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Draper & McGinley, P.A Certified Public Accountants
Presented by:Michele R. Mills, CPA
Partner
The City of Brunswick, MD
Fiscal Year 2015 Audit
Scope of Services
Financial Statement Audit
Responsibilities:
The financial statements are the responsibility of management
Our responsibility is to: Plan and perform the audit to obtain reasonable assurance that
the financial statements are free of material misstatement
Express an opinion on the financial statements based on our audit
The audit was performed in accordance with Generally Accepted Auditing Standards and
Government Auditing Standards
Auditors’ Opinion
The City of Brunswick, Maryland received an Unmodified opinion on the financial
statements.
Overview provided by management of the financial highlights of the City
Our responsibility is to review the MD&A to ensure 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
Management’s Discussion & Analysis (MD&A)
See page 3 - 9 of the audit report
Governmental Accounting Standards Board requires:
Two sets of Financial Statements
Government – wide (pg. 10 - 11)Fund – level (pg. 12 - 18)
GASB Reporting Model
Financial Highlights
New for FY 2015
City implemented GASB 68; “Accounting and Financial Reporting for Pensions”
Required restatement of opening net position.
Required the City to record its proportionate share of the net pension liability as a participating governmental unit in the State’s retirement system.
The City’s proportionate share as of 06/30/15 was $970,619.
See page 10 of the audit report
Required government-wide financial statements:
Statement of Net PositionStatement of Activities
Government – Wide Statements
Statement of Net Position:
Presents the financial condition of the governmental and business-type activities of the
City
Government – Wide Statements
Statement of Net Position
Total Assets $42,530,635 (Government-Wide)
Governmen-tal Activi-
ties,
$11,383,820, 27%Business-
Type Activi-ties,
$31,146,815,
73%
See page 10 of the audit report
0.3% decrease from FY 2014
Statement of Net Position
Total Liabilities $5,292,252 (Government-Wide)
Governmen-tal Activities,
$1,642,538,
31%
Business-Type Activi-
ties, $3,649,714,
69%
See page 10 of the audit report
19% increase from FY 2014
Overall, the City’s debt decreased 5% from FY 2014.
No new borrowings in FY 2015.
Principal Payments of $197,639 $91,630 - Governmental activities $106,009 - Business-type activities
See page 31 of the audit report
Deferred Inflows/Outflows of Resources
Deferred outflows of resources – a consumption of net assets by the government that is applicable to a future reporting period (attributable to pension)
Governmental activities - $117,082 Business-type activities - $34,973
Deferred inflows of resources – an acquisition of net assets by the government that is applicable to a future reporting period (attributable to pension and unearned revenue)
Governmental activities - $114,996 Business-type activities - $12,192,333
See page 10 of the audit report
Deferred Inflows/Outflows of Resources
Assets + Deferred Outflows – Liabilities – Deferred Inflows = Net Position
Governmental Activities:Net position - $9,743,368
Business-type Activities:Net position - $15,339,741
Statement of Net Position
Total Net Position $25,083,109 (Government-Wide)
Governmental Activities, $9,743,368,
39%
Business-Type Activities, $15,339,741,
61%
See page 10 of the audit report
Statement of Activities:
Presents a comparison between direct expenses and program revenues for each program or
function of the City’s governmental and business-type activities
Government – Wide Statements
Statement of Activities
Governmental Activities
Total Expenses
$3,958,638
Charges for Services
$412,020
Operating Grants and Contributio
ns
$346,458
Capital Grants and
Contributions
$ -
General Revenues
$3,833,907
See page 11 of the audit report
Expenses Program Revenues
Statement of Activities
Business-type
