,168,332 14,037,007 13,157,401 12,921,576 12,231,253 12,189,516 11,706,775 11,264,640 13,851,778 Business-type activities: General revenues and transfers (242,817) (484,165) (834,460) (166,204) (282,038) (478,619) (775,878) (108,319) (645,286) (1,011,063) Total primary government $ 14,306,179 $ 13,684,167 $ 13,202,547 $ 12,991,197 $ 12,639,538 $ 11,752,634 $ 11,413,638 $ 11,598,456 $ 10,619,354 $ 12,840,715 Change in Net Position Governmental activities $ (219,551) $ 662,751 $ 1,331,509 $ (560,275) $ (573,574) $ 13,173 $ (287,576) $ 467,993 $ 101,410 $ 3,241,689 Business-type activities 796,716 64,180 (416,351) 260,140 863,133 803,310 75,859 196,177 (1,221,803) 291,467 Total primary government $ 577,165 $ 726,931 $ 915,158 $ (300,135) $ 289,559 $ 816,483 $ (211,717) $ 664,170 $ (1,120,393) $ 3,533,156-112 -
Table 3 COUNTY OF CASS, MICHIGAN Fund Balances - Governmental Funds Last Ten Years (Unaudited) Fiscal Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 General Fund Reserved $ - $ - $ - $ - $ - $ - $ 435,518 $ 399,619 $ 94,481 $ 358,167 Unreserved - - - - - - 6,673,129 6,104,202 5,062,363 3,674,258 Nonspendable 64,393 67,909 82,018 58,195 88,635 63,710 - - - - Restricted 237,643 237,643 226,965 325,124 309,599 351,267 - - - - Committed 536,073 535,981 535,691 535,392 534,214 531,752 - - - - Assigned 3,959,939 3,942,082 3,684,299 3,683,461 3,402,840 3,431,049 - - - - Unassigned 5,533,455 5,126,404 4,817,229 4,449,098 4,638,909 4,285,615 - - - - Total general fund $ 10,331,503 $ 9,910,019 $ 9,346,202 $ 9,051,270 $ 8,974,197 $ 8,663,393 $ 7,108,647 $ 6,503,821 $ 5,156,844 $ 4,032,425 All Other Governmental Funds Reserved $ - $ - $ - $ - $ - $ - $ 2,272,200 $ 3,235,001 $ 4,149,456 $ 4,795,237 Unreserved, reported in: Special revenue funds - - - - - - 2,375,735 2,101,919 2,417,672 2,480,927 Debt service funds - - - - - - 8,917 8,917 8,917 8,917 Capital projects funds - - - - - - 6,039 6,019 10,828 10,577 Nonspendable 13,972 4,611 2,321 5,158 4,750 4,750 - - - - Restricted 4,277,716 3,925,750 3,453,450 3,078,124 2,847,549 2,915,738 - - - - Assigned 522,788 662,571 572,945 336,733 194,394 366,391 - - - - Total all other governmental funds $ 4,814,476 $ 4,592,932 $ 4,028,716 $ 3,420,015 $ 3,046,693 $ 3,286,879 $ 4,662,891 $ 5,351,856 $ 6,586,873 $ 7,295,658 Total fund balance of all governmental funds $ 15,145,979 $ 14,502,951 $ 13,374,918 $ 12,471,285 $ 12,020,890 $ 11,950,272 $ 11,771,538 $ 11,855,677 $ 11,743,717 $ 11,328,083 Note: GASB Statement No. 54 became effective and was implemented in 2011. Prior year amounts were not restated. - 113 -
Table 4 COUNTY OF CASS, MICHIGAN Changes in Fund Balances - Governmental Funds Last Ten Years (Unaudited) Fiscal Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Revenues Taxes and special assessments $ 12,903,305 $ 12,316,391 $ 11,684,227 $ 11,632,412 $ 11,253,201 $ 11,235,900 $ 11,436,206 $ 10,899,057 $ 10,073,440 $ 12,091,636 Intergovernmental 4,542,812 4,855,356 4,661,704 4,399,611 3,516,840 3,286,400 3,021,088 2,812,920 2,837,577 2,999,280 Licenses and permits 156,238 136,559 134,697 145,388 143,397 152,848 148,360 152,678 158,145 152,380 Contributions 23,623 27,074 48,363 38,278 49,591 255,380 37,845 36,035 42,285 22,242 Fines and forfeits 93,459 127,296 183,213 111,461 118,828 123,289 130,563 198,234 155,977 588,148 Charges for services 2,555,654 2,396,364 2,605,066 2,410,740 2,171,896 2,188,253 2,198,093 2,226,052 2,312,986 1,868,574 Interest and rentals 108,237 142,460 280,489 256,329 312,773 311,510 271,552 320,521 553,831 610,997 Other revenue/reimbursements 432,545 367,854 375,373 301,132 490,833 488,154 350,816 804,489 683,188 1,197,962 Total revenues 20,815,873 20,369,354 19,973,132 19,295,351 18,057,359 18,041,734 17,594,523 17,449,986 16,817,429 19,531,219 Expenditures Current: General government 8,633,055 8,281,585 8,533,653 8,049,278 7,166,403 7,152,976 7,076,416 6,803,120 6,740,469 6,634,817 Public safety 7,438,519 6,788,385 7,253,906 7,192,971 7,154,927 7,355,656 7,136,178 6,980,419 6,471,377 6,782,059 Public works 1,216 2,478 3,382 102,858 2,438 2,779 15,953 20,866 2,908 1,822 Health and welfare 3,362,479 3,487,601 3,370,794 3,260,163 3,076,975 3,041,811 3,159,067 3,217,843 2,944,031 3,155,039 Recreation and