town of west warwick 2016 financial statements7b7c7e47... · 2017-03-01 · 3 towngeneral fund...
TRANSCRIPT
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Town of West Warwick2016 Financial Statements
February 28, 2017
Presented byJames D. Wilkinson, CPA
Partner
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Introduction
Presentation will review the Town’s 2016 financial statement audit and financial results
Feel free to ask questions at any time
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Town General Fund
Total Fund Balance decreased by $1,052,487
Budgeted change was increase of $200,000
Unassigned Fund Balance = $453,494
Unassigned Fund Balance represents less than 1% of Operating Budget
Current level is well below healthy target of 8-16% of budgeted expenditures
Performance is better than projections in 5-Year Plan
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Fund Balance: last 6 years
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
2011 2012 2013 2014 2015 2016
Total
Unassigned
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Results of Operations
Revenues were below budget by $791,716 Property taxes $679,819 below what was anticipated Lag in collection of prior year balances Collection of current year assessment below budget
assumption Tax collection percentages:
• 96.9% collection of current year assessment• Budget was based on 97.5% collection factor• 99.8% collection of current and prior assessments
outstanding when compared to current assessment
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Results of Operations (continued)
Expenditures were $260,771 above appropriated amounts Significant unfavorable results in these areas:
• Employee benefits (FICA, severance, health)• Insurance• Telephone• Contractual services• Debt service• Street lighting• Finance, assessor and human resources
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School Department
Unrestricted fund ended year with fund balance of $4,275,973, with $4,063,988 committed for educational purposes and $211,985 unspendable
Fund balance is accumulation of all prior year balances, including current year increase of $1,092,408
School grant/restricted funds recognized $2,328,510 in expenditures to supplement operations
Revenues were $162,056 above anticipated amounts
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School Department (continued)
Expenditures were $1,330,352 below appropriations
Expenditures for capital outlay totaled $1,176,291
Accumulated fund balance being reinvested in capital assets (building improvements, student-related technologies - avoiding long-term borrowings)
School Lunch Fund recognized net income of $125,342
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Combined Fund Balance: Town General Fund & School Unrestricted Fund - last 6 years
‐4000000
‐2000000
0
2000000
4000000
6000000
8000000
10000000
2011 2012 2013 2014 2015 2016
School
Town
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Wastewater Authority
Revenues amounted to $7,283,323, down from prior year revenue of $8,118,428
Expenses were $7,658,785, up from prior year amount of $7,630,733
Net income of $848,593
Fund has net assets of $42,427,349 – with $33,225,341 of that invested in capital assets (net of related debt) used in operations and balance of $9,202,008 unrestricted
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Town Pension Plan
Funded status has varied: 19.35% funded as of 7/1/2014 – per FS,
assets reported at fair values 18.9% per actuarial valuation
19.56% funded as of 7/1/2015 – per FS, assets reported at fair values 19.8% per actuarial valuation
18.38% funded as of 7/1/2016 – per FS, assets reported at fair values 20.1% per actuarial valuation
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Town Pension Plan (continued)
• $127.5 million Net Pension Liability at 7/1/2016 –Town implemented GASB No. 68 effective 7/1/2014
Funding has been budgeted at 100% of Annually Required Contribution (ARC) based on preliminary actuarial reports for each of past two fiscal years.
Prior to 2015 funding was significantly below ARCNet investment earnings have lagged expectations
each of past two years 2016 – 5.92% 2015 – 5.01%
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Town pension funding – last 10 years
0
2000000
4000000
6000000
8000000
10000000
12000000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Shortage
Actual
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Other Post-Employment Benefits
Town plan ended year with accumulated balance of $1,338,815 available for benefits
Based on latest actuarial data available, combined unfunded liability is approximately $54 million
Combined actuarially determined contribution was approximately $4.9million while actual contributions aggregated $4.1million
While full funding of benefits is highly recommended, it is not currently required by law or accounting standards
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Findings, Recommendations and Other
Communication with Those Charged with Governance
Adoption of latest COSO Internal Control Standards
Implementation of internal risk-assessments and monitoring of controls over significant transaction cycles
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Questions?
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Thank You.