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33rd District Court

Financial Report

with Supplemental Information

December 31, 2016

33rd District Court

Contents

Report Letter 1-2

Management's Discussion and Analysis 3-9

Basic Financial Statements

Statement of Net Position/Governmental Funds Balance Sheet 10-11

Statement of Activities/Governmental Fund Revenue, Expenditures, and Changesin Fund Balance 12-13

Statement of Fiduciary Net Position 14

Notes to Financial Statements15-29

Required Supplemental Information 30

Budgetary Comparison Schedule - General Fund 31

Budgetary Comparison Schedule - Sobriety Court Program Fund 32

Budgetary Comparison Schedule - Chemical Awareness Program Fund 33

Budgetary Comparison Schedule - Work Program Fund 34

OPEB System Schedule 35

Other Supplemental Information 36

Fines and Costs Fund - Schedule of Changes in Liabilities 37

Schedule of District Control Units - Fines Collected Over Actual General FundBudget Expenditures 38

General Fund - Schedule of Amounts Payable to District Control Units 39

Independent Auditor's Report

To the Board of Directors33rd District Court

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, each major fund,and the aggregate remaining fund information of the 33rd District Court (the "Court") as of and for theyear ended December 31, 2016, and the related notes to the financial statements, which collectivelycomprise the 33rd District Court's basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includesthe design, implementation, and maintenance of internal control relevant to the preparation and fairpresentation of financial statements that are free from material misstatement, whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conductedour audit in accordance with auditing standards generally accepted in the United States of America.Those standards require that we plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity’spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenessof the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluatingthe appropriateness of accounting policies used and the reasonableness of significant accountingestimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, each major fund, and the aggregate remainingfund information of the 33rd District Court as of December 31, 2016, and the respective changes in itsfinancial position for the year then ended, in accordance with accounting principles generally accepted inthe United States of America.

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jomariel.finn

Detroit

jomariel.finn

New Stamp

To the Board of Directors33rd District Court

Other Matters

Required Supplemental Information

Accounting principles generally accepted in the United States of America require that the management'sdiscussion and analysis, the major fund budgetary comparison schedules, and the OPEB system schedule,as identified in the table of contents, be presented to supplement the basic financial statements. Suchinformation, although not a part of the basic financial statements, is required by the GovernmentalAccounting Standards Board, which considers it to be an essential part of financial reporting for placingthe basic financial statements in an appropriate operational, economic, or historical context. We haveapplied certain limited procedures to the required supplemental information in accordance with auditingstandards generally accepted in the United States of America, which consisted of inquiries ofmanagement about the methods of preparing the information and comparing the information forconsistency with management's responses to our inquiries, the basic financial statements, and otherknowledge we obtained during our audit of the basic financial statements. We do not express an opinionor provide any assurance on the information because the limited procedures do not provide us withsufficient evidence to express an opinion or provide any assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise the Court's basic financial statements. The other supplemental information schedules, asidentified in the table of contents, are presented for the purpose of additional analysis and are not arequired part of the basic financial statements. The other supplemental information schedules have notbeen subjected to the auditing procedures applied in the audit of the basic financial statements and,accordingly, we do not express an opinion or provide any assurance on them.

March 28, 2017

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STATE OF MICHIGAN MICHAEL K. McNALLY

DISTRICT JUDGE

JAMES K. KERSTEN DISTRICT JUDGE

JENNIFER COLEMAN HESSON

DISTRICT JUDGE

33rd JUDICIAL DISTRICT COURT 19000 Van Horn Road

Woodhaven, Michigan 48183 Telephone: (734) 671-0201

Fax: (734) 671-0307

AMY ZAWACKI COURT ADMINISTRATOR

SHANE MACINTYRE SYSTEMS ADMINISTRATOR

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Management’s Discussion and Analysis (MD&A) Year Ended December 31, 2016

The management of the 33rd District Court (the “Court”) presents this narrative overview and analysis of the financial activities of the Court for the fiscal year ended December 31, 2016. The Court encourages readers to consider the information presented here in conjunction with additional information found within the body of the audit. Financial Highlights The 2016 beginning budget for the expenditures of the Court was $2,217,150, which was an increase of $11,000 from the previous year. Total caseload increased by around 200 total cases from 2015, from 19,351 to 19,541. Felony cases increased by 12 percent, civil infraction cases saw a negligible increase, misdemeanor cases increased by 7 percent, and drunk driving cases decreased 10 percent. Cases filed in the civil division of the Court saw a 4 percent decrease. Fines, costs, and fees collected and returned to the district control units decreased by approximately 28 percent from 2015. Fines and costs collected and returned to Wayne County (the “County”) decreased by 43 percent from 2015, resulting primarily from the reduction of trucking fines and costs. Interest income is almost nonexistent. During 2016, the Court offered multiple electronic and telephonic payment options, including payments through Iyetek, the State of Michigan, and Municipal Payment Solutions (Munipay). Iyetek is an electronic ticket system used by all of the local police departments. Prior to September 2016, Iyetek allowed payments of fines and costs over the internet. Citizens using the Iyetek site for payment were charged a convenience fee along with the merchant fee charged by the credit card company. These fees were used to offset the costs of maintaining the electronic ticketing system. Iyetek discontinued its payment operations in September 2016. Prior to this, the Court collected $97,561 in fines and costs through this system. The Court also utilizes the State of Michigan’s website for payment of civil infractions and, more recently, misdemeanors. Merchant fees assessed for these payments are charged to the Court. However, civil infraction cases paid through the State’s website are automatically closed in the Court’s case management system, eliminating the need for court personnel to process the cases. In 2016, $144,653 was collected from 876 web payments through the State of Michigan. This is up by over $40,000 from 2015, likely due in part to Iyetek canceling its payment system.

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Management’s Discussion and Analysis (MD&A) (Continued) Year Ended December 31, 2016

Lastly, the Court has an agreement with Munipay for online and telephone credit card transactions at no cost to the Court. Munipay also operates an ATM in the courthouse for the convenience of clients, particularly those who have debit cards only. In 2016, the Court collected $416,244 from 2,598 payments through Munipay. This is up by $68,000 from 2015, again likely due in part to Iyetek canceling its payment system. In 2016, the Court’s collective bargaining agreements with both MAPE and POAM increased employees’ wages by 1 percent. The agreements expired in 2016, and the Court negotiated four-year successor agreements with both units. These new agreements provide for an increase of 2 percent in 2017, and 1.5 percent increases in 2018, 2019, and 2020. The Court revised its healthcare contribution, now paying the State hard caps instead of 76 percent of the costs. The court has finalized the majority of its technology upgrade, replacing the IBM AS400 (i-series) server with an IBM power 8 Server. The old AS400 had several hardware failures that halted all communications with JIS and stopped all court business. These repeated failures compelled the Court to purchase the new hardware earlier than anticipated. Currently, the security surveillance system has several video (BNC) ports that have failed, and it may need to be replaced in the next year or two. There are a few older printers that need to be replaced, but overall, there shouldn’t be any large expenditures needed to maintain the information system. In 2015, the Court entered into a contract with Temperature Control, Inc. for the removal, renovation, and replacement of the HVAC system, which serves the north half of the court building. The work includes removing and replacing existing ductwork, demolishing the boilers and piping, and installing three Johnson Controls Air Handling Units. The final cost of this project was $271,000. This project was funded by the Capital Projects Fund and was completed in March 2016. In late 2016, the Court began replacing carpeting and wall coverings throughout the courthouse. Since this has not been done for over 20 years, much of the carpet is extremely worn and wallpaper is falling from the walls. The Court began the project in the probation area, as it had the most need with loose and ripped carpet creating an imminent tripping hazard. The Court will continue the project throughout the courthouse, as the budget and time allows. These updates have been and will continue be funded from the General Fund, and will continue throughout 2017, and possibly into 2018, so long as the funds are available.

