Middle Georgia Regional Commission Audit Presentation of the June 30, 2015 Comprehensive Annual Financial Report Presented by Chris Edwards McNair, McLemore, Middlebrooks & Co., LLC November 12, 2015

Today’s Objectives Introduce and review brief summary of the CAFR Review our audit results Discuss pertinent recommendations as a result of the audit

The CAFR Comprehensive Annual Financial Report Key sections Introductory section Financial section Statistical section Single Audit section Is the highest form of financial reporting a government can provide. Is prepared by the MGRC finance department

Introductory Section Transmittal letter Is written by the MGRC and signed by the Executive and Finance Directors Certificate of Achievement Awarded to only less than 1% of all local governments Organizational Chart Council Members

Financial Section Report of Independent Accountants Describes the “who”, “what”, “when”, and “how” of the audit process. “Unmodified” opinion, which is the highest opinion an auditor can give on a set of financial statements. References other data and other auditor reports contained in the CAFR.

Financial Section Management’s Discussion and Analysis Is written by the Finance Director Contains commentary information Is one of the few places that you will see comparative financial information The Notes, RSI, and the Statistical Tables are other places Is not covered by our opinion, however, where you see dollars reported those figures have been audited. Shows, in graph form, various financial information. Together with the Transmittal Letter, the MD&A is an excellent way to get a synopsis overview of the MGRC in ten minutes or less.

Financial Section Government Wide Statements Total Assets$3,968,872 Deferred Outflows$75,960 Total Liabilities$2,697,513 Deferred Inflows$522,036 Net Position$842,695 ($766,735 unrestricted) Statement of Net Position

Financial Section Government Wide Statements Statement of Activities Total expenditures to operate the government of $11,351,760 Charges for Services of $344,669 Revenues from federal and state award programs of $11,261,021 Operating net income of $371,499 Membership dues of $539,135 Dues leveraged 21 to 1

Financial Section Fund Statements Balance Sheet Shows the General Fund Shows the Major Funds Area Agency on Aging Coordinated Transportation Other Governmental Funds Shows “Unassigned” fund balance of $2,203,670 $1,761,000 of it is in cash Excellent financial liquidity

Financial Section Fund Statements Statement of Revenues, Expenditures and Changes in Fund Balance Shows the same funds as on the balance sheet General Fund Dues of $539,135 Total revenues of $885,569 Total expenditures of $611,121 Transfers to other funds for match and deficits of $24,947 Net change in fund balance was income of $299,395

Financial Section Notes to the Financial Statements Reporting Entity Capital Assets Interfund Activity Receivables from Other Governments Retirement Plans (GASB 68 – Net Pension Liability) Component Unit information

Financial Section Required Supplementary Information Completely new disclosure for this year as a result of GASB #68 GASB #68 requires the net pension liability to be presented on the balance sheet, rather than in the notes and supplemental information. Prior Period Adjustment Shows more descriptive information about the pension costs, contributions, assets, and liabilities. Ending Net Pension Liability: $1,181,681

Other Sections Statistical Section Single Audit Section Selected as “major” for this year were: Title XIX DHS Coordinated Transportation No findings. No significant deficiencies. No material weaknesses. No questioned costs.

Audit Process and Results Management and staff very well prepared. All requisite preliminary data received timely. Responsive to all questions and requests for analysis. Very competent in their assigned roles.

Recommendations Required Auditor Communication Letter No difficulties encountered. No uncorrected balances to the financial statements. No disagreements with management. No consultations required. Management’s representations received.

Recommendations Observations Fund Balance Reserves Internal Control Recommendations Fraud prevention and awareness Additional funding of pension liability where possible Continued enhancements to board committees on financial information Annual control structure review

Conclusion Questions?