Town of Amherst Industrial Development Agency and Town of Amherst Development Corporation Report to the Board of Directors March 16, 2018
Table of Contents Section: 1. Executive Summary 2. Draft Financial Statements – Amherst Industrial Development Agency 3. Draft Financial Statements – Amherst Development Corporation
Town of Amherst Industrial Development Agency and Town of Amherst Development Corporation Executive Summary December 31, 2017
I. Summary of Audit Results – Town of Amherst Industrial Development Agency We plan to issue an unmodified opinion on the financial statements for the year ended December 31, 2017. There were no material weaknesses in internal controls identified during our audit. Current year revenue increased by $349k due to an increase in activity from the Development Corporation during the current year. Expenses decreased by $405k primarily due to decreased legal, salaries, and related benefit expenses. Total net position increased by $225k. Total assets increased $167k, which was predominantly the result of the increase in cash of $113k, increase in receivables of $74k, and the decrease in capital assets of $20k. Total liabilities decreased $58k due to decreased accounts payable and accrued expenses of $11k and mortgage payments made during the year of $47k. II. Summary of Audit Results – Town of Amherst Development Corporation We plan to issue an unmodified opinion on the financial statements for the year ended December 31, 2017. There were no material weaknesses in internal controls identified during our audit. Current year revenue increased by $434k due to the current year activity closing three projects compared to the prior year which did not have any activity. Expenses increased by $412k primarily due to the transfer to the Town of Amherst Industrial Development agency for administrative fees. Total net assets increased by $1k. Total assets increased $18k, which was predominantly the result of the increase in cash of $30k, offset by the decrease in a note receivable of $12k. Total liabilities increased $17k due to increased accounts payable of $30k and a decrease in a note payable of $12k. III. Questions IV. Contact information Randy Shepard, Engagement Partner, (716) 250-6600 or rshepard@bonadio.com Justin Reid, Engagement Partner, (716) 580-1609 or jreid@bonadio.com 1
Draft- Subject to Change TOWN OF AMHERST INDUSTRIAL DEVELOPMENT AGENCY Financial Statements as of December 31, 2017 and 2016 Together with Independent Auditor’s Report
TOWN OF AMHERST INDUSTRIAL DEVELOPMENT AGENCY DECEMBER 31, 2017 AND 2016 TABLE OF CONTENTS Page Draft- Subject to Change INDEPENDENT AUDITOR’S REPORT ................................................................................. 1 - 2 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) ........................................ 3 - 6 BASIC FINANCIAL STATEMENTS: Statements of Net Position .......................................................................................... 7 Statements of Revenue, Expenses, and Change in Net Position ................................ 8 Statements of Cash Flows ........................................................................................... 9 Notes to Financial Statements ..................................................................................... 10 - 16 INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH 17 - 18 GOVERNMENT AUDITING STANDARDS ............................................................................ SUPPLEMENTAL INFORMATION: Schedule 1 - Schedule of Financing Activity ................................................................ 19 - 21 Schedule 2 - Schedule of Detailed Financing Activity ................................................. 22
INDEPENDENT AUDITOR’S REPORT March XX, 2018 Draft- Subject to Change To the Board of Directors of the Town of Amherst Industrial Development Agency: Report on the Financial Statements We have audited the accompanying financial statements of the Town of Amherst Industrial Development Agency (the Agency), as of and for the years ended December 31, 2017 and 2016, and the related notes to the financial statements, which collectively comprise the Agency’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. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, 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 auditor’s 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 opinion. (Continued) 1
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