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Overview of Financial Statements

This annual report consists of four parts - management’s discussion and analysis (this section), the basic financial statements, required supplemental information, and other supplemental information. The Court’s basic financial statements include information that presents two different views of the Court. The basic financial statements can be found on pages 10-14. The first six columns of the financial statements include information on the Court’s General Operating Fund, Special Revenue Funds, and Capital Projects Funds under the modified accrual method. The Special Revenue Funds include the Sobriety Court Program Fund, Chemical Awareness Program Fund, and Work Program Fund. The Capital Projects Funds include the Court Technology Fund and Capital Projects Fund. These fund financial statements focus on current financial resources and provide a more detailed view of the accountability of the Court’s sources and uses of these funds.

The adjustment column of the financial statements represents the adjustments necessary to convert the fund financial statements to the government-wide financial statements under the full-accrual method. The government-wide financial statement column provides both long-term and short-term information about the Court’s overall financial status. The statement of net position and the statement of activities provide information about the activities of the Court as a whole and present a longer-term view of the Court’s finances. These statements tell how these services were financed in the short term, as well as what remains for future spending. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Court is improving or deteriorating. The Court also has two fiduciary funds, which include the Fines and Costs Fund and the JIS Bond Fund. The statement of fiduciary net position can be found on page 14. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The notes provide additional information that is essential to a full understanding of the information provided in the annual report. The notes to the financial statements can be found on pages 15-29 of this report. The financial statements are followed by a section of required and other supplemental information that further explains and supports the information contained in the financial statements. The required and other supplemental information can be found on pages 30-39 of this report.

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Court-wide Financial Analysis Net position may serve over time as a useful indicator of a government’s financial position. In the case of the Court, assets exceeded liabilities by $2,954,679 as of December 31, 2016. The largest portion of the Court’s net position reflects its investment in capital assets (e.g., land and improvements, buildings and improvements, vehicles, and furniture and equipment) less any related debt used to acquire those assets that is still outstanding. The Court uses these capital assets to provide services to the public; consequently, these assets are not available for future spending. Although the Court’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay the debt, if present, must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. The Court’s financial position is the product of a number of transactions, including the net results of its activities, the payment of debt, the acquisition and disposal of capital assets, and the depreciation of capital assets. Net Position as of December 31, 2015 and 2016

33rd Dis trict Court 33rd Dis trict CourtNet P os ition Net P os ition

December 31, 2015 December 31, 2016Net pos ition compa rison - 2015 to 2016

As s etsCurrent a s sets 904,902$ 667,783$ Noncurrent a s sets 2,610,784 2,656,465

Tota l a s sets 3,515,686 3,324,248

LiabilitiesCurrent lia bilities 458,322 284,242 Noncurrent lia bilities 77,069 85,327

Tota l lia bilities 535,391 369,569

Net Pos itionNet inves tment in ca pita l a s sets 2,610,784 2,656,465 Unres tricted 369,511 298,214

Tota l net pos ition 2,980,295$ 2,954,679$

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The following table presents a summary of the statement of activities for the fiscal years ended December 31: Changes in 33rd District Court Net Position:

2015 2016

RevenueGenera l revenue 1,970,378$ 1,984,478$ Cha rges for services 267,710 277,151 Opera ting gra nts a nd contributions 221,291 235,846

Tota l revenue 2,459,379 2,497,475

Expens es - Court services 2,386,046 2,386,390

Change in Net Pos ition Before Special Items 73,333 111,085

Required Dis tributions to DCUs -Deficiency of revenue over expenditures (188,818) (136,701)

Change in Net Pos ition After Special Items (Deficit) (115,485)$ (25,616)$

Comments on Budget Comparisons • The Court’s total General Fund revenue for the fiscal year ended December 31, 2016 was

$2,171,640.

• General Fund budgeted revenue compared to actual revenue varied by approximately 2.1 percent, with the ending actual balance being $48,610 less than budget.

• The total cost of all programs and services was $2,038,566. General Fund budgeted

expenditures to actual varied from line item to line item, with the ending actual balance being $178,584, or approximately 8.1 percent, less than budget.

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General Fund Revenue The majority of revenue was derived from the budget allocations from the funding units supported by the collection of fines, costs, and fees. Some miscellaneous revenue is received from copy fees and marriage fees and reimbursement for court-appointed attorneys. Interest income has become negligible. Budget Allocation

A total of 51 percent of the Court’s overall budget is devoted to salary and wages, and 18 percent covers the employee benefits. Acquisition and maintenance of the Court’s fixed assets, including building maintenance, computer, library, utilities, janitorial, insurance, and capital outlay, accounts for 16 percent of the budget. The next largest amount of the budget is expended for trial services, including court-appointed attorneys, interpreters, security screening, visiting judges, labor counsel, and jury and witness fees, which total 5 percent. Professional fees make up 4 percent of the budget. Consumables including office supplies, postage, forms, and general expense, make up 4 percent of the budget. The remaining 2 percent is committed to miscellaneous items, such as uniform cleaning, training, dues, and the like. Budgetary Implications

The General Fund operating budget is prepared by court administration and approved by the Court’s seven District Control Units. The budget is allocated to the District Control Units based upon an agreed-upon formula. The budget is affected by a number of factors that are outside the Court’s control. The number and type of cases that are filed governs the workload and the revenue, but the Court has no power or authority, nor should it, to manipulate these figures to its advantage. The collective bargaining agreements were settled at the end of 2016. These new agreements provide for an increase of 2 percent in 2017, and 1.5 percent increases in 2018, 2019, and 2020. The Court revised its healthcare contribution, now paying the State hard caps instead of 76 percent of the costs, which slightly reduces the Court’s costs. The Court has the added pressure of mandates at the state level, in reporting requirements, caseflow time guideline compliance, and public satisfaction. The Court is also under pressure to provide greater outside and public access to a growing amount of data. Capital Asset Activity

By the end of 2016, the Court had invested $133,969 in HVAC renovations and building improvements, $1,970 in furniture and equipment, and $45,519 in computer equipment. The Court disposed of obsolete computer equipment that originally cost $13,036 and other fully depreciated capital assets with an original cost of $2,395. More detailed information about capital assets can be found in Note 4 to the financial statements. Total depreciation expense for the year was $135,777. No new debt was necessary to acquire these capital assets.