cultural 166,035 166,567 165,252 128,357 145,946 154,055 180,119 303,164 112,932 97,975 Other 1,104 264,154 326,095 275,678 300,010 281,802 297,778 291,006 333,712 296,208 Debt service: Principal 379,023 275,000 270,000 1,300,000 205,000 190,000 185,000 170,000 160,000 150,000 Interest 115,215 109,013 113,863 198,569 166,807 192,523 203,087 214,087 224,437 234,068 Capital outlay 713,451 669,886 252,989 256,492 613,403 111,561 344,344 119,076 130,055 143,768 Total expenditures 20,810,097 20,044,669 20,289,934 20,764,366 18,831,909 18,483,163 18,597,942 18,119,581 17,119,921 17,495,756 Revenues over (under) expenditures 5,776 324,685 (316,802) (1,469,015) (774,550) (441,429) (1,003,419) (669,595) (302,492) 2,035,463 Other financing sources (uses) Transfers in 1,941,703 1,944,869 2,294,605 1,513,926 1,696,696 926,541 2,749,666 2,466,780 2,557,751 2,338,561 Transfers out (1,304,451) (1,141,521) (1,074,170) (754,516) (857,785) (306,378) (1,830,386) (1,685,225) (1,839,625) (1,693,275) Proceeds from long-term debt - - - 1,160,000 2,850,000 - - - - - Net refunding activity - - - - (2,843,743) - - - - - Total other financing sources (uses) 637,252 803,348 1,220,435 1,919,410 845,168 620,163 919,280 781,555 718,126 645,286 Net change in fund balances 643,028 1,128,033 903,633 450,395 70,618 178,734 (84,139) 111,960 415,634 2,680,749 Fund balances, beginning of year 14,502,951 13,374,918 12,471,285 12,020,890 11,950,272 11,771,538 11,855,677 11,743,717 11,328,083 8,647,334 Fund balances, end of year $ 15,145,979 $ 14,502,951 $ 13,374,918 $ 12,471,285 $ 12,020,890 $ 11,950,272 $ 11,771,538 $ 11,855,677 $ 11,743,717 $ 11,328,083 Debt service as a percentage of noncapital expenditures 3% 2% 2% 8% 2% 2% 2% 2% 2% 2% - 114 -
Table 5 COUNTY OF CASS, MICHIGAN Assessed Value and Estimated Actual Value of Taxable Property Last Ten Years (Unaudited) Total Assessed Personal Total Taxable Direct Estimated Value as a Fiscal Tax Residential Commercial Industrial Property Assessed Tax Actual Percentage of Year Year Property Property Property Other Valuation Valuation Rate Value Actual Value 2016 2015 $ 1,851,493,502 $ 87,262,600 $ 35,161,800 $ 528,989,100 $ 202,488,707 $ 2,705,395,709 6.2200 $ 5,410,791,418 50.0% 2015 2014 1,790,405,658 84,195,387 32,454,968 478,945,244 142,520,715 2,528,521,972 6.2200 5,057,043,944 50.0% 2014 2013 1,770,061,444 79,180,004 29,731,480 428,256,494 127,867,133 2,435,096,555 6.2200 4,870,193,110 50.0% 2013 2012 1,774,494,174 82,579,282 33,273,076 409,767,295 103,016,764 2,403,130,591 6.2200 4,806,261,182 50.0% 2012 2011 1,837,168,899 83,198,482 33,673,289 414,895,816 101,247,191 2,470,183,677 6.2200 4,993,686,278 49.5% 2011 2010 1,923,247,950 85,477,537 41,099,738 482,197,703 98,311,798 2,630,334,726 6.2170 5,088,435,304 51.7% 2010 2009 2,054,812,251 88,032,349 44,270,130 397,762,982 101,523,588 2,686,401,300 6.2170 5,365,251,314 50.1% 2009 2008 1,996,283,562 94,948,151 42,696,428 404,285,059 105,020,739 2,643,233,939 6.0170 5,274,021,098 50.1% 2008 2007 1,854,700,920 96,483,580 40,716,188 328,668,963 105,028,645 2,425,598,296 6.0974 4,848,041,110 50.0% 2007 2006 1,709,492,777 90,963,664 38,029,683 314,022,772 98,251,150 2,250,760,046 6.1553 4,498,783,592 50.0% SOURCE: Equalization Department - 115 -
Table 6 COUNTY OF CASS, MICHIGAN Property Tax Rates (1) Direct and Overlapping Governments Last Ten Years (Unaudited) Direct Rate Overlapping Rates Fiscal Tax County City/Village Townships School State Other Year Year Millage Millages Millages Millages (2) Education Millages Total 2016 2015 6.2200 28.3375 1.6983 27.0134 6.0000 0.6770 69.9462 2015 2014 6.2200 27.7042 1.7092 26.7092 6.0000 0.6770 69.0196 2014 2013 6.2200 15.0679 1.8688 26.6499 6.0000 0.6770 56.4836 2013 2012 6.2200 14.9532 1.7158 26.7495 6.0000 0.6770 56.3155 2012 2011 6.2200 15.0372 1.8355 26.5453 6.0000 0.6770 56.3150 2011 2010 6.2170 13.9802 1.7647 26.6002 6.0000 0.6770 55.2391 2010 2009 6.2170 15.8997 1.8591 26.6341 6.0000 0.6770 57.2869 2009 2008 6.0170 14.8787 1.8909 26.7369 6.0000 0.6770 56.2005 2008 2007 6.0974 14.9466 1.7671 27.2015 6.0000 0.6813 56.6939 2007 2006 6.1553 15.0269 1.8201 27.2719 6.0000 0.6934 56.9676 Tax Drug Council on Components of Direct Rate: Year Operating Enforcement Aging Jail E-911 