1. County Financial Statements – The County Official’s Role
Wisconsin Counties Association September 22, 2015
Dave Geertsen, Kenosha County
David Maccoux, Schenck SC
Dawn Gunderson Schiel, Ehlers

2. County Finance Director’ Perspective
What role do County officials play with the financial statements?
What is an audit, and was is not an audit?
What is audit failure?

3. Importance of Financial Statements
Financial accounting and financial reporting
Demonstrate stewardship to taxpayers and creditors
Accountability of County officials
Remain financially solvent
Lack of business-like exchange of resources, with taxes levied on taxpayers without necessarily receiving services
Compliance with laws and regulations

4. Independent Auditors’ Report
Responsib

5. Government-wide Financial Statements

6. Statement of Net Position
Illustrates what County owns and how much does it owe.
Assess County’s present financial status and future outlook.
Based on historical cost principles.
Net position components

7. Statement of Net Position – Capital Assets
Additions typically represent the purchase or addition to assets owned by the County.
Deletions represent the sale or disposal of assets or, in the case of construction in progress, the classification to asset categories.
Importance – Are you reinvesting in your assets?

8. Statement of Net Position – Long-term Obligations
What does changes in your long-term obligations represent?
Bonds and notes payable
Employee obligations

9. Statement of Activities
Identify cost to provide services to citizens.
Difference between general and program revenues.
What are the causes in your changes in financial position.

10. Fund Financial Statements

11. Balance Sheet – Governmental Funds
More detailed look at your finances, concentrating on short-term view of basic services provided.
Major fund activities reported
Fund balance components and what is important.

12. Statement of Revenues, Expenditures and Changes in Fund Balances
Focus of statement is cash and other financial resources received within or shortly after the year while expenditures represent services and goods received and due to employees and creditors.
Focus on net change in fund balance, and primary reasons.

13. Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
How did your County’s budget change during the year?
How does your actual results compare to the approved budget?
Understanding your levels of budgetary control.

14. Proprietary Funds
Measurement basis consistent with government-wide financial statements.
Enterprise and internal service funds.

15. Proprietary Funds Analysis of operating revenues and expenses.
Non-operating activities

16. Proprietary Funds
Key financial statement to identify sources and uses of cash compared to operations.
Identify future cash needs and ability of operations to meet obligations.

17. Notes to Financial Statements
Notes in complimenting financial statements of County.
Provide additional detail, including key accounting policies

18. Required Supplemental Information
Management’s Discussion and Analysis (MD&A)
Introduction and overview of your financial statements
Increased comprehension by readers of your financial statements
Management’s ability to highlight important issues
Budgetary comparisons
Other Post-employment Benefits (OPEB)
Pension Information (WRS disclosures - FY 2015)

19. Other Information Supplemental Information
Combining statements of non-major funds
Individual fund financial statements
Statistical Section (CAFR)
Historical trend data
Demographics and other data

20. Thank You David Maccoux, CPA
Shareholder

21. Measurement of Financial Viability Beyond the Basic Financial Statements
September 22, 2015

22. Measuring Financial Validity
Finances
Liquidity
Budgetary Performance
Budgetary Flexibility
Economy
Management
Debt/Pension
Institutional Framework

23. Finances Historical Trends in General Fund Revenues and Expenditures
Trends in Fund Balance (General Fund and Total Governmental)

24. Historical Trends in General Fund Revenues and Expenditures

25. Trends in Fund Balance (General Fund and Total Governmental)

26. Historical Trends in General Fund Revenues and Expenditures

27. Trend in Fund Balance

28. Fund Balance as a % of Revenues

29. Finances Changes in Cash Balance over 5 years
Liquidity (What makes up fund Balance)
Budgetary Performance (General Fund and Total Governmental Funds)
Budgetary Flexibility

30. Economy
Equalized Value – Total Value of taxable property in the governmental unit’s boundaries. Size of tax base is a reflection on its ability to pay. Composition of tax base (Diverse)
Trends in Equalized value and Assessed Values
Average Annual Growth in tax base – Economic health
Per Capita Equalized Value
Top 10 Tax Payers

31. Diversification of Tax Base

32. Equalized Tax Base Trends

33. Economy Largest employers Building permits Housing units
Trends in Employment and Unemployment Data
Census Population data
Average income and age statistics
Adjusted Gross Income per tax return
Adjusted Gross Income as Percentage of State Average

34. Management (Recommended Practices)
Establish Policies
Fund Balance Policy
Debt Policy
Budget Policy
Investment Policy
Monitor Policies and Live within them
Long Range Planning
Periodic Reporting to Elected Officials

35. Policy Monitoring

36. Policy Monitoring

37. Debt/Pension Direct Debt Burden Overall Debt Burden
Payout over Ten Years
Percentage of Expenditures for Debt Service
Pension Liability 37

38. Institutional Framework
Legal and Practical Environment in which you operate
Predictability of Revenues & Expenses
Statutory Limits
Expenditure Restraints
Levy Limits

39. Issuance of Debt and Credit Rating
Analysis of Credit Quality
Assist the investor in determining the risk of an investment
Rating affects the price and interest rate that will be paid when debt is issued

40. Official Statement for Security Offering
Purpose of the Official Statement (3 Basic functions)
1. Provide a description of the securities offered and the transaction
2. Assists with marketing the security
3. Discloses risks and other material information associated with investment in the securities
Its purpose is to tell potential investors what they need to know in order to decide whether or not to buy the securities

41. Senior Municipal Advisor
Dawn Gunderson Schiel
Senior Municipal Advisor 41