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33rd District Court capital assets:

2016 2015

Accumula ted Net Book Net BookCos t Deprecia tion Va lue Va lue

La nd 50,000$ -$ 50,000$ 50,000$

Cons truction in progres s - - - 195,954 La nd improvements 230,097 129,680 100,417 108,212 Furniture a nd equipment 660,061 651,547 8,514 9,853 Computers 215,599 107,060 108,539 84,470 Vehicles 55,462 55,462 - - Buildings a nd improvements 4,798,276 2,409,281 2,388,995 2,162,295

Tota l 6,009,495$ 3,353,030$ 2,656,465$ 2,610,784$

Long-term Debt Activity

Long-term debt activity totaled $43,912, which represents compensated absences outstanding at December 31, 2016. This is an increase of $5,006 from last year. More detailed information about the Court’s long-term liabilities is presented in Note 6 to the financial statements.

2015 2016

Compensated absences 38,906$ 43,912$

Questions regarding this report should be directed to the court administrator by phone at (734) 671-0201, ext. 250 or by mail at 19000 Van Horn Road, Woodhaven, Michigan 48183.

33rd District Court

Modified Accrual Basis

General FundSobriety CourtProgram Fund

ChemicalAwareness

Program FundWork Program

Fund

CourtTechnology

Fund

Assets

Cash and investments $ 160,854 $ 80,030 $ 2,632 $ 21,038 $ 66,130Receivables - 25,977 - - -Due from fiduciary fund 168,044 10 555 1,860 8,991Due from other funds 15,004 - - - -Prepaid expenses and other assets 44,808 - - - -Capital assets:

Assets not subject to depreciation - - - - -Assets subject to depreciation - - - - -

Total assets 388,710 106,017 3,187 22,898 75,121

Liabilities and Equity

LiabilitiesAccounts payable 15,740 7,116 600 450 71,009Due to District Court units 131,136 - - 5,565 -Due to fiduciary funds 11 - - - -Due to other funds - 7,700 421 6,883 -Accrued liabilities and other 44,631 - - - -Noncurrent liabilities:

Due within one year - Compensatedabsences - - - - -

Due in more than one year:Compensated absences - - - - -Net OPEB obligation - - - - -

Total liabilities 191,518 14,816 1,021 12,898 71,009

Equity - Fund balanceNonspendable for prepaids 44,808 - - - -Committed for unemployment benefits 20,000 - - - -Committed for court programs 105,192 - - - -Committed for court technology - - - - 4,112Committed for probation programs - 91,201 2,166 10,000 -Committed for capital projects - - - - -Committed for retiree medical benefits 27,192 - - - -

Total equity 197,192 91,201 2,166 10,000 4,112

Total liabilities and equity $ 388,710 $ 106,017 $ 3,187 $ 22,898 $ 75,121

Net position:Net investment in capital assets

Unrestricted

Total net position

The Notes to Financial Statements are anIntegral Part of this Statement. 10

Statement of Net Position/Governmental Funds Balance SheetDecember 31, 2016

ModifiedAccrual Basis

Capital ProjectsFund Total

Adjustments(Note 10)

Statement ofNet Position

$ 82,228 $ 412,912 $ - $ 412,912- 25,977 - 25,977

4,626 184,086 - 184,086- 15,004 (15,004) -- 44,808 - 44,808

- - 50,000 50,000- - 2,606,465 2,606,465

86,854 682,787 2,641,461 3,324,248

- 94,915 - 94,915- 136,701 - 136,701- 11 - 11- 15,004 (15,004) -- 44,631 - 44,631

- - 7,984 7,984

- - 35,928 35,928- - 49,399 49,399

- 291,262 78,307 369,569

- 44,808 (44,808) -- 20,000 (20,000) -- 105,192 (105,192) -- 4,112 (4,112) -- 103,367 (103,367) -

86,854 86,854 (86,854) -- 27,192 (27,192) -

86,854 391,525 (391,525) -

$ 86,854 $ 682,787

2,656,465 2,656,465298,214 298,214

$ 2,954,679 $ 2,954,679

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33rd District Court

Modified Accrual Basis

General Fund

SobrietyCourt

Program Fund

ChemicalAwareness

Program FundWork

Program Fund

CourtTechnology

FundCapital

Projects Fund

RevenueIntergovernmental $ 1,984,478 $ - $ - $ - $ - $ -Standardization payments 137,172 - - - - -Jury fee reimbursement 5,013 - - - - -Program fees 39,998 6,794 6,683 37,076 125,609 56,012Grants - 115,977 - - - -

Miscellaneous 4,979 - - - - -

Total revenue 2,171,640 122,771 6,683 37,076 125,609 56,012

Expenditures/ExpensesWages and benefits 1,432,923 26,454 1,506 24,582 - -Operating expenses 552,704 76,481 5,400 6,929 112,555 -

Capital outlay 52,939 - - - 45,519 83,000

Total expenditures/expenses 2,038,566 102,935 6,906 31,511 158,074 83,000

Excess (Deficiency) of Revenue OverExpenditures 133,074 19,836 (223) 5,565 (32,465) (26,988)

Other Financing Sources (Uses)Transfer from General Fund - - 1,938 - - -Transfer to Chemical Awareness

Program (1,938) - - - - -

Distributions to DCUs (131,136) - - (5,565) - -

Net Change in Fund Balances/NetPosition - 19,836 1,715 - (32,465) (26,988)

Fund Balances/Net Position -Beginning of year 197,192 71,365 451 10,000 36,577 113,842

Fund Balances/Net Position -End of year $ 197,192 $ 91,201 $ 2,166 $ 10,000 $ 4,112 $ 86,854


Statement of Activities/Governmental Fund Revenue, Expenditures,and Changes in Fund Balance

Year Ended December 31, 2016

Total Adjustments

(Note 10)Statement of

Activities

$ 1,984,478 $ - $ 1,984,478137,172 - 137,172

5,013 - 5,013272,172 - 272,172115,977 (22,316) 93,661

4,979 - 4,979

2,519,791 (22,316) 2,497,475

1,485,465 11,079 1,496,544754,069 135,777 889,846181,458 (181,458) -

2,420,992 (34,602) 2,386,390

98,799 12,286 111,085

1,938 - 1,938

(1,938) - (1,938)

(136,701) - (136,701)

(37,902) 12,286 (25,616)

429,427 2,550,868 2,980,295

$ 391,525 $ 2,563,154 $ 2,954,679

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33rd District Court

Statement of Fiduciary Net PositionDecember 31, 2016

Fines and

Costs Fund JIS Bond Fund

AssetsCash and cash equivalents $ 230,722 $ 84,994Due from District Court Units 34,596 -

Due from primary government - 11

Total assets $ 265,318 $ 85,005

LiabilitiesMiscellaneous $ 17 $ -Due to other governmental units 81,215 -Due to primary government 184,086 -

Bonds payable - 85,005

Total liabilities $ 265,318 $ 85,005


33rd District Court

Notes to Financial StatementsDecember 31, 2016

Note 1 - Summary of Significant Accounting Policies

The accounting policies of the 33rd District Court (the "Court") conform to accountingprinciples generally accepted in the United States of America (GAAP) as applicable togovernmental units. The following is a summary of the significant accounting policiesused by the 33rd District Court:

Reporting Entity

The 33rd District Court was established in the state of Michigan. The State of Michiganis divided into judicial districts of the district court, each of which is an administrativeunit subject to the superintending control of the Supreme Court. The 33rd DistrictCourt has an appointed seven-member court management council that comprises arepresentative from each one of the member communities. The member communitiesinclude: City of Rockwood, City of Gibraltar, City of Woodhaven, City of Flat Rock,Grosse Ile Township, City of Trenton, and Brownstown Township. The accompanyingfinancial statements present the Court's financial position and results of operations.