Total 2015 4.6359 0.4805 0.9036 0.0000 0.2000 6.2200 2014 4.6359 0.4805 0.9036 0.0000 0.2000 6.2200 2013 4.6359 0.4805 0.9036 0.0000 0.2000 6.2200 2012 4.6359 0.4805 0.9036 0.0000 0.2000 6.2200 2011 4.6359 0.4805 0.9036 0.0000 0.2000 6.2200 2010 4.6359 0.4775 0.9036 0.0000 0.2000 6.2170 2009 4.6359 0.4775 0.9036 0.0000 0.2000 6.2170 2008 4.6359 0.4775 0.9036 0.0000 0.0000 6.0170 2007 4.7077 0.4805 0.9092 0.0000 0.0000 6.0974 2006 4.7524 0.4851 0.9178 0.0000 0.0000 6.1553 (1) Per $1,000 of equalized value. (2) Includes intermediate school districts (i.e., special education and vocational) and community colleges. SOURCE: Annual Apportionment Report of Cass County - 116 -
Table 7 COUNTY OF CASS, MICHIGAN Principal Taxpayers Current Tax Year and Ten Years Ago (Unaudited) 2016 2007 Percentage of Percentage of Total County Total County Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Enbridge Energy LP $ 83,734,677 1 3.10% $ - 0.00% Lakehead Pipeline Co 28,225,282 2 1.04% - 0.00% Midwest Energy Cooperative 20,523,892 3 0.76% 12,394,883 2 0.55% Indiana & Michigan Electric Co 13,551,355 4 0.50% 4,010,142 5 0.18% Vector Pipeline 11,195,244 5 0.41% 17,414,314 1 0.77% Semco Energy Gas Co 6,411,015 6 0.24% 4,094,347 4 0.18% American Electric Power 5,832,149 7 0.22% 2,723,113 9 0.12% Darlene B Lowe Trust 3,843,800 8 0.14% - 0.00% North American Associates Inc. 3,521,916 9 0.13% - 0.00% White Land LLC 3,509,455 10 0.13% - 0.00% SPX Corporation - - 4,327,800 3 0.00% Dowagiac Limited Dividend - - 3,293,278 6 0.15% Roger H & Lois A Stamp Trust - - 2,901,326 7 0.13% National Copper Products - - 2,761,700 8 0.12% Hassle Farms LLC - - 2,647,156 10 0.12% $ 180,348,785 6.67% $ 56,568,059 2.32% Source: Cass County Treasurer - 117 -
Table 8 COUNTY OF CASS, MICHIGAN Property Taxes Levied and Collected (1) Last Ten Years (Unaudited) Collected within the (2) Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date Fiscal Year for the Percentage in Subsequent Percent Ended Fiscal Year Amount of Levy Years Amount of Levy 9/30/2016 $ 9,160,394 $ 5,033,412 54.9% $ 4,125,173 (3) $ 9,158,585 100.0% 9/30/2015 8,790,306 5,033,676 57.3% 3,134,451 (3) 8,168,127 92.9% 9/30/2014 8,860,705 4,615,974 52.1% 3,185,149 (3) 7,801,123 88.0% 9/30/2013 8,579,187 4,974,694 58.0% 3,600,903 (3) 8,575,597 100.0% 9/30/2012 8,429,265 6,260,759 74.3% 1,030,798 (3) 7,291,557 86.5% 9/30/2011 8,312,285 4,911,004 59.1% 3,389,745 (3) 8,300,749 99.9% 9/30/2010 8,301,581 6,060,399 73.0% 2,241,182 (3) 8,301,581 100.0% 9/30/2009 8,468,599 5,017,455 59.2% 3,451,144 (3) 8,468,599 100.0% 9/30/2008 8,044,943 5,690,307 70.7% 2,354,636 (3) 8,044,943 100.0% 9/30/2007 7,866,202 5,190,454 66.0% 2,675,748 (3) 7,866,202 100.0% SOURCES: Equalization Department and Cass County Finance Department (1) Includes all real and personal property taxes levied in Cass County. (2) Special property taxes are levied December 1 of the preceding year and become delinquent March 1 of the current year. Delinquent real property taxes of all taxing districts in the County are purchased by the County's Delinquent Tax Revolving Fund. Uncollected personal property taxes must be collected by the applicable local treasurers. Beginning in 2005 the county began to levy a portion of its general taxes on July 1 due to change in law. This shift of tax recognition was completed in the 2007 fiscal year. Taxes continue to not be considered delinquent until March 1 of the following year. (3) Personal property tax delinquencies are maintained at the local unit (not county) level. The amounts remaining uncollected are unknown and not accounted for as management has no control over collections and believes the amounts to be immaterial. - 118 -
Table 9 COUNTY OF CASS, MICHIGAN Ratios of Outstanding Debt By Type Last Ten Years (Unaudited) General Obligation Bonds Total Percentage Fiscal Governmental Business-type Primary of Personal Per Year Activities Activities Government Income Capita 2016 $ 2,975,000 $ - $ 2,975,000 0.1% 631 2015 3,260,000-3,260,000 0.2% 682 2014 3,535,000-3,535,000 0.2% 68 2013 3,805,000-3,805,000 0.2% 73 2012* 3,896,143-3,896,143 0.2% 75 2011 4,090,000 38,661,253 42,751,253 2.7% 818 2010 4,280,000 34,183,527 38,463,527 2.3% 770 2009 4,465,000 28,884,000 33,349,000 2.1% 665 2008 4,635,000 28,401,000 33,036,000 2.2% 654 2007 4,795,000 30,771,000 35,566,000 2.4% 693 * In fiscal year 2012, certain general obligation bonds were reclassified from business-type activities to the Board of Public Works discretely presented component unit. - 119 -
