1. Financial Audit Presentation Year Ended June 30, 2018
10/1/2018
Financial Audit Presentation Year Ended June 30, 2018

2. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
OPINION
The Town’s responsibility:
Maintain effective internal controls
There are limitations on internal controls.
Regular risk assessment is important, including assessing the risk of fraud.

3. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
OPINION
The Town’s responsibility:
Financial Statements
Accuracy, completeness, and propriety of balances, amounts, and disclosures

4. Greene Finney’s responsibility:
2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Greene Finney’s responsibility:
Opinion – reasonable assurance that financial statements are materially correct
Does not address the financial condition of the Organization
Purpose of the audit is not to detect fraud. We cannot take responsibility for finding fraud, if it existed.
Issued unmodified opinion

5. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
General Fund
Total fund balance decreased from $2,106k at 6/30/17 to $1,975k at 6/30/18; a decrease of $131k
Restricted fund balance of $182k – primarily for cemetery fund and Envision Williamston.

6. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
General Fund
Unassigned fund balance is $1,793k, a decrease of $139k from the prior year
52% of 2018 actual expenditures and 62% of 2019 budgeted expenditures
GFOA recommends a minimum of 16.7% (two months)

7. 10/1/2018
2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Major Reasons To Maintain An Adequate Fund Balance:
Cash flow through second half of calendar year; property taxes, business licenses and franchise fees are cyclical
Planned future capital expenditures and significant repairs and maintenance
Significant emergencies and unanticipated expenditures
Flexibility for discretionary funding needs
Potential for better interest rates on debt issues (can save the Town money).
To cover potential shortfalls from the state (a) due to budget cuts or (b) as a result of the change in legislation
Extremely important given the uncertain economic times

8. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
General Fund Revenues:
$3,199k for 2018:
$1,128k from property taxes
$363k in franchise fees
$397k in licenses and permits
$250k in hospitality taxes
$221k in sanitation fees
$238k for resource officers
$390k (13.9%) increase from 2017
Increase in property taxes of $77k
Increase in grants of $59k
Increase in resource officers of $72k
Increase in other revenues of $77k
$419k (15.1%) over budget
Hospitality taxes $35k over budget
Licenses and permits $72k over budget
Other charges for services $28k over budget
Grant revenue $73k over budget
Other revenue $131k over budget

9. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
General Fund Expenditures:
$3,426k for 2018:
$1,368k in public safety
$692k in general government
$370k in public works
$520k in recreation
$418k in capital outlay
$303k increase from 2017
General government increased $150k
Recreation increased $137k
Public safety increased $126k
Public works decreased $57k
Capital outlay decreased $86k
$644k (23.2%) over budget
Capital outlay $387k over budget
General government $167k over budget
Public safety $54k over budget

10. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Water Enterprise Fund
Revenues of $1,102k for 2018, an increase of $76k compared to 2017 revenues of $1,026k
Recurring water charges of $1,052k were up $73k (7.4%)
Other revenues increased $3k to $50k
Expenses of $954k for 2018, compared to $1,036k for 2017
Decreased pension costs ($111k)
Change in Net Position of $111k in 2018, compared to a decrease of $10k in 2017
Net Position of $2,856k at 6/30/18, compared to $2,745k at 6/30/17
Total of $1,340k in Net Investment in Capital Assets
Total of $1,516k in Unrestricted Net Position  
Need a large net position for future infrastructure repairs and replacement (anticipate spending $1MM over current water line projects)

11. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Sewer Enterprise Fund
Operating revenues of $1,168k for 2018, an increase of $111k compared to 2017 revenues of $1,057k
Recurring sewer charges of $1,039k were up $110k (11.8%)
Operating expenses of $1,102k for 2018, compared to $924k for 2017
Operating income of $66k for 2018, compared to $133k in PY
Non-operating loss of $99k for 2018; 2017 non-operating income of $331k
Decrease of $430K due to a decrease in grant revenue ($430k)
Change in Net Position of ($33k) for 2018, compared to $464k in PY
Net Position of $7,067k at 6/30/18, compared to $7,100k at 6/30/17
Total of $6,048k in Net Investment in Capital Assets
Total of $367k in Restricted Net Position (primarily debt service)
Total of $652k in Unrestricted Net Position
Need large net position for infrastructure repairs & replacement
Consent Order executed in July 2016 – additional operating costs

12. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Town-Wide (GASB #34)
Net Position - $11,859k
$9,105k Net investment in capital assets
$550k Restricted
$2,204k Unrestricted
Revenues - $5,550k
Expenses - $5,696k
- $643k is non-cash depreciation
Town-Wide (GASB #34)
Assets - $19,998k
$13,791k is capital assets
$5,518k is cash and investments
$690k in other assets
Deferred Outflows of Resources - $688k
Liabilities - $8,741k
$4,991k is long-term obligations
$3,027k is net pension liability
Accounts payable and other accrued liabilities of $723k
Deferred Inflows of Resources - $87k

13. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Long-Term Debt:
The Town’s total outstanding long-term debt at 6/30/18 was $4,918k – decrease of $245k from 6/30/17:
2010A & 2010B Revenue Bonds (Sewer) - $3,353k, matures in 2051, with annual debt service of $162k
2017 Water Meter Lease (Water) - $1,366k, matures in 2027, with annual debt service of $171k
2017 Fire Truck Lease - $198k, matures in 2025, with annual debt service of $31k
Total debt service payments for FY 2019 is expected to be $364k

14. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Internal Control
No material weakness or significant deficiencies noted
Management Letter
Required communications to management and those charged with governance – No matters to report

15. 2018 FINANCIAL AUDIT Town of Williamston, SC ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Summary
Unmodified opinion on the Financial Statements from Greene Finney
General Fund and Water Fund are in very good financial condition as of June 30, 2018; Sewer Fund is in adequate financial condition
The Town should begin developing long-range plans, such as a five-year plan for capital expenditures and related funding