Government-wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and thestatement of activities) report information on all of the nonfiduciary activities of theCourt. For the most part, the effect of interfund activity has been removed from thesestatements.

The statement of activities demonstrates the degree to which the direct expenses of agiven function or segment are offset by program revenue. Direct expenses are thosethat are clearly identifiable with a specific function or segment. Program revenueincludes: (1) charges to customers or applicants who purchase, use, or directly benefitfrom goods, services, or privileges provided by a given function or segment and (2)grants and contributions that are restricted to meeting the operational or capitalrequirements of a particular function or segment.

Separate financial statements are provided for governmental funds and fiduciary funds,even though the latter are excluded from the government-wide financial statements.Major individual governmental funds are reported as separate columns in the fundfinancial statements.

Measurement Focus, Basis of Accounting, and Financial StatementPresentation

The government-wide financial statements are reported using the economic resourcesmeasurement focus and the accrual basis of accounting, as are the fiduciary fund financialstatements. Revenue is recorded when earned and expenses are recorded when aliability is incurred, regardless of the timing of related cash flows. Grants and similaritems are recognized as revenue as soon as all eligibility requirements imposed by theprovider have been met.

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33rd District Court


Note 1 - Summary of Significant Accounting Policies (Continued)

Governmental fund financial statements are reported using the current financialresources measurement focus and the modified-accrual basis of accounting. Revenue isrecognized as soon as it is both measurable and available. Revenue is considered to beavailable if it is collected within the current period or soon enough thereafter to payliabilities of the current period. For this purpose, the Court considers revenue to beavailable if it is collected within 30-60 days of the end of the current fiscal period. Allother revenue items are considered to be available only when the cash is received bythe Court. Conversely, revenue collected after the period of availability is recorded as a"deferred inflow of resources."

Expenditures generally are recorded when a liability is incurred, as under accrualaccounting. However, debt service expenditures, expenditures relating to compensatedabsences, and claims and judgments are recorded only when payment is due.

When an expense is incurred for purposes for which both restricted and unrestrictednet position or fund balance are available, the Court's policy is to first apply restrictedresources. When an expense is incurred for purposes for which amounts in any of theunrestricted fund balance classifications could be used, it is the Court's policy to spendfunds in this order: committed, assigned, and unassigned.

The Court reports the following major governmental funds:

The General Fund (Operating Fund) is the Court's primary operating fund. Itaccounts for all financial resources of the Court, except those required to be accountedfor in another fund.

The Sobriety Court Program Fund is a special revenue fund funded through grantsand program fees that are used to fund court-designated programs to promote alcoholawareness.

The Chemical Awareness Program Fund is a special revenue fund funded throughprogram fees that are used to fund court-designated programs to promote drugawareness.

The Work Program Fund is a special revenue fund funded through program fees thatare used to fund the work program.

The Court Technology Fund is a capital projects fund funded through designated finesto keep the Court current with information technology.

The Capital Projects Fund is used to account for the financial resources to be usedfor the acquisition and construction of major capital facilities. The various communitiescomprising the 33rd District Court have agreed to place a portion of fines and costscollected into this fund to be used for the building and equipment of the Court.

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33rd District Court



Additionally, the Court reports the following fiduciary and agency activities:

The Fines and Costs Fund is an agency fund used to account for assets held by theCourt in a trustee capacity. Agency funds are custodial in nature (assets equal liabilities)and do not involve the measurement of results of operations.

The JIS Bond Fund is an agency fund that accounts for all appearance bonds andrestitution for criminal cases. The funds remaining in this fund are due to the defendantor payable to the clients for restitution.

Assets, Liabilities, and Net Position or Equity

Bank Deposits and Investments - Cash and cash equivalents include cash on hand,demand deposits, and short-term investments with a maturity of three months or lesswhen acquired. Investments are stated at fair value. The Court is authorized by itsgoverning board to invest in obligations of the U.S. Treasury, commercial paper, andmutual funds.

Receivables and Payables - In general, outstanding balances between funds arereported as "due to/from other funds." Activity between funds that are representative oflending/borrowing arrangements outstanding at the end of the fiscal year is referred toas "advances to/from other funds."

All receivables are shown as net of allowance for uncollectible amounts.

Prepaid Items - Certain payments to vendors reflect costs applicable to future fiscalyears and are recorded as prepaid items in both government-wide and fund financialstatements.

Capital Assets - Capital assets, which include property, building, equipment, andvehicles, are reported on the government-wide financial statements. Capital assets aredefined by the Court as assets with an initial individual cost of more than $1,500 and anestimated useful life in excess of one year. Such assets are recorded at historical cost orestimated historical cost if purchased or constructed. Donated capital assets arerecorded at estimated acquisition value at the date of donation.

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33rd District Court



Buildings, equipment, and vehicles are depreciated using the straight-line method overthe following useful lives:

Land improvements 5 to 30 yearsBuildings 30 to 40 yearsBuilding additions 30 to 40 yearsBuilding improvements 15 to 40 yearsFurniture and equipment 5 to 12 yearsComputers 5 yearsVehicles 5 years

Compensated Absences (Vacation and Sick Leave) - It is the Court's policy topermit employees to accumulate earned but unused sick and vacation pay benefits.Compensated absences either vest or accumulate and are accrued when they areearned. Sick time is allowed to accumulate up to a maximum of 60 days. A liability forthese amounts is reported on the government-wide financial statements.

Deferred Outflows/Inflows of Resources - In addition to assets, the statement offinancial position will sometimes report a separate section for deferred outflows ofresources. This separate financial statement element represents a consumption of netposition that applies to a future period and so will not be recognized as an outflow ofresources expenditure until then. For the fiscal year ended December 31, 2016, therewere no deferred outflows of resources.

In addition to liabilities, the statement of financial position will sometimes report aseparate section for deferred inflows of resources. This separate financial statementelement represents an acquisition of net position that applies to a future period and sowill not be recognized as an inflow of resources until that time. During fiscal year 2016,there were no deferred inflows of resources.

Other Postemployment Benefit Costs - The Court offers retiree healthcare benefitsto retirees. The Court estimates the annual required contribution (ARC) necessary tofund the obligation over the remaining amortization period. In the governmental funds,OPEB costs are recognized as contributions are made. For the government-widestatements, the Court reports the full accrual cost equal to the current year requiredcontribution, adjusted for interest and “adjustment to the ARC” on the beginning of yearunderpaid amount, if any.