Table 10 COUNTY OF CASS, MICHIGAN Ratios of General Bonded Debt Outstanding Last Ten Years (Unaudited) Year Ended Ratio of (2)(3) Net Bonded Net Gross Less Debt Less Self- Net Debt to Bonded (1) Taxable Bonded Service Fund Supporting Bonded Assessed Debt Per Population Value Debt Amounts Portions Debt Value Capita 09/30/2016 51,657 $ 2,705,395,709 $ 2,975,000 $ - $ - $ 2,975,000 0.11% $ 58 09/30/2015 51,608 2,528,521,972 3,260,000 - - 3,260,000 0.13% 63 09/30/2014 51,910 2,435,096,555 3,535,000 - - 3,535,000 0.15% 68 09/30/2013 51,910 2,403,130,591 3,805,000 - - 3,805,000 0.16% 73 09/30/2012 51,988 2,470,183,677 3,896,143 - - 3,896,143 0.16% 75 09/30/2011 52,293 2,630,334,726 42,751,253 8,667 38,661,253 4,081,333 0.16% 78 09/30/2010 49,925 2,686,401,300 38,463,527 8,917 34,183,527 4,271,083 0.16% 86 09/30/2009 50,185 2,643,233,939 33,349,000 8,917 28,884,000 4,456,083 0.17% 89 09/30/2008 50,551 2,425,598,296 33,036,000 8,917 28,401,000 4,626,083 0.19% 92 09/30/2007 51,329 2,250,760,046 35,566,000 8,917 30,771,000 4,786,083 0.21% 93 (1) From EC Demograph (2) Amounts do not include special assessment debt, revenue bonds or debt of discretely presented component units. (3) In fiscal year 2012, certain general obligation bonds were reclassified from business-type activities to the Board of Public Works discretely presented component unit. - 120 -
Table 11 COUNTY OF CASS, MICHIGAN Computation of Direct and Overlapping Bonded Debt Current Year (Unaudited) (1) Percentage Amount Net Debt Applicable to Applicable to Outstanding Cass County Cass County Direct: Building authority bonds 2,975,000 100.00% 2,975,000 County Road Commission debt 5,130,000 100.00% 5,130,000 $ 8,105,000 8,105,000 Overlapping: School Districts $ 241,355,752 49.29% 118,964,077 Cities and Villages 8,448,120 62.49% 5,279,153 Townships 20,670,604 100.00% 20,670,604 Community Colleges 24,400,000 91.31% 22,279,640 Net overlapping debt $ 294,874,476 167,193,474 Net direct and overlapping debt $ 175,298,474 Overlapping Debt is specific debt of the various school districts, municipalities and community colleges assessed to taxpayers within Cass County. The percentage of County Overlapping Debt is calculated by the percentage of the school district, municipality, or community college tax base that overlaps or is consistent with the County tax base. Any remaining debt that is not considered Overlapping would be debt assessed to non-cass County citizens (citizens of other Counties). (1) Excludes self-supporting debt or that portion paid directly by benefiting municipalities. SOURCE: Municipal Advisory Council of Michigan - 121 -
Table 12 COUNTY OF CASS, MICHIGAN Computation of Legal Debt Margin Last Ten Years (Unaudited) Legal Debt Margin Calculation for Fiscal Year 2016 Assessed value, real and personal property $ 2,705,395,709 Legal debt margin Debt limitation (10% of total valuation) $ 270,539,571 Debt applicable to limit: General obligation bonds 2,975,000 Water and Sewer Project Bonds 0 Total net debt applicable to limit 2,975,000 Legal debt margin $ 267,564,571 Total Total Net Debt Net Debt Applicable to Limit Applicable Legal as a Percentage Year Debt Limit to Limit Debt Margin of Debt Limit 2016 $ 270,539,571 $ 29,599,600 $ 237,964,971 10.94% 2015 252,852,197 31,960,800 217,631,397 12.64% 2014 243,509,656 37,565,500 205,944,156 15.43% 2013 240,313,059 38,999,000 206,503,868 16.23% 2012 247,018,368 40,514,500 201,503,868 16.40% 2011 263,033,473 42,751,253 230,176,603 16.25% 2010 268,640,130 38,463,527 230,974,394 14.32% 2009 264,323,394 33,349,000 209,523,830 12.62% 2008 242,559,830 33,036,000 189,510,005 13.62% 2007 225,076,005 35,566,000 189,510,005 15.80% - 122 -
