Charter Township of Genesee - Michigan

[Pages:58]Charter Township of Genesee

Genesee County

Annual Financial Statements and

Auditors' Report December 31, 2007

Table of Contents

Section

1

List of Elected and Appointed Officials

2

Independent Auditors' Report

3

Management's Discussion and Analysis

4

Basic Financial Statements

Government-wide Financial Statements Statement of Net Assets Statement of Activities

Fund Financial Statements Governmental Funds Balance Sheet Reconciliation of Fund Balances of Governmental Funds to Net Assets of Governmental Activities Statement of Revenues, Expenditures and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities

Proprietary Funds Statement of Net Assets Statement of Revenues, Expenses and Changes in Fund Net Assets Statement of Cash Flows

Fiduciary Funds Statement of Assets and Liabilities

Notes to Financial Statements

Page 1 ? 1 2 ? 1 3 ? 1

4 ? 1 4 ? 2

4 ? 3 4 ? 4 4 ? 5 4 ? 7

4 ? 8 4 ? 10 4 ? 11

4 ? 13 4 ? 14

Section

5

Required Supplemental Information

Budgetary Comparison Schedule General Fund

6

Other Supplemental Information

Nonmajor Governmental Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances

Page

5 ? 1

6 ? 1 6 ? 2

Charter Township of Genesee

List of Elected and Appointed Officials December 31, 2007

Township Officials Scott Streeter ? Supervisor

Charles Marshall ? Clerk Donald Becker ? Treasurer Richard Burrus ? Trustee

Helen Oliver ? Trustee Ronald Shamel ? Trustee Christine White - Trustee

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Independent Auditors' Report

3023 Davenport Saginaw, MI 48602 Phone (989) 793-9830 / (800) 968-0010 Fax (989) 793-0186

Members of the Township Board Charter Township of Genesee

We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of Charter Township of Genesee as of and for the year ended December 31, 2007, which collectively comprise the Township's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Township's management. Our responsibility is to express opinions on these financial statements based on our audit.

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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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 discretely presented component unit, each major fund, and the aggregate remaining fund information of Charter Township of Genesee as of December 31, 2007 and the respective changes in financial position and cash flows, where applicable, thereof, for the year then ended in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated June 3, 2008 on our consideration of the Charter Township of Genesee'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 Governmental Auditing Standards and should be considered in assessing the results of our audit.

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The management's discussion and analysis and budgetary comparison information identified in the table of contents are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise Charter Township of Genesee's basic financial statements. The accompanying other supplemental information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

June 3, 2008 Saginaw, Michigan

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Charter Township of Genesee

Management's Discussion and Analysis

As management of the Charter Township of Genesee, we offer readers of the Charter Township of Genesee's financial statements this narrative overview and analysis of the financial activities of the Charter Township of Genesee for the fiscal year ended December 31, 2007.

Financial Highlights

The assets of the Charter Township of Genesee exceeded its liabilities at the close of the most recent fiscal year by $36,151,821 (net assets). Of this amount, $8,090,076 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors.

The government's total net assets increased by $926,506. This increase is attributable to the net effect of a prior period adjustment of $1,896,391 offset by a current year net assets decrease of $969,885. The prior period adjustment is comprised of tax revenue and payroll expenses not recognized in the proper year. The current year decrease is attributable to $655,892 utilized in the construction of new township buildings and a $324,492 shortfall caused by a decrease in interest and tax revenues in the proprietary activities of the Township. Using this Annual Report

This annual report consists of a series of financial statements. The statement of net assets and the statement of activities provide information about the activities of the Township as a whole and present a longer-term view of the Township's finances. This longerterm view uses the accrual basis of accounting so that it can measure the cost of providing services during the current year, and whether the taxpayers have funded the full cost of providing government services.

The fund financial statements present a short-term view; they tell us how the taxpayers' resources were spent during the year, as well as how much is available for future spending. Fund financial statements also report the Township's operations in more detail than the government-wide financial statements by providing information about the Township's most significant funds. The fiduciary fund statements provide financial information about activities for which the Township acts solely as a trustee or agent for the benefit of those outside of the government.

Notes to the financial statements. The notes provide additional information that is essential for 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 4-14 through 4-25 of this report.

Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information of the Charter Township of Genesee. The supplementary information can be found on pages 5-1 through 5-2 of this report.

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The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 6-1 through 6-2 of this report.

Government-wide Financial Analysis

As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the Charter Township of Genesee, assets exceeded liabilities by $36,151,821 at the close of the most recent fiscal year.

By far the largest portion of the Charter Township of Genesee's net assets (77 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment); less any related debt used to acquire those assets that is still outstanding. The Charter Township of Genesee uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Charter Township of Genesee'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.

Charter Township of Genesee's Net Assets

Governmental

Activities

2007

2006

Business-Type

Activities

2007

2006

Total

2007

2006

Current and other assets Capital assets

$ 1,614,934 $ 2,404,012 $ 8,290,191 $ 8,518,782 $ 9,905,125 $ 10,922,794 5,503,703 5,526,129 24,152,538 24,379,925 29,656,241 29,906,054

Total assets

7,118,637 7,930,141 32,442,729 32,898,707 39,561,366 40,828,848

Long-term liabilities outstanding Other liabilities

313,745 882,249

385,186 2,873,310

1,055,000 1,158,551

1,517,311 827,724

1,368,745 2,040,800

1,902,497 3,701,034

Total liabilities

1,195,994 3,258,496 2,213,551 2,345,035 3,409,545 5,603,531

Invested in capital assets, net of related debt Restricted Unrestricted

5,148,643 22,146

751,854

5,055,847 33,808

(418,010)

22,635,227 255,729

7,338,222

22,400,236 667,418

7,486,016

27,783,870 277,875

8,090,076

27,456,083 701,226

7,068,006

Total net assets

$ 5,922,643 $ 4,671,645 $ 30,229,178 $ 30,553,670 $ 36,151,821 $ 35,225,315

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