Fund Balance - In the fund financial statements, governmental funds report thefollowing components of fund balance:

Nonspendable: Amounts that are not in spendable form or are legally orcontractually required to be maintained intact

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33rd District Court



Restricted: Amounts that are legally restricted by outside parties, constitutionalprovisions, or enabling legislation for use for a specific purpose

Committed: Amounts that have been formally set aside by the court managementcouncil for use for specific purposes. Commitments are made and can be rescindedonly via resolution of the court management council.

Assigned: Intent to spend resources on specific purposes expressed by the courtmanagement council

Unassigned: Amounts that do not fall into any other category above. This is theresidual classification for amounts in the General Fund and represents fund balancethat has not been assigned to other funds and has not been restricted, committed,or assigned to specific purposes in the General Fund. In other governmental funds,only negative unassigned amounts are reported, if any, and represent expendituresincurred for specific purposes exceeding the amounts previously restricted,committed, or assigned to those purposes.

Use of Estimates - The preparation of financial statements in conformity withaccounting principles generally accepted in the United States of America requiresmanagement to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosure of contingent assets and liabilities at the date of thefinancial statements and the reported amounts of revenue and expenses during theperiod. Actual results could differ from those estimates.

Note 2 - Stewardship, Compliance, and Accountability

Budgets are adopted on a basis consistent with generally accepted accounting principles.An annual appropriated budget is adopted for the General Fund and all special revenuefunds. All annual appropriations lapse at fiscal year end. Project-length financial plans areadopted for all capital projects funds; however, a formal budget is not adopted.

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33rd District Court


Note 2 - Stewardship, Compliance, and Accountability (Continued)

The Court presents a budget to the seven District Court Units (DCUs) for theirapproval and ratification before the fiscal year begins on January 1. Based onAdministrative Order No. 1997-6 of the Supreme Court, a court must submit itsproposed and appropriated annual budget and subsequent modifications to the statecourt administrator at the time of submission to or receipt from the local funding unit orunits. The budget must be in conformity with a uniform chart of accounts. If the localfunding unit requests that a proposed budget be submitted in line-item detail, the chiefjudge must comply with the request. If a budget has been appropriated in line-itemdetail, without prior approval of their funding units, courts may not transfer betweenline-item accounts to (a) create new personnel positions or to supplement existing wagescales or benefits, except to implement across-the-board increases that were granted toemployees of the funding unit after the adoption of the Court's budget at the same rate,or (b) reclassify an employee to a higher level of an existing category. Courts must notifya local court management council of transfers between lines within 10 business days ofthe transfer.

Upon their ratification, the DCUs will pay to the Court on a monthly basis 1/12th of thecost of the annual budget costs, which are allocated to each of the DCUs based on afive-year caseload average.

The Court maintains a formalized encumbrance system. Encumbrances representcommitments related to unperformed contracts for goods and services. Encumbranceaccounting - under which purchase orders, contracts, and other commitments for theexpenditure of resources are recorded to reserve that portion of the applicableappropriation - is utilized in the General Fund. Encumbrances outstanding at year endare reported as reservations of fund balances and do not constitute expenditures orliabilities because the commitments will be honored during the subsequent year. Therewere no encumbrances outstanding at year end.

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33rd District Court


Note 2 - Stewardship, Compliance, and Accountability (Continued)

Excess of Expenditures Over Appropriations in Budgeted Funds - During theyear, the Court incurred expenditures in excess of amounts budgeted in the GeneralFund, the Work Program Fund, and the Sobriety Court Program Fund as follows:

Budget Actual Variance

Office equipment - General Fund $ 4,110 $ 4,421 $ (311)Professional fees - General Fund 80,000 87,202 (7,202)Library expense - General Fund 7,800 8,440 (640)Rental equipment - General Fund 6,000 7,073 (1,073)Personnel - Sobriety Court Program Fund 22,601 26,454 (3,853)Car allowance - Sobriety Court Program

Fund - 959 (959)Monitoring - Sobriety Court Program Fund 7,745 9,193 (1,448)Testing - Sobriety Court Program Fund 48,929 52,293 (3,364)Defense attorney - Sobriety Court

Program Fund 4,219 4,525 (306)Vehicle - Work Program Fund 3,000 4,106 (1,106)Supplies - Work Program Fund 2,000 2,301 (301)

The unfavorable variances were caused by unanticipated expenditures that becamenecessary during the year.

Note 3 - Deposits and Investments

Michigan Compiled Laws Section 129.91 (Public Act 20 of 1943, as amended) authorizeslocal governmental units to make deposits and invest in the accounts of federally insuredbanks, credit unions, and savings and loan associations that have offices in Michigan. Thelaw also allows investments outside the state of Michigan when fully insured. The localunit is allowed to invest in bonds, securities, and other direct obligations of the UnitedStates or any agency or instrumentality of the United States; repurchase agreements;bankers’ acceptances of United States banks; commercial paper rated within the twohighest classifications, which matures not more than 270 days after the date of purchase;obligations of the State of Michigan or its political subdivisions, which are rated asinvestment grade; and mutual funds composed of investment vehicles that are legal fordirect investment by local units of government in Michigan.

The Court has designated PNC Bank for the deposit of its funds. The investment policyadopted by the board in accordance with Public Act 196 of 1997 has authorizedinvestment in bonds and securities of the United States government and bank accountsand CDs, but not the remainder of state statutory authority as listed above. The Court'sdeposits and investment policies are in accordance with statutory authority.

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33rd District Court


Note 3 - Deposits and Investments (Continued)

The Court's cash and investments are subject to custodial credit risk, which is examinedin more detail below:

Custodial Credit Risk of Bank Deposits - Custodial credit risk is the risk that in theevent of a bank failure, the Court's deposits may not be returned to it. The Court doesnot have a deposit policy for custodial credit risk. At year end, the Court has $764,844on deposit with PNC Bank, of which $514,844 was uninsured and uncollateralized. TheCourt believes that due to the dollar amounts of cash deposits and the limits of FDICinsurance, which is $250,000, it is impractical to insure all deposits. As a result, theCourt evaluates each financial institution with which it deposits funds and assesses thelevel of risk of each institution; only those institutions with an acceptable estimated risklevel are used as depositories.

Note 4 - Capital Assets

Capital asset activity of the Court for 2016 was as follows:

Governmental Activities

Balance January 1,

2016 Reclassifications Additions Disposals

Balance December 31,

2016

Capital assets not beingdepreciated:

Land $ 50,000 $ - $ - $ - $ 50,000

Construction in progress 195,954 (195,954) - - -

Subtotal 245,954 (195,954) - - 50,000

Capital assets being depreciated:Buildings and improvements 4,468,353 195,954 133,969 - 4,798,276Vehicles 55,462 - - - 55,462Furniture and equipment 660,486 - 1,970 (2,395) 660,061Computers 183,116 - 45,519 (13,036) 215,599

Land improvements 230,097 - - - 230,097

Subtotal 5,597,514 195,954 181,458 (15,431) 5,959,495

Accumulated depreciation:Buildings and improvements 2,306,058 - 103,223 - 2,409,281Vehicles 55,462 - - - 55,462Furniture and equipment 650,633 - 3,309 (2,395) 651,547Computers 98,646 - 21,450 (13,036) 107,060

Land improvements 121,885 - 7,795 - 129,680

Subtotal 3,232,684 - 135,777 (15,431) 3,353,030

Net capital assets beingdepreciated 2,364,830 195,954 45,681 - 2,606,465

Net capital assets $ 2,610,784 $ - $ 45,681 $ - $ 2,656,465

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33rd District Court


Note 4 - Capital Assets (Continued)

Depreciation for the fiscal year ended December 31, 2016 amounted to $135,777. Theentire depreciation expense was allocated to court services.

