Agenda Item No. LJ b Town of Windsor Memorandum December 10, 2019 - PDF document

Agenda Item No. LJ b Town of Windsor Memorandum December 10, 2019 TO: The Honorable Mayor and Town Council Michael Stallings, Town Manager /It\ 5 FROM: SUBJECT: Audit Presentation Attached is a draft of our 2018-19 audit. Aaron Hawkins with Robinson, Farmer, Cox Associates will be at our December 1 O'h Town Council meeting to give Council a presentation on his findings and to answer any questions you may have. The Management Discussion and Analysis found on pages 4-8 give a good overview of the findings of the audit.

T OWN OF W INDSOR , V IRGINIA A NNUAL F INANCIAL R EPORT F OR THE F ISCAL Y EAR E NDED J UNE 30, 2019

TOWN OF WINDSOR, VIRGINIA T OWN C OUNCIL Glyn T. Willis, Mayor Walter Bernacki Kelly Blankenship George Stubbs Durwood V. Scott J. Randy Carr Greg Willis G ENERAL T OWN G OVERNMENT Town Manager Michael Stallings Town Clerk Terry Whitehead Town Treasurer Christy Newsome Town Attorney Wallace W. Brittle, Jr.

TOWN OF WINDSOR, VIRGINIA FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS Page Independent Auditors’ Report ................................................................................ 1-3 Management’s Discussion and Analysis 4-8 Page Exhibit Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ..................................................................... 1 9 Statement of Activities ......................................................................... 2 10-11 Fund Financial Statements: Balance Sheet – Governmental Funds ....................................................... 3 12 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .............................................................................. 4 13 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ....................................................................... 5 14 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ......... 6 15 Statement of Net Position – Proprietary Fund .............................................. 7 16 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Fund . 8 17 Statement of Cash Flows – Proprietary Fund ................................................ 9 18 Notes to Financial Statements 19-54 Required Supplementary Information: Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual: General Fund ........................................................................... 10 55 Future Development Fund 11 56 Forfeited Assets Fund 12 57 Schedule of Changes in Net Pension Liability (Asset) and Related Ratios – Pension Plan 13 58 Schedule of Employer Contributions – Pension Plan 14 59 Notes to Required Supplementary Information – Pension Plan 15 60 Schedule of Town’s Share of New OPEB Liability – Group Life Insurance Program 16 61 Schedule of Employer Contributions – Group Life Insurance Program 17 62 Notes to Required Supplementary Information – Group Life Insurance Program 18 63 Other Supplementary Information: Economic Development Authority Discretely Presented Component Unit – Statement of Net Position 19 64 Statement of Revenues, Expenses and Changes in Net Position 20 65 Statement of Cash Flows 21 66

TOWN OF WINDSOR, VIRGINIA FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS (CONTINUED) Page Exhibit Other Supplementary Information: (Continued) Community Recreation Center Discretely Presented Component Unit – Statement of Net Position 22 67 Statement of Revenues, Expenses and Changes in Net Position 23 68 Statement of Cash Flows 24 69 Page Supporting Schedules: Schedule Schedule of Revenues – Budget and Actual – Governmental Funds ........................ 1 70-71 Schedule of Expenditures – Budget and Actual – Governmental Funds ................... 2 72-73 Page Table Other Statistical Information: Government-wide Expenses by Function ....................................................... 1 74 Government-wide Revenues ...................................................................... 2 75 General Governmental Expenditures by Function ............................................ 3 76 General Governmental Revenues by Source ................................................... 4 77 Property Tax Levies and Collections ............................................................ 5 78 Assessed Value of Taxable Property ............................................................. 6 79 Property Tax Rates ................................................................................. 7 80 Ratio of Net General Bonded Debt to Assessed Value and Net Bonded Debt Per Capita .................................................................................. 8 81 Computation of Legal Debt Margin .............................................................. 9 82 Compliance: Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Audit ing S t andards ......................... 83-84 Schedule of Findings and Responses 85-91

Independent Auditors’ Report To the Honorable Members of the Town Council Town of Windsor Windsor, Virginia Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component units, and each major fund of Town of Windsor, Virginia, as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the Town’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 in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility 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 Audit ing S t andards , 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates 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 for our audit opinions. 1