` Table 13 COUNTY OF CASS, MICHIGAN Demographic and Economic Statistics Last Ten Years (Unaudited) Personal Income Per capita Population (amounts in Personal Unemployment Year (estimated) thousands) Income Rate 2016 51,657 $ 2,006,242 $ 38,838 3.9% 2015 51,608 1,919,538 37,195 4.5% 2014 51,910 1,905,931 36,716 4.8% 2013 51,910 1,921,836 36,787 7.3% 2012 51,988 1,699,643 32,554 7.1% 2011 52,293 1,569,425 31,436 8.7% 2010 49,925 1,646,676 32,983 13.5% 2009 50,185 1,557,324 31,032 11.1% 2008 50,551 1,501,209 29,697 6.4% 2007 51,329 1,460,082 28,446 4.5% Year Population (census) 2010 52,293 2000 51,104 1990 49,477 1980 49,499 1970 43,312 1960 36,932 1950 28,185 Population - www.census.gov Unemployment Rate - www.milmi.org Personal income - www.bea.gov - 123 -
Table 14 COUNTY OF CASS, MICHIGAN Principal Employers Current Year and Ten Years Ago (Unaudited) 2016 2007 Percentage of Percentage of Total County Total County Employer Employees Rank Employment Employees Rank Employment Ameriwood 400 1 1.7% 0.0% Modineer Co. 350 2 1.5% 0.0% Pilkington North America 340 3 1.5% 0.0% Southwestern Michigan College 288 4 1.2% 200 9 1.9% Borgess Lee Memorial Hospital 260 5 1.1% 275 6 2.7% AACOA, Bonnell Aluminum 260 6 1.1% 0.0% K&M Machine-Fabrication, Inc. 250 7 1.1% 0.0% Chemical Financial Corporation 243 8 1.0% 0.0% Edwardsburg Public Schools 230 8 1.0% 192 10 1.9% Cass County 225 9 1.0% 0.0% North American Forest Products 214 10 0.9% 200 8 1.9% Berrybrook Enterprises 500 1 4.8% SPX Corporation 400 2 3.9% Dowagiac Union School District 384 3 3.7% Georgia Boy Manufacturing 325 4 3.1% ICG Aluminum 300 5 2.9% National Copper Products Inc. 200 7 1.9% Total employees in County 23,247 10,360 SOURCE: Cass County Economic Development Corporation - 124 -
Table 15 COUNTY OF CASS, MICHIGAN Full-Time Equivalent County Government Employees By Function/Program Last Ten Years (Unaudited) Full-time Equivalent Employees as of Fiscal Year End Function/Program 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 General Government: Board of Commissioners 7 7 7 7 15 15 15 15 15 15 Circuit Court 4 4 4 4 5 5 5 5 5 5 District Court 11 11 11 11 11 11 11 11 11 11 Friend of the Court 15 14 14 13 13 13 13 13 13 13 Probate Court 4 4 4 4 4 4 4 4 4 4 Family Court 10 10 9 10 9 9 9 9 9 11 County Administration 2 2 3 3 3 3 3 3 2 2 Finance 7 7 2 2 1 1 2 2 2 2 Information & Tech Systems 2 2 4 5 5 5 6 6 7 6 Facilities Management 1 2 4 4 4 4 4 4 4 4 Clerk/Register 6 5 7 7 7 7 7 7 7 7 Treasurer 4 4 5 5 5 5 5 5 4 4 Water Resource Commissioner 5 4 1 1 1 1 1 1 1 1 Equalization 1 1 4 4 - - - - - - Public Safety: Prosecuting Attorney 12 12 12 12 12 12 11 11 11 11 Sheriff 81 81 85 80 81 81 81 81 80 81 Animal Control 5 5 5 5 5 5 5 5 5 5 Social Services: Veterans Services 1 1 1 1 1 1 1 1 1 1 Culture and Recreation: County Extension 2 1 2 2 2 2 2 2 2 2 Parks 2 2 2 2 2 2 2 - - - Total 182 179 186 182 186 186 187 185 183 185 Source: County Budget Office - 125 -
Table 16 COUNTY OF CASS, MICHIGAN Operating Indicators By Function/Program Last Ten Years (Unaudited) Fiscal Year Function/Program 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Public Safety (Sheriff): Number of new calls 12,990 11,620 10,594 11,598 11,782 11,219 11,132 12,063 13,962 14,524 Number of burglaries 251 261 266 279 244 299 300 316 280 311 Number of intakes - Jail 1,998 1,946 1,981 1,899 2,003 1,785 2,000 2,300 2,500 2,400 Number of Court Hours - Jail 1,028 1,004 1,004 1,311 1,080 1,143 1,080 1,040 1,000 1,100 Water Resource Commission: Number of new drainage/ lake level districts - - - - 2-2 1 4 2 Central Dispatch E-911: Number of calls 37,589 38,176 38,136 39,473 39,699 39,977 42,768 43,792 45,777 45,841 Clerk/Register of Deeds: Number of Elections Held 4 3 3 3 4 3 4 3 4 4 Number of deeds recorded 10,703 13,618 10,471 13,017 11,494 10,756 10,973 11,643 11,877 13,407 Animal Control: Number of Animals adopted out 332 291 335 400 433 411 450 400 450 463 Prosecutor: Number of Warrants/Petitions 1,520 1,439 1,869 1,828 1,866 1,866 1,202 1,440 1,790 2,421 SOURCE: Departmental Statistics - 126 -