Note 5 - Interfund Receivables, Payables, and Transfers

The composition of interfund balances is as follows:

Fund Due From

FiduciaryFunds

Fund Due To

Fines and

Cost Fund

Sobriety

Court

Program Fund

Chemical

Awareness

Work

Program

Fund

General

Fund

Total Interfund

Receivable

General Fund $ 168,044 $ 7,700 $ 421 $ 6,883 $ - $ 183,048Capital Projects Fund 4,626 - - - - 4,626Court Technology Fund 8,991 - - - - 8,991Sobriety Court Program Fund 10 - - - - 10Chemical Awareness ProgramFund 555 - - - - 555Work Program Fund 1,860 - - - - 1,860

JIS Bond Fund - - - - 11 11

Total interfund payable $ 184,086 $ 7,700 $ 421 $ 6,883 $ 11 $ 199,101

These balances result from the time lag between the dates that goods and services areprovided or reimbursable expenditures occur, transactions are recorded in theaccounting system, and payments between funds are made.

There was one interfund transfer in the amount of $1,938 from the General Fund tohelp fund the Chemical Awareness Program.

Note 6 - Compensated Absences

The following is a summary of the compensated absence balance for which the Court isobligated for the year ended December 31, 2016:

BeginningBalance Increases Decreases

EndingBalance

Due WithinOne Year

Compensated absences $ 38,906 $ 70,777 $ (65,771) $ 43,912 $ 7,984

Note 7 - Risk Management

The Court is exposed to various risks of loss related to property loss, torts, errors andomissions, and employee injuries (workers' compensation), as well as medical benefitsprovided to employees. The Court has purchased commercial insurance for theseclaims.

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33rd District Court


Note 8 - Defined Contribution Pension Plan

The Court provides pension benefits to all of its full-time employees through a definedcontribution plan. The plan was established by the management council. The planprovisions and contribution requirements are established and may be amended by thecourt management council. The plan requires that an employee have one year of servicebefore vesting occurs. For the year ended December 31, 2016, there were 21 planmembers and the Court contributed 11 percent of covered wages, which amounted to$86,807. Plan members do not contribute to the plan. The plan is administered byNationwide Retirement Consulting Group.

Two of the Court's three judges are covered by the State of Michigan defined benefitplan and participate in the Court's defined contribution pension plan. The remainingjudge is covered under the State of Michigan defined contribution plan and by statute isineligible to participate in the Court's defined contribution plan.

Note 9 - Other Postemployment Benefits

Plan Description - The Court provides retiree healthcare benefits to eligibleemployees only and not their spouses. This is a single-employer defined benefit planadministered by the Court. Postretirement benefits are provided to all eligible retireeswith 25 years of service on or after obtaining the age of 55. The benefits are payable tothe date on which the retiree is eligible for Medicare or age 65, whichever comes first.The benefits are equal to the monthly one-person health insurance premium at the timeof the employee's retirement, not to exceed $541.66 for 2016. Subsequent increases inpremiums following the retirement are not covered by the Court. Spousal coverage isnot provided by the Court, but may be provided through the retiree's contributions.There was one employee currently eligible for benefits as of December 31, 2016, butthe employee is not receiving benefits at this time.

Funding Policy - To date, no advance funding contributions have been made to a trust.

Funding Progress - The Court’s annual other postemployment benefit (OPEB) cost iscalculated based on the annual required contribution of the employer (ARC). The Courthas elected to calculate the ARC and related information using the alternative-measurement method permitted by GASB Statement No. 45 for employers in planswith fewer than 100 total plan members. The ARC represents a level of funding that, ifpaid on an ongoing basis, is projected to cover normal cost each year and amortize anyunfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years.

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33rd District Court


Note 9 - Other Postemployment Benefits (Continued)

The valuation's computed contribution and actual funding are summarized as follows:

Annual required contribution (recommended) $ 6,145Interest on the net OPEB obligation 1,733

Less adjustment to the annual required contribution (1,805)

Annual OPEB cost 6,073

Amounts contributed:Payments of current premiums -

Advance funding -

Increase in net OPEB obligation 6,073

OPEB obligation - Beginning of year 43,326

OPEB obligation - End of year $ 49,399

Employer contributions and annual OPEB cost data for the current and preceding yearsare as follows:

Fiscal Year

Ended Valuation Date

Annual OPEB

Costs

Percentage

Contributed

Net OPEB

Obligation

12/31/14 12/31/14 $ 6,193 %- $ 37,18112/31/15 12/31/15 6,145 - 43,32612/31/16 12/31/15 6,073 - 49,399

The funding progress of the plan is as follows:

Valuation

Date

Value of

Assets

(a)

Accrued

Liability (AL)

(b)

Unfunded AL

(UAL)

(b-a)

Funded Ratio

(Percent)

(a/b)

Annual

Covered

Payroll

(c)

Ratio of UAL

to Covered

Payroll

12/31/13 $ - $ 30,988 $ 30,988 %- $ 1,176,689 %2.612/31/14 - 37,181 37,181 - 1,070,340 3.512/31/15 - 43,326 43,326 - 1,111,855 3.9

Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involveestimates of the value of reported amounts and assumptions about the probability ofoccurrence of events far into the future. Examples include assumptions about futureemployment, mortality, and the healthcare cost trend. Amounts determined regardingthe funded status of the plan and the annual required contributions of the employer aresubject to continual revision as actual results are compared with past expectations andnew estimates are made about the future.

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33rd District Court


Note 9 - Other Postemployment Benefits (Continued)

Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as understood by the employer and the plan members) and include the typesof benefits provided at the time of each valuation and the historical pattern of sharing ofbenefit costs between the employer and plan members to that point. The actuarialmethods and assumptions used include techniques that are designed to reduce theeffects of short-term volatility in actuarial accrued liabilities and the actuarial value ofassets, consistent with the long-term perspective of the calculations.

The following simplifying assumptions were made:

Retirement age for active employees - Plan members were assumed to retire based onAssumed Annual Retirement Rate Probability Tables. Historically, court employees havenot retired at the earliest year in which they qualify for benefits.

Mortality - Life expectancies were based on mortality tables from Group AnnuityMortality Tables.

Turnover - Nongroup-specific age-based turnover data from GASB Statement No. 45were used as the basis for assigning active members a probability of remaining employeduntil the assumed retirement age and for developing an expected future working lifetimeassumption for the purpose of allocating to periods the present value of total benefits tobe paid.

