Planning District Commission Finance Exec Committee   11/6/2025

Any edits, changes?

If you need a minute to read it, we can do that.

I mean, I'll second that.

All right, thank you.

Aye.

I am so glad you all have allowed me to bring this back before you.

This is the financial policy that I brought before you not so very long ago.

It went into effect.

And we realized that it actually does not include any explicit oversight of our organization's payroll.

Well, we are doing two sets of eyes on payroll before it goes out as a practice.

It is not actually in the policy, and it should be.

So the revisions before you explicitly call out who

and what their role is in reviewing the payroll, which is bi-monthly for our organization.

And then there's also a couple of edits around electronic payments and checks to clarify what exactly is happening there.

The way that I had written it previously, it sounded like we were moving all of our payables from checks to electronic and we need to have them.

An option to have a mix.

So it clarifies that.

Yes, it does.

So this just is matching the bylaws.

So are we moving to more electronic payments?

In practice at the moment.

But the way it's written, it does authorize or clarify that we can authorize the wire payments

Mr.

Thank you.

Fine, sir.

Sorry, I was muted.

Thank you.

All in favor, say aye.

Aye.

All right.

So I guess during the actual commission meeting, we'll have to do this.

OK. All righty.

Financial management policy draft.

We're supposed to be talking about this in front of our guidance.

This is a joke.

Not a good joke, but it was a joke.

All right.

That's all right.

So we have with us tonight David Foley, who has performed our audit from Rochester.

We did both.

Yes.

Oh, look at that.

Yes.

Oh, OK. One was the red line, one was the eye.

It's all right.

Thank you.

I'm going to shut up now.

All right, thank you.

So we have conducted the fiscal year 25 agency financial audit with David Foley and here tonight to present the findings with us to go over in hopefully good detail and be available to answer any questions you may have.

I'll also kind of let you know that

On an annual basis, in addition to or included in is management's discussion and analysis that is prepared in-house by Christine and myself.

And that is on pages nine through 14.

Well, thank you.

Good evening, everyone.

Glad to be here.

So we have completed the audit for fiscal year ended June 30th, 2025, and have issued a draft of the audit report and financial statement.

So here to present the results of that to you all.

Before I get into the actual results of the audit, as part of the audit that we do, there's really

Three main pieces of the audit that we do.

One, of course, is we audit the financial statements to make sure that the organization's financial statements have been prepared in accordance with generally accepted accounting principles.

And then the other two pieces of the audit we do in accordance with government auditing standards,

One of which is in addition to just looking at the numbers themselves, we look at the internal controls that the organization has over its financial reporting and we'll do a test of some of those controls.

And then the third piece of the audit is the federal compliance piece that's done in accordance with

the single audit, federal auditing standards.

So for the major federal grant programs, OMB issues a compliance supplement that lists all the required things that the organization has to comply with when it's carrying out and expanding the federal grant program.

So as part of the audit,

We look to make sure that the organization is complying with those federal grant compliance requirements.

So those are the three main pieces of the audit that we do.

So as such included in the audited financial statements, there are three different reports from us that communicate the results of the audit.

The first is towards the beginning on numbered page six.

This is our independent I did perform an audit on the organization's financial statements and then in the second paragraph of this report is where we issue our opinion on the financial statements and we have issued a unmodified opinion

on the organization's financial statements, which is the cleanest opinion an alder can give on a set of financial statements.

Essentially, an unmodified opinion means that the organization's financial statements have been prepared in accordance with generally accepted accounting principles.

So again, that's the cleanest opinion an alder can give on the set of financials.

The other two reports from us are in the back of the report.

The first one is back on page, PDF page 70.

So this is our report over the organization's internal control over financial reporting.

This report was clean as well.

We noted no

significant deficiencies and material weaknesses in the organization's internal controls that it has over financial reporting.

You know, for instance, we had no we had no audit adjustments as part of the audit that we did, which I think speaks to the strength of the controls that the organization has over its financial reporting.

Really, to go through

and all of it and not have any altered adjustments I think speaks to the strength of the internal controls that the organization has to go through and own it and not have any financial statements.

Again, I think that speaks to the strength of the internal controls that the organization has.

And then the

The third and final report from us is two pages over on page 72.

This is our report over the organization's compliance with its major federal grant programs.

Again, this report was clean as well.

We know to know significant deficiencies or material weaknesses or federal compliance issues with the organization's compliance with its major federal grant programs.

So

All three opinions, all three reports from us were clean.

Again, this year's overall is a very, very clean audit for the organization again this year.

So those are the three opinions.

As far as the financial statements go, the first set of financial statements start on page 17, exhibit one.

And these first two financial statements are the full accrual statement.

So this includes capital assets, long term liabilities, liabilities and assets related to the pension and OPEB related to the VRS, OPEB liabilities.

So exhibit one, a statement in that position, again, this shows the assets, deferred outflows, liabilities, deferred inflows in that position as of the end of the fiscal year.

So total current assets for the organization at the end of the fiscal year was 10.5 million in total current assets.

then non-current assets which include the net pension asset and then net capital assets total was $586,000 so total grand total of assets was $11.2 million and then the next section of the statement of financial position is the liabilities

So total current liabilities was 8.9 million.

And then total grand total liabilities was also a little over 8.9 million.

And then down at the bottom shows the total net position at the end of the fiscal year.

So total net position was 2.1 million.

And then that's further broken down between

and then unrestricted net position was $1.6 million.

Second financial statement is the next page over on exhibit two shows the expenses, revenues and change in that position.