Table 17 COUNTY OF CASS, MICHIGAN Capital Asset Statistics By Function/Program Last Ten Years (Unaudited) Fiscal Year Function/Program 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Law & Courts Building & Improvements $ 7,373,464 $ 7,373,464 $ 7,373,464 $ 7,373,464 $ 7,373,464 $ 7,373,464 $ 7,373,464 $ 7,373,464 $ 7,373,464 $ 7,373,464 Equipment 1,146,394 1,041,504 830,439 830,439 702,342 680,878 680,878 680,878 680,878 649,822 General Government County Building Land 40,855 40,855 40,855 40,855 40,855 40,855 40,855 40,855 40,855 40,855 Building & Improvements 1,091,917 1,000,624 945,563 776,375 776,375 680,075 680,075 680,075 680,075 680,075 Equipment 652,351 759,535 645,796 595,476 579,729 579,729 579,729 579,729 579,729 503,675 Maintenance/MSU Extension Buildings & Improvements 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 65,000 Equipment - 75,632 75,632 75,632 75,632 75,632 75,632 75,632 75,632 75,632 County Complex M-62 Land 50,285 50,285 50,285 50,285 50,285 50,285 50,285 50,285 50,285 50,285 Buildings & Improvements 82,807 82,807 82,807 82,270 82,807 82,807 - - - - Public Safety Sheriff /Jail Complex Buildings & Improvements 5,762,805 5,723,895 5,679,318 5,679,318 5,514,718 5,514,718 5,514,718 5,514,718 5,514,718 5,514,718 Equipment 675,571 1,957,415 2,000,671 1,857,881 1,895,011 1,820,287 1,513,327 1,413,842 1,393,434 1,370,408 E-911 Facility Buildings & Improvements 985,333 985,333 985,333 985,333 985,333 985,333 985,333 985,333 985,333 985,333 Equipment 782,135 782,135 782,135 782,135 782,135 782,135 782,135 535,875 412,708 412,708 Animal Shelter Buildings & Improvements 871,907 871,907 871,907 871,907 838,255 525,000 525,000 525,000 525,000 525,000 Equipment 26,299 85,370 85,370 85,370 85,370 59,071 59,071 59,071 59,071 59,071 Human Services Health Department Buildings & Improvements 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 Equipment - - - - - - - - - - Mental Health Buildings & Improvements - - - - - - - - - - Medical Care Facility Buildings & Improvements 2,736,707 2,736,707 2,736,707 2,736,707 2,736,707 2,736,707 2,736,707 2,736,707 2,736,707 2,736,707-127 -
COUNTY OF CASS, MICHIGAN Capital Asset Statistics By Function/Program - Concluded Last Ten Years (Unaudited) Fiscal Year Function/Program 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Culture & Recreation District Library Buildings & Improvements $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 $ 1,300,000 Equipment - - - - - - - - - - Parks Land 545,959 545,959 386,786 386,786 386,786 386,786 386,786 386,786 304,516 304,516 Building & Improvements 153,890 153,890 153,890 153,890 153,890 9,165 - - - - Equipment 53,335 53,335 53,335 53,335 24,805 24,805 24,805 - - - Historical Commission Buildings & Improvements - - - - - - - - - - Equipment - - - - - - - - - - SOURCE: County Fixed Assets Records - 128 -
SUPPLEMENTARY INFORMATION TO FINANCIAL STATEMENTS (FEDERAL AWARDS) September 30, 2016
TABLE OF CONTENTS September 30, 2016 INDEPENDENT AUDITOR S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE 1-3 SUPPLEMENTARY INFORMATION Schedule of Expenditures of Federal Awards 4-5 Notes to Schedule of Expenditures of Federal Awards 6-7 INDEPENDENT AUDITOR S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 8-9 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 10 SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 11 Page
Principals --- -- Dale J. Abraham, CPA Steven R. Kirinovic, CPA Aaron M. Stevens, CPA Eric J. Glashouwer, CPA Alan D. Panter, CPA William I. Tucker IV, CPA ABRAHAM & GAFFNEY, P.C. Certified Public Accountants 3511 Coolidge Road Suite 100 East Lansing, MI 48823 (517) 351-6836 FAX: (517) 351-6837 INDEPENDENT AUDITOR S REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Board of Commissioners County of Cass, Michigan Report on Compliance for Each Major Federal Program We have audited the County of Cass, Michigan s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the County of Cass, Michigan s major federal programs for the year ended September 30, 2016. The County of Cass, Michigan s major federal programs are identified in the summary of auditor s results section of the accompanying schedule of findings and questioned costs. Management s Responsibility Management is responsible for compliance with federal statues, regulations, contracts, and the terms and conditions of its federal awards applicable to its federal programs. Auditor s Responsibility Our responsibility is to express an opinion on compliance for each of the County of Cass, Michigan s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the County of Cass, Michigan s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the County of Cass, Michigan s compliance. Auburn Hills East Lansing Grand Rapids St. Johns - 1 -