Healthcare cost trend rate and insurance premiums - Benefits and premiums are frozen at$541.66 and the employee is expected to pay the difference in the event of a premiumincrease.

Inflation rate - Inflation was not considered due to fixed premiums.

The unfunded actuarial accrued liability is being amortized as a level percentage ofprojected payroll on an open basis. The remaining amortization period at December 31,2016 was 23 years.

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33rd District Court


Note 10 - Reconciliation of Individual Fund Columns of the Statement ofNet Position/Statement of Activities

Net position reported in the statement of net position column is different than the fundbalance reported in the individual fund columns because of the different measurementfocus and basis of accounting, as discussed in Note 1. Below is a reconciliation of thedifferences:

Fund Balance Reported in Governmental Funds $ 391,525

Amounts reported for governmental activities in the statementof net position are different because:

Capital assets used in governmental activities are not financialresources and are not reported in the funds 2,656,465

Employee compensated absences are payable over a longperiod of years and do not represent a claim on currentfinancial resources; therefore, they are not reported asfund liabilities (43,912)

Net retiree healthcare obligations do not present a claim oncurrent financial resources and are not reported as fundliabilities (49,399)

Net Position of Governmental Activities $ 2,954,679

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33rd District Court


Note 10 - Reconciliation of Individual Fund Columns of the Statement ofNet Position/Statement of Activities (Continued)

The change in net position reported in the statement of activities column is differentthan the change in fund balance reported in the individual fund columns because of thedifferent measurement focus and basis of accounting, as discussed in Note 1. Below is areconciliation of the differences:

Net Change in Fund Balances - Total Governmental Funds $ (37,902)

Amounts reported for governmental activities in the statementof activities are different because:

Governmental funds report capital outlays as expenditures;however, in the statement of activities, these costs areallocated over their estimated useful lives as depreciation:

Capital outlay 181,458

Depreciation expense (135,777)

Revenue is recorded in the statement of activities whenearned; it is not reported in the funds until collected orcollectible within 60 days of year end (22,316)

Changes in accumulated employee sick and vacation pay andother similar expenses reported in the statement ofactivities do not require the use of current resources, andtherefore are not reported in the fund statements untilthey come due for payment (5,006)

Increase in net retiree healthcare liability reported in thestatement of activities does not require the use of currentresources and therefore, is not reported in the fundstatements until it comes due for payment (6,073)

Change in Net Position of Governmental Activities $ (25,616)

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33rd District Court


Note 11 - Upcoming Accounting Pronouncement

In June 2015, the Governmental Accounting Standards Board (GASB) issued StatementNo. 75, Accounting and Financial Reporting for Postemployment Benefits Other ThanPensions, which addresses reporting by governments that provide postemploymentbenefits other than pensions (OPEB) to their employees and for governments thatfinance OPEB for employees of other governments. This OPEB standard will requirethe Court to recognize on the face of the financial statements its net OPEB liabilityrelated to its participation in the OPEB plan. The statement also enhances accountabilityand transparency through revised note disclosures and required supplementalinformation (RSI). The Court is currently evaluating the impact this standard will haveon the financial statements when adopted. The provisions of this statement are effectivefor the Court’s financial statements for the year ending December 31, 2018.

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Required Supplemental Information

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33rd District Court

Required Supplemental InformationBudgetary Comparison Schedule - General Fund


Original Budget Amended Budget Actual

Variance with

Amended Budget

RevenueBrownstown Township $ 551,486 $ 551,486 $ 551,486 $ -City of Flat Rock 351,848 351,848 351,848 -City of Gibraltar 61,519 61,519 61,519 -Grosse Ile Township 87,515 87,515 87,515 -City of Rockwood 130,976 130,976 130,976 -City of Trenton 393,125 393,125 393,125 -City of Woodhaven 408,009 408,009 408,009 -Miscellaneous 44,000 44,000 21,267 (22,733)Standardization payments 136,272 136,272 137,172 900

Fees 55,500 55,500 28,723 (26,777)

Total revenue 2,220,250 2,220,250 2,171,640 (48,610)

ExpendituresSalary and wages 1,160,000 1,130,000 1,081,154 48,846Payroll services 3,000 3,340 3,335 5Employee benefits 432,000 408,950 348,433 60,517Office supplies 23,000 23,000 20,768 2,232Office equipment 4,000 4,110 4,421 (311)Postage 23,000 23,000 18,234 4,766Dues and subscriptions 5,000 5,000 3,945 1,055Cleaning and uniforms 3,000 3,000 2,275 725Attorney appointments 105,000 105,000 97,806 7,194Audit service 8,150 8,450 8,450 -Training services 3,000 3,000 1,808 1,192Professional fees 72,000 80,000 87,202 (7,202)Telephone 17,000 17,000 13,467 3,533Car allowance 2,000 2,000 557 1,443Jury and witness fees 10,000 10,000 4,795 5,205Library expense 7,000 7,800 8,440 (640)Forms 8,000 8,000 6,967 1,033Insurance and bonds 46,000 46,000 37,922 8,078Utilities 66,000 66,000 51,305 14,695Service to equipment 3,000 3,000 810 2,190Building/Maintenance 100,000 100,000 88,494 11,506Rental equipment 6,000 6,000 7,073 (1,073)General expense 33,000 41,500 35,666 5,834Capital outlay 22,000 57,000 52,939 4,061Computer expense 56,000 56,000 52,300 3,700

Total expenditures 2,217,150 2,217,150 2,038,566 178,584

Excess of Revenue Over Expenditures 3,100 3,100 133,074 129,974

Other Financing (Uses) SourcesInterfund transfer to Chemical Awareness

Program (3,100) (3,100) (1,938) 1,162

Distribution to DCUs - - (131,136) (131,136)

Total other financing uses (3,100) (3,100) (133,074) (129,974)

Net Change in Fund Balances - - - -

Fund Balances - Beginning of year - As restated 197,192 197,192 197,192 -

Fund Balances - End of year $ 197,192 $ 197,192 $ 197,192 $ -

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33rd District Court

Required Supplemental InformationBudgetary Comparison Schedule - Sobriety Court Program Fund



Variance with

Amended Budget

RevenueGrants $ 90,000 $ 90,500 $ 115,977 $ 25,477Program fees 6,903 7,520 6,794 (726)

Total revenue 96,903 98,020 122,771 24,751

ExpendituresTraining 3,180 3,590 2,311 1,279Monitoring 10,920 7,745 9,193 (1,448)Testing 43,200 48,929 52,293 (3,364)Supplies 1,250 1,094 403 691Program incentives 370 361 170 191Defense attorney 4,500 4,219 4,525 (306)Personnel 27,125 22,601 26,454 (3,853)Substance abuse treatment 6,358 9,481 6,627 2,854

Car allowance - - 959 (959)

Total expenditures 96,903 98,020 102,935 (4,915)

Net Change in Fund Balances - - 19,836 19,836

Fund Balances - Beginning of year 71,365 71,365 71,365 -

Fund Balances - End of year $ 71,365 $ 71,365 $ 91,201 $ 19,836

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33rd District Court

Required Supplemental InformationBudgetary Comparison Schedule - Chemical Awareness

