Central Midlands Council of Governments

Report to the

Board of Directors

June 30, 2017

 

508 HAMPTON STREET, 1ST FLOOR • COLUMBIA, SOUTH CAROLINA 29201 • 803‐799‐5810 • 866‐799‐5810 • www.mjcpa.com 

MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 

To the Board of Directors Central Midlands Council of Governments Columbia, South Carolina We are pleased to present this report related to our audit of the financial statements of Central Midlands Council of Governments (Council) for the year ended June 30, 2017. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for Central Midlands Council of Governments' financial reporting process. This report is intended solely for the information and use of the Board of Directors and management and is not intended to be and should not be used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have regarding this report. We appreciate the opportunity to continue to be of service to Central Midlands Council of Governments. Columbia, South Carolina December 1, 2017  

Contents Required Communications 1 - 2 Summary of Accounting Estimates 3 Summary of Recorded Audit Adjustments 4 Certain Written Communications Between Management and Our Firm Representation Letter 5 - 11

Required Communications Generally accepted auditing standards (AU-C 260, The Auditor’s Communication With Those Charged With Governance) require the auditor to promote effective two-way communication between the auditor and those charged with governance. Consistent with this requirement, the following summarizes our responsibilities regarding the financial statement audit as well as observations arising from our audit that are significant and relevant to your responsibility to oversee the financial reporting process.

Area Comments Our Responsibilities with Regard to the Financial Statement Audit

Our responsibilities under auditing standards generally accepted in the United States of America have been described to your in our arrangement letter dated June 26, 2017. Our audit of the financial statements does not relieve management or those charged with governance of their responsibilities which are also described in that letter.

Overview of the Planned Scope and Timing of the Financial Statement Audit

We have verbally discussed the planned scope and timing of our audit and have discussed with you our identification of and planned audit response to significant risks of material misstatement.

Accounting Policies and Practices

Preferability of Accounting Policies and Practices Under generally accepted accounting principles, in certain circumstances, management may select among alternative practices. In our view, in such circumstances, management has selected the preferable accounting practice. Adoption of, or Change in, Accounting Policies Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Council. The GASB issued Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions in June 2015. This Statement replaces the requirements of Statement 45 and requires governments to report a liability on the face of the financial statements for the OPEB that they provide. Statement 75 requires governments in all types of OPEB plans to present more extensive note disclosures and required supplementary information (RSI) about their OPEB liabilities. Among the new note disclosures is a description of the effect on the reported OPEB liability of using a discount rate and a healthcare cost trend rate that are one percentage point higher and one percentage point lower than assumed by the government. The new RSI includes a schedule showing the causes of increases and decreases in the OPEB liability and a schedule comparing a government's actual OPEB contributions to its contribution requirements. The requirements of this Statement are effective for financial statements for reporting periods beginning after June 15, 2017. Significant or Unusual Transactions There are no significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Management’s Judgments and Accounting Estimates Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is on the attached “Summary of Accounting Estimates”. Basis of Accounting These financial statements were prepared on the assumption that the District will continue as a going concern.

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Area Comments Audit Adjustments Audit adjustments recorded by the District are shown on the attached

“Summary of Recorded Audit Adjustments.” Uncorrected Misstatements There were no uncorrected misstatements. Other Information in Documents Containing Audited Financial Statements

Our responsibility for other information in documents containing the Council’s audited financial statements is to read the information and consider whether its content or manner of its presentation is materially inconsistent with the financial information covered by our auditor’s report or whether it contains a material misstatement of fact. Our responsibility for other information in documents containing the Council’s financial statements and our auditor’s report do not extend beyond the financial information referred to in our auditor’s report. We are not aware of any other documents that contain the audited financial statements.

Disagreements with Management We encountered no disagreements with management over the

application of significant accounting principles, the basis for management’s judgments on any significant matters, the scope of the audit or significant disclosures to be included in the financial statements.

Consultations with Other Accountants We are not aware of any consultations management had with other

accountants about accounting or auditing matters. Significant Issues Discussed with Management No significant issues arising from the audit were discussed or were the

subject of correspondence with management. Difficulties Encountered Performing the Audit We did not encounter any difficulties in dealing with management

during the audit. Letter Communicating Significant Deficiencies and Material Weaknesses

We have identified no material weaknesses during our audit of the financial statements. This communication is part of the Single Audit section in the June 30, 2017, Financial and Compliance report.

Certain Written Communications Between Management and Our Firm

Copies of certain written communications between management and our Firm are on pages 5 - 11 of this document.

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Central Midlands Council of Governments Summary of Accounting Estimates

Year Ended June 30, 2017 Accounting estimates are an integral part of the preparation of financial statements and are based upon management’s current judgment. This process used by management encompasses their knowledge and experience about past and current events and assumptions about future events. You may wish to monitor throughout the year the process used to compute and record these accounting estimates. The following describes the significant accounting estimates reflected in the Council’s June 30, 2017, financial statements: Area Accounting Policy Estimation Process Comments

Property and Equipment Depreciation Estimated Useful Life Should be consistent from year to year

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2017 Central Midlands Council of GovernmentsYear End: 06/30/2017

Trial balance

Date: 07/01/16 To 06/30/17

Number Date Name Account No Reference Debit Credit Net Income (Loss) Amount Chg

Net Income (Loss) Before Adjustments (26,244.53 )

1 06/30/17 Transfer To/(From) General Fund 100-100-3120-00 GF01 369.00

1 06/30/17 Due (To)/From 208 Planning 9/30/2010100-305-2015-00 GF01 369.00

1 06/30/17 Due (To)/From General Fund 305-100-2015-00 SRF04 369.00

1 06/30/17 Due From Federal Government 305-600-1200-00 SRF04 369.00

1 06/30/17 Transfer To/(From) General Fund 305-600-3120-00 SRF04 369.00

1 06/30/17 Federal Revenue 305-600-3299-00 SRF04 369.00

PBC - To recrod revenue

1,107.00 1,107.00 (26,613.53 ) (369.00 )

2 06/30/17 Unearned Local Revenue 100-100-2480-00 GF01 8,080.01

2 06/30/17 Due (To)/From FTA SC-90-X249-00 100-646-2015-00 GF01 8,080.01

2 06/30/17 Due (To)/From General Fund 646-100-2015-00 SRF02 8,080.01

2 06/30/17 Unearned Local Revenue 646-800-2480-00 SRF02 8,080.01

To reclass unearned revenue

16,160.02 16,160.02 (26,613.53 ) 0.00

17,267.02 17,267.02 (26,613.53 ) (369.00 )

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