Opinion on Each Major Federal Program In our opinion, the County of Cass, Michigan, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2016. Report on Internal Control over Compliance Management of the County of Cass, Michigan, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the County of Cass s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the County of Cass, Michigan s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Cass, Michigan, as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the County of Cass, Michigan s basic financial statements. We issued our report thereon dated March 8, 2017, which contained an unmodified opinion on the financial statements. We did not audit the financial statements of the Cass County Road Commission, which represents 51%, 82%, and 28%, respectively of the total assets, net position, and revenues of the discretely presented component units, the Woodlands Behavioral Healthcare Network, which represents 4%, 2%, and 40%, respectively of the total assets, net position, and revenues of the discretely presented component units and the Medical Care Facility which represents 8%, 13%, and 28%, respectively of the total assets, net position, and revenues of the discretely presented component units. Those financial statements were audited by other auditors whose reports thereon have been furnished to us, and our opinions, insofar as they relate to the amounts included for the Cass County Road Commission, Woodlands Behavioral Healthcare Network, and Medical Care Facility, are based solely on the reports of the other auditors. - 2 -
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance 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 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 schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole. ABRAHAM & GAFFNEY, P.C. Certified Public Accountants March 8, 2017-3 -
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2016 Federal Grantor/Pass Through CFDA Pass-through Current Year Grantor/Program Title Number Grantor Number Revenues Expenditures U.S. DEPARTMENT OF JUSTICE Direct Program Bulletproof Vest Partnership 16.607 N/A $ 2,696 $ 2,696 Edward Byrne Memorial Justice Assistance Grant (Byrne JAG) 16.738 2015-MU-BX-0964 70,000 70,000 Adult Drug Court Discretionary Grant 16.585 2015-DC-BX-0025 81,046 81,046 TOTAL U.S. DEPARTMENT OF JUSTICE 153,742 153,742 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Direct Program SAMHSA Grant 93.243 N/A 78,937 78,937 Passed-through Michigan Department of Human Services Child Support Enforcement (Title IV-D) (c) 93.563 Cooperative Reimbursement (a) Friend of the Court CS/FOC-13-14001 679,281 679,281 Prosecuting Attorney CS/PA-13-14002 136,970 136,970 Title IV-D Incentive Payments (b) N/A 90,130 90,130 TOTAL U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 985,318 985,318-4 -
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - CONTINUED Year Ended September 30, 2016 Federal Grantor/Pass Through CFDA Pass-through Current Year Grantor/Program Title Number Grantor Number Revenues Expenditures U.S. DEPARTMENT OF HOMELAND SECURITY Passed-through Michigan State Police 2015 EMPG 97.042 EMC-2016-EP-00001-S01 $ 31,040 $ 31,040 Passed-through Michigan State Police and 5th District Regional Homeland Security Planning Board via Van Buren County 2013 Homeland Security Grant Program 97.067 N/A 1,031 1,031 Non Cash Assistance - 2014 Homeland Security Homeland Security Conference Registrations 97.067 N/A 1,124 1,124 CERT Battery/Compass/Extinguisher/Vests/Spotlight 97.067 N/A 2,280 2,280 CERT Tape Tri-Pak Kits 97.067 N/A 698 698 CBRNE PPE Equipment (chem tape/gloves/boots/coveralls) 97.067 N/A 5,519 5,519 SWAT Tactical Ladders 97.067 N/A 1,579 1,579 SWAT Adapters/STORM Kits/Mounts/Climbers/Entry Kit 97.067 N/A 4,857 4,857 Motorola Radios 97.067 N/A 11,104 11,104 27,161 27,161 TOTAL U.S. DEPARTMENT OF HOMELAND SECURITY 59,232 59,232 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 1,198,292 $ 1,198,292-5 -