Program FundYear Ended December 31, 2016


Variance with

Amended Budget

Revenue - Program fees $ 6,000 $ 6,000 $ 6,683 $ 683

ExpendituresWages and benefits 2,500 2,500 1,506 994

Instructor 6,600 6,600 5,400 1,200

Total expenditures 9,100 9,100 6,906 2,194

Deficiency of Revenue Over Expenditures (3,100) (3,100) (223) 2,877

Other Financing Source - Interfund transfer fromthe General Fund 3,100 3,100 1,938 (1,162)

Net Change in Fund Balances - - 1,715 1,715

Fund Balances - Beginning of year 451 451 451 -

Fund Balances - End of year $ 451 $ 451 $ 2,166 $ 1,715

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33rd District Court

Required Supplemental InformationBudgetary Comparison Schedule - Work Program Fund



Variance with

Amended Budget

RevenueProgram fees $ 55,000 $ 55,000 $ 37,076 $ (17,924)

Miscellaneous 2,700 2,700 - (2,700)

Total revenue 57,700 57,700 37,076 (20,624)

ExpendituresWages and benefits 48,400 48,400 24,582 23,818Cleaning and uniforms 1,000 1,000 522 478Supplies 2,000 2,000 2,301 (301)Communications 2,000 2,000 - 2,000Car allowance 1,000 1,000 - 1,000Vehicle 3,000 3,000 4,106 (1,106)General expense 300 300 - 300

Total expenditures 57,700 57,700 31,511 26,189

Excess of Revenue Over Expenditures - - 5,565 5,565

Distribution to District Court Units - - (5,565) (5,565)

Net Change in Fund Balances - - - -

Fund Balances - Beginning of year 10,000 10,000 10,000 -

Fund Balances - End of year $ 10,000 $ 10,000 $ 10,000 $ -

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33rd District Court

Required Supplemental InformationOPEB System Schedule


The schedule of funding progress is as follows:

Actuarial

Valuation Date

Actuarial

Value of

Assets

(a)

Actuarial

Accrued

Liability (AAL)

(b)

Unfunded

AAL (UAAL)

(b-a)

Funded Ratio

(Percent)

(a/b)

Covered

Payroll

(c)

UAAL as a

Percentage of

Covered

Payroll

12/31/13 $ - $ 30,988 $ 30,988 - $ 1,176,689 2.612/31/14 - 37,181 37,181 - 1,070,340 3.512/31/15 - 43,326 43,326 - 1,111,855 3.9

35

Other Supplemental Information

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33rd District Court

37

Fines and Costs Fund Schedule of Changes in Liabilities


Excess Add (Subtract) BalanceReceipts Balance Due from

Cash Cash (Under) Over Transfers Due from (Due to)Receipts Disbursements Disbursements In (Out) 12/31/2015 12/31/2016

Ordinance Fines and Costs

District Court Units564,374$ 564,930$ (556)$ -$ 12,389$ 12,945$ 472,964 460,184 12,780 - 1,342 (11,438) 64,677 64,802 (125) - 1,528 1,653 93,936 92,017 1,919 - 3,022 1,103

133,765 136,369 (2,604) - 3,293 5,897 425,067 436,154 (11,087) - (3,244) 7,843 440,650 424,695 15,955 - 20,257 4,302

2,195,433 2,179,151 16,282 - 38,587 22,305

Other Governmental Agencies880,155 871,203 8,952 - (56,664) (65,616) 72,781 76,699 (3,918) - (7,226) (3,308)

Total 952,936 947,902 5,034 - (63,890) (68,924)

Miscellaneous Payables90 210 (120) - (137) (17)

20,997 20,997 - - - -

Total 21,087 21,207 (120) - (137) (17)

Total ordinance fines3,169,456 3,148,260 21,196 - (25,440) (46,636)

Interfund Payables2,026,351 2,025,401 950 - (167,094) (168,044)

56,012 55,282 730 - (3,896) (4,626) 125,610 126,492 (882) - (9,873) (8,991) 37,076 37,971 (895) - (2,755) (1,860) 6,794 8,100 (1,306) - (1,316) (10) 6,683 6,393 290 - (265) (555)

Total 2,258,526 2,259,639 (1,113) - (185,199) (184,086)

5,427,982$ 5,407,899$ 20,083$ -$ (210,639)$ (230,722)$

and costs

Brownstown Township

City of GibraltarGrosse Ile TownshipCity of RockwoodCity of TrentonCity of Woodhaven

City of Flat Rock

Total

State of MichiganWayne County

Total changes in liabilities

MiscellaneousCase flow assistance

General Fund

Work Program Fund

Capital Projects FundCourt Technology Fund

Chemical Awareness Program FundSobriety Court Program Fund

33rd District Court

38

Schedule of District Control Units Fines Collected Over Actual General Fund Budget Expenditures


Fines

Fines CollectedFines Adjusted Collected (Under) Over

Percentage Collected General (Under) Over Actual5-year Avg. Percentages of For Fund Actual ExpendituresCaseload Of Cases Collection Distribution Expenditure Expenditures 2015

Brownstown Township 28,754$ 28.9202% 24.5788% 482,187$ 588,700$ (106,513)$ (90,595)$ City of Flat Rock 17,041 17.1396% 23.6891% 464,733 348,894 115,839 44,706 City of Gibraltar 3,438 3.4579% 3.1003% 60,821 70,389 (9,568) 9,285 Grosse Ile Township 4,387 4.4124% 4.0963% 80,361 89,819 (9,458) (11,741) City of Rockwood 5,907 5.9412% 6.1638% 120,922 120,939 (17) 18,479 City of Trenton 19,337 19.4488% 21.1578% 415,074 395,900 19,174 162,268 City of Woodhaven 20,561 20.6799% 17.2139% 337,703 420,960 (83,257) (34,099)

Total 99,425 100.0000% 100.0000% 1,961,801$ 2,035,601$ (73,800)$ 98,303$

2011-2015 Actual 2016 Actual

33rd District Court

39

General Fund Schedule of Amounts Payable to District Control Units


General Fund Work Program FundCurrent Year Excess of Total

Excess of Fund Balance Distribution DistributionsRevenue Over Amounts Paid

Balance Over Actual Committed Case Load Owed to as of12/31/2015 Expenditures Amount Adjustment* DCUs 12/31/2016

Brownstown Township 55,200$ 37,925$ 1,609$ (13,084)$ 26,450$ 55,200$ City of Flat Rock 32,337 22,476 954 9,324 32,754 32,337 City of Gibraltar 5,580 4,535 192 (3,941) 786 5,580 Grosse Ile Township 9,079 5,786 246 1,271 7,303 9,079 City of Rockwood 12,910 7,791 331 9,831 17,953 12,910 City of Trenton 36,275 25,504 1,082 22,617 49,203 36,275 City of Woodhaven 37,437 27,119 1,151 (26,018) 2,252 37,437

Total 188,818$ 131,136$ 5,565$ -$ 136,701$ 188,818$

*Note - The adjustments column represents the reallocation of prior year distributions due to a revised case load percentage.

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