VILLAGE OF ARCANUM - Ohio Auditor of State .2 Village of Arcanum Darke County Independent Auditor’s

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  • VILLAGE OF ARCANUM DARKE COUNTY

    DECEMBER 31, 2015

    TABLE OF CONTENTS TITLE PAGE Independent Auditors Report ....................................................................................................................... 1 Combined Statement of Receipts, Disbursements, and Changes in Fund Balances (Cash Basis) - All Governmental Fund Types For the Year Ended December 31, 2015 .................................................................................................... 5 Combined Statement of Receipts, Disbursements, and Changes in Fund Balances (Cash Basis) - All Proprietary Fund Types For the Year Ended December 31, 2015 .................................................................................................... 6 Notes to the Financial Statements For the Year Ended December 31, 2015 ............................................... 7 Independent Auditors Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Required by Government Auditing Standards ......................................................................................... 21 Schedule of Findings ................................................................................................................................... 23 Summary Schedule of Prior Audit Findings .............................................................................................. 24

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    INDEPENDENT AUDITORS REPORT

    Village of Arcanum Darke County 104 West South Street Arcanum, Ohio 45304 To the Village Council: Report on the Financial Statements We have audited the accompanying financial statements of the cash balances, receipts and disbursements by fund type, and related notes of the Village of Arcanum, Darke County, Ohio, (the Village) as of and for the year ended December 31, 2015. Management's Responsibility for the Financial Statements Management is responsible for preparing and fairly presenting these financial statements in accordance with the financial reporting provisions Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(D) permit; this responsibility includes designing, implementing and maintaining internal control relevant to preparing and fairly presenting financial statements free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to opine on these financial statements based on our audit. We audited in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement. An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the Village's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the Village's internal control. Accordingly, we express no opinion. An audit also includes evaluating the appropriateness of managements accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation. We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinions.

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    Village of Arcanum Darke County Independent Auditors Report Page 2 Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles As described in Note 2 of the financial statements, the Village prepared these financial statements using the accounting basis permitted by the financial reporting provisions of Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(D), which is an accounting basis other than accounting principles generally accepted in the United States of America (GAAP), to satisfy these requirements. Although the effects on the financial statements of the variances between the regulatory accounting basis and GAAP are not reasonably determinable, we presume they are material. Though the Village does not intend these statements to conform to GAAP, auditing standards generally accepted in the United States of America require us to include an adverse opinion on GAAP. However, the adverse opinion does not imply the amounts reported are materially misstated under the accounting basis Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(D) permit. Our opinion on this accounting basis is in the Opinion on Regulatory Basis of Accounting paragraph below. Adverse Opinion on U.S. Generally Accepted Accounting Principles In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles paragraph, the financial statements referred to above do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Village as of December 31, 2015, or changes in financial position or cash flows thereof for the year then ended. Opinion on Regulatory Basis of Accounting In our opinion, the financial statements referred to above present fairly, in all material respects, the combined cash balances of the Village of Arcanum, Darke County as of December 31, 2015, and its combined cash receipts and disbursements for the year then ended in accordance with the financial reporting provisions Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(D) permit, described in Note 2. Emphasis of Matter As discussed in Note 12 to the financial statements, during 2015, the Village has elected to change its financial presentation to the financial reporting provisions Ohio Revised Code Section 117.38 and Ohio Administrative Code Section 117-2-03(D) permit. We did not modify our opinion regarding this matter.

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    Village of Arcanum Darke County Independent Auditors Report Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 16, 2017, on our consideration of the Villages internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report describes the scope of our internal control testing over financial reporting and compliance, and the results of that testing, and does not opine on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Villages internal control over financial reporting and compliance. Dave Yost Auditor of State Columbus, Ohio March 16, 2017

    jrhelleYost Signature

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  • Village of Arcanum, OhioDarke County

    Combined Statement of Receipts, Disbursementsand Changes in Fund Balances (Cash Basis)

    All Governmental Fund TypesFor the Year Ended December 31, 2015

    Totals

    Special Debt Capital (MemorandumGeneral Revenue Service Projects Only)

    Cash ReceiptsProperty and Other Local Taxes $56,282 $39,228 $27,813 $0 $123,323Municipal Income Tax 546,360 0 0 0 546,360Intergovernmental 75,273 120,373 4,942 0 200,588Special Assessments 0 2,236 0 40,905 43,141Charges for Services 3,169 76,638 0 0 79,807Fines, Licenses and Permits 15,422 0 0 0 15,422Earnings on Investments 8,431 3,614 0 100 12,145Miscellaneous 70,709 11,516 1 0 82,226

    Total Cash Receipts 775,646 253,605 32,756 41,005 1,103,012

    Cash DisbursementsCurrent: Security of Persons and Property 267,217 66,927 646 0 334,790 Public Health Services 9,602 26,602 0 0 36,204 Leisure Time Activities 3,334 31,740 0 0 35,074 Community Environment 82,674 0 0 0 82,674 Transportation 7,740 93,959 0 0 101,699 General Government 147,115 635 0 0 147,750Capital Outlay 88,237 48,695 0 114,578 251,510Debt Service: Principal Retirement 8,896 18,750 35,690 10,167 73,503 Interest and Fiscal Charges 2,425 0 2,105 0 4,530

    Total Cash Disbursements 617,240 287,308 38,441 124,745 1,067,734

    Excess of Receipts Over (Under) Disbursements 158,406 (33,703) (5,685) (83,740) 35,278

    Other Financing Receipts (Disbursements)Other Debt Proceeds 36,263 0 0 0 36,263Proceeds of OPWC Loan 0 0 0 25,200 25,200Transfers In 0 18,000 0 20,334 38,334Transfers Out (38,334) 0 0 0 (38,334)Advances In 3,191 0 0 0 3,191

    Total Other Financing Receipts (Disbursements) 1,120 18,000 0 45,534 64,654

    Net Change in Fund Cash Balances 159,526 (15,703) (5,685) (38,206) 99,932

    Fund Cash Balances, January 1 1,062,937 521,766 51,962 101,146 1,737,811

    Fund Cash Balances, December 31Nonspendable 1,381 0 0 0 1,381Restricted 0 506,063 46,277 62,940 615,280Assigned 19,963 0 0 0 19,963Unassigned 1,201,119 0 0 0 1,201,119

    Fund Cash Balances, December 31 $1,222,463 $506,063 $46,277 $62,940 $1,837,743

    The notes to the financial statements are an integral part of this statement.

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  • Village of Arcanum, OhioDarke County

    Combined Statement of Receipts, Disbursementsand Changes in Fund Balances (Cash Basi