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2016 NOTE A: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the County of Cass, Michigan and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements, which are reconciled in Note C below. The County of Cass, Michigan has elected not to use the 10 percent de minimus indirect rate allowed under the Uniform Guidance. NOTE B: SUMMARY OF SIGNIFICANT EXPLANATIONS OF SCHEDULE The following descriptions identified below as (a) - (c) represent explanations that cross reference to amounts on the Schedule of Expenditures of Federal Awards: (a) Reimbursements of these contracts are passed through the State Department of Human Services (DHS). The amounts reported on the Schedule of Expenditures of Federal Awards represent the Federal portion of the respective amounts based on 66% of Title IV-D eligible expenditures for the applicable grants. The entire amount paid by DHS for the reimbursed expenditures is considered Federal. (b) The reimbursements for the IV-D Incentive Payments Program are based on support payments collected. Expenditures have been reported to the extent of earned revenues and are 100% Federal. (c) Denotes program tested as a major program. NOTE C: RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS The following reconciles the federal revenues reported in the September 30, 2016 basic financial statements to the expenditures of the County administered federal programs reported on the Schedule of Expenditures of Federal Awards: Federal/ Federal State State/Local Award Revenue Revenue Expenditures PRIMARY GOVERNMENT GENERAL FUND Emergency management grant $ 31,040 $ - $ 31,040 Prosecutor - cooperative reimbursement program 136,970-136,970 Friend of the Court - cooperative reimbursement 738,767 (59,486) 679,281 Friend of the Court - other 90,130-90,130 Other intergovernmental revenue 2,636,507 (2,455,604) 180,903 TOTAL GENERAL FUND 3,633,414 (2,515,090) 1,118,324-6 -
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - CONTINUED Year Ended September 30, 2016 NOTE C: RECONCILIATION TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS - CONTINUED Federal/ Federal State State/Local Award Revenue Revenue Expenditures PRIMARY GOVERNMENT - CONTINUED SPECIAL REVENUE FUNDS Family drug court implementation $ 148,937 $ (70,000) $ 78,937 Homeland security grant 30,691 (29,660) 1,031 Other intergovernmental revenue 729,770 (729,770) -0- TOTAL SPECIAL REVENUE FUNDS 909,398 (829,430) 79,968 TOTAL $ 4,542,812 $ (3,344,520) $ 1,198,292 NOTE D: SUBRECIPIENTS No Federal awards were passed through by the County of Cass, Michigan to any subrecipients during the year. - 7 -
Principals --- -- Dale J. Abraham, CPA Steven R. Kirinovic, CPA Aaron M. Stevens, CPA Eric J. Glashouwer, CPA Alan D. Panter, CPA William I. Tucker IV, CPA ABRAHAM & GAFFNEY, P.C. Certified Public Accountants 3511 Coolidge Road Suite 100 East Lansing, MI 48823 (517) 351-6836 FAX: (517) 351-6837 INDEPENDENT AUDITOR S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners County of Cass, Michigan We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the businesstype activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the County of Cass, Michigan, as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the County of Cass, Michigan s basic financial statements and have issued our report thereon dated March 8, 2017. Our report includes a reference to other auditors who audited the financial statements of the Cass County Road Commission, the Woodlands Behavioral Healthcare Network, and the Cass County Medical Care Facility, as described in our report on the County of Cass, Michigan s financial statements. This report does not include the results of the other auditors testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the County of Cass, Michigan s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the County of Cass, Michigan s internal control. Accordingly, we do not express an opinion on the effectiveness of the County of Cass, Michigan s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Auburn Hills East Lansing Grand Rapids St. Johns - 8 -
Compliance and Other Matters As part of obtaining reasonable assurance about whether the County of Cass, Michigan s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. ABRAHAM & GAFFNEY, P.C. Certified Public Accountants March 8, 2017-9 -