Activities
Total Expenses
$3,222,623
Charges for Services
$2,716,512
Operating Grants and Contributio
ns
$42,000
General Revenues
$113,263
See page 11 of the audit report
Expenses Revenues
Statement of Activities
Change in Net Position $282,899 (Government-Wide)
As compared to $132,894 for FY 2014
Governmental Activities $633,747 Business-Type Activities $(350,848)
See page 11 of the audit report
Balance Sheet
Total Assets $ 6,098,830Total Liabilities
2,016,845Total deferred inflows of resources
33,188Fund Balances
Assigned $1,835,897Unassigned 2,212,900Total Fund Balances
$4,048,797
Governmental Funds
Governmental Funds include: General and Capital ProjectsSee page 12 of the audit report
Statement of Revenues, Expenditures and Changes in Fund Balances
Total Revenues $4,592,385
Total Expenditures 3,858,704
Excess of Revenues over Expenditures $ 733,681
Governmental Funds
Governmental Funds include: General and Capital Projects See page 13 of the audit report
Statement of Revenues, Expenditures and Changes in Fund Balances
Excess of Revenues and Other Financing SourcesOver Expenditures and Other Uses $733,681
Adjustments for the Statement of Activities Capital outlay 206,780 Depreciation expense (403,691) Compensated absences (8,399) Debt service expenditures 91,630 Net pension adjustment 13,746
Change in Net Position of Governmental Activities $633,747
Governmental Funds
Governmental Funds include: General and Capital ProjectsSee page 13 of the audit report
Reconciliation of Fund Balance to Net Position of Governmental Activities
Fund balances - governmental funds 4,048,797$
Amounts reported for governmental activities in thestatement of net assets are different because:
Capital assets used in governmental activities are not financial resources, therefore are not reported in the funds
Property and equipment, net 6,960,632
Deferred outflows of resources 117,082
Long-term liabilities are not due and payable in the current period and therefore, are not reported in the funds
Long-term debt (440,597)Compensated absences (113,361) Net pension liability (747,377)
Deferred inflows of resources (81,808)
Net position - governmental activities 9,743,368$
See page 14 of the audit report
Property Taxes Income Taxes Intergov Service Charges Other
$1,936,173
$584,297
$1,112,610
$279,549
$419,901
$2,037,030
$638,915
$1,213,114
$309,052$394,274
Governmental Fund Types -General & Capital Projects Funds
REVENUES
FY 2014 FY 2015 See page 13 of the audit report
Totals:FY2015 $4,592,385FY2014 $4,332,530
$894,702
$1,051,356
$1,825,982
$176,667$20,749 $60,641
$17,146
$954,357
$1,083,857
$1,397,905
$175,269 $125,123 $105,737
$16,456
Governmental Fund Types -General & Capital Projects Funds
EXPENDITURES
FY 2014 FY 2015 See page 13 of the audit report
Totals:FY2015 $3,858,704FY2014 $4,047,423
Operating Revenue Operating Expense Operating Income/ (Loss)
Change in net position
$1,366,711
$1,274,747
$91,964 $50,213
$1,428,443 $1,374,375
$54,068 $11,751
FY14 FY15
See page 16 of the audit report
7.8% increase
4.5% increase
Statement of Operations – Water(Proprietary Fund -Enterprise)
Operating Revenue Operating Expense Operating Income / (Loss)
Change in net posi-tion
$1,328,851
$1,765,915
$(437,064) $(488,653)
$1,443,307
$1,754,273
$(310,966) $(362,599)FY14 FY15
See page 16 of the audit report
Less than 1%
decrease
8.6% increase
Statement of Operations – Sewer(Proprietary Fund - Enterprise)
Operating expenses include depreciation expense as follows:
Water Fund - $545,005 Sewer Fund - $945,248
See page 16 of the audit report
BUDGET TO ACTUAL – GENERAL FUND
BUDGET (Original
)
BUDGET (Final)
ACTUAL VARIANCE
REVENUES $4,046,200
$4,384,200
$4,549,710
$165,510
EXPENDITURES
$3,695,20
0
$3,889,500
$3,657,879
231,621
TOTAL OTHER FINANCING SOURCES (USES)
($351,000
)
($494,700) ($494,700)
$ -
NET CHANGE IN FUND BALANCE
$ - $ - $397,131 $397,131
See page 37 & 39 of the audit report
QUESTIONS?
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