So kind of down towards the bottom, the change in that position was one hundred and sixty four thousand, almost one hundred sixty five thousand increase in that position during the fiscal year.

And again, these are the

The full accrual financial statements.

The next section of the financial statements is two pages over, starts on exhibit three.

Exhibit three is a balance sheet for the governmental funds.

So these are on the modified accrual basis.

So there's various categories of various different funds.

It's got the general fund.

Transportation, Housing, the Blue Ridge Cigarette Tax Board, broadband and other governmental funds.

So total assets at the end of the fiscal year was $10.7 million.

And then compared to total liabilities,

which was a little over $9 million, and then ending fund balance at the end of the fiscal year was $1.6 million.

Again, fund balance is the excess of the organization's assets over its liabilities.

And then again, that fund balance is broken down between non-spendable, which was prepaid expenses of $25,000,

then committed fund balance of 900 almost 946,000 which was related to capital reserves and then unassigned fund balance of 720,000 at the end of the fiscal year.

The next financial statement is Exhibit 4.

This is just a reconciliation between the fund balance that's reported on Exhibit 3, which again is on the modified accrual basis, and then the reconciled items between that and then

the total net position that was reported on exhibit one.

So just to reconcile items between the two.

So on page 22 is exhibit five.

This is a statement of revenues, expenditures, and changes in fund balance.

Again, various different columns for the different funds.

So total

On page 23, there's the total revenues of $45.4 million in revenues compared to expenditures of $45.2 million and then down towards the bottom, the net change in fund balance during the fiscal year.

So the increase in governmental fund balance was $167,000.

$350, so an increase in fund balance during the fiscal year.

And then last exhibit in the front of the report is exhibit six.

Again, this is just a reconciliation between the change in fund balance of $167 and then

The reconciling item to the full accrual change in that position, it was on exhibit 2 of 164,000.

So those are the main financial statements at the beginning of the report.

The next section of the report starts on page 25.

which goes on for about another 25-26 pages.

This is the notes to the financial statements.

So the notes to the financial statements disclose significant accounting policies that the

Commission uses in preparing its financial statements.

Also provides some additional details behind some of the numbers that are included in the financial statements.

And then if you want to know all the information related to pension, BRS pension and

Well, as discussed, I was derelict.

So those go all the way to page 53.

So then the next section of the report is required supplementary information.

This starts on page 55.

So exhibit seven, this is a budget to actual for the governmental funds.

So there's a column for original budget, final budget, actual

and then variants.

So again, total revenues, total final budget, 48.2 million budgeted, and then again, 45.4 million in actual, and then same with expenditures, a little 48 million was budgeted, and then actual expenditures was 45, 45.2 million.

and expenditures were 2.7 less than what the final budget was.

and then after the budget to actual, then we have, if you didn't get enough information related to BRS pension and OPEB liabilities, the next six exhibits are information related to pension and OPEB.

And then, so those are all of the required supplementary information

and then the next section of the report are the supporting schedules.

So those start on page 65.

So schedule one, this is just a detailed schedule of expenditures for the general fund.

This shows the various expenditures, again, just detailed expenditures related to the expenditures that are shown previously on the exhibit five for the general fund.

The next two schedules are related to indirect cost rate.

So schedule two is the schedule of all the indirect costs.

So total indirect costs during the fiscal year was $552,000.

And then schedule three

shows the individual program and personnel cost.

So total individual program personnel costs were $1.1 million.

So the indirect cost rate calculation for FY 25

is 50%, so the individual indirect cost of $552,000 divided by total individual personnel cost, so indirect cost rate for, again, FY 25, which will then be in effect two years later, FY 27, so 50% indirect cost.

Right.

Yeah.

So those 50 percent, two years will be used for your indirect cost, whereas the actual cost that you could use for indirect cost for the fiscal year was based on two years ago, the 41 percent.

So it's a two year lag.

Gotcha.

And then the last schedule is just the schedule of grant contracts.

This is a schedule that the Finance Committee wanted a few years ago, probably 10 years ago now.

But this just shows the total contract for the grants, how much spent here today, how much is still related to FYI.

It's budgeted for the next fiscal year.

And then the last section again is the compliance section.

Again, the first four pages are the two reports from us.

And then on page 75 is the schedule of expenditures of federal awards.

So this just shows the federal grant expenditures by program.

and then two pages, the last, very last page is a schedule of findings and question cost.

So it's kind of summarized information related to the audit.

Again, unmodified opinion on the financial statements, no material weakens to significant deficiencies related to internal controls over financial reporting, no federal award findings and then

The major programs that were done related to the, this year, the big major program was related to the COVID program related to the broadband.

And that's

That's all related to the audit.

Any questions for David?

No, sir.

Just so that you know, I read it.

Page 11.

Blue cigarette pack.

It's only accruing interest in the females for the two checking accounts at $500.

So the reserve funds are accruing in the reserve account.

and their running balance of $500 each.

Now that makes sense.

Yeah, because I came on at 11.

So we have this conversation every year.

You were, like I say this all the time, but I think at that point you were very close to 30 days of shutting things down, man.

I think I put my agenda somewhere.

Well, I guess I never recommended that.

Yeah, no action, just action.

Yes, we did.

We have to take an action on this?

Thank you for keeping me straight, sir.

Not at all.

Would you like me to make the action?

Yeah, let's do that.

Okay.

Why don't we?

Thank you, fine, sir.

Second.

Thank you, Michael.

All in favor?

Anybody want to talk about anything else?

Then I think we can adjourn.

All in favor.

There you go.

We're done.

That was easy.