1. Exeter Township December 31, 2016 Audit Results
Presented by: Becky Clouser, CPA
Principal, Audit Services Department
September 25, 2017

2. Highlights
Converted to the modified accrual/full accrual basis of accounting for the 2016 financial statements (previously prepared using the modified cash basis), with the exception of recording capital assets and related depreciation
New debt of $7,005,000 issued to advance refund a former bond issue

3. Highlights
Adverse Opinion for entity-wide statements and the proprietary fund statements (Sewer Fund and Country Club Fund) – capital assets and related depreciation are not recorded
Unmodified Opinion for the governmental fund financial statements
Adoption of GASB 72, Fair Value Measurement and Application – additional disclosures relative to the Township’s pension plan investments.
Majority (94%) are considered “Level 1” because they are based on quoted market prices in active markets

4. Entity Wide
Total assets and deferred outflows of resources of $25.9 million at 12/31/16, compared to $25.7 million at 12/31/15
$18.1 million – cash and certificates of deposit
$4.5 million – receivables, prepaid expenses and inventory
Total liabilities and deferred inflow of resources of $55.1 million at 12/31/16, compared to $56.6 million at 12/31/15
$44.5 million – debt (bonds/notes payable and capital leases)
$2.2 million - net pension liability
$6.0 million – other post employment benefits liability (for health and life insurance for eligible retirees)

5. Entity Wide
Total net position (deficit) of ($29.3) million at 12/31/16 compared to ($30.9) million at 12/31/15
($42.2) net investment in capital assets
$1.7 million restricted
$11.2 million unrestricted
Positive change in net position of $1.6 million for 2016
Total revenues of $20.4 million
Total expenses of $18.8 million

6. Governmental Activities Business-Type Activities
Entity Wide
Governmental Activities
Business-Type Activities
Sewer
Country Club
Current Assets
$9,136,519
$6,002,747
$400,913
Current Liabilities
$1,447,459
$2,288,852
$130,222
Current Ratio
6.18
2.62
3.08
Note: Sewer current assets do not include a $7 million CD that matures in 2018

7. Fund Statements General Fund: All other funds:
Fund balance of $3.8 million at December 31, 2016
Increase of $286,000 from 2015
General Fund positive budget variance of $136,000
Revenues in excess of budget by $791,000
Net Expenses and Other Financing Sources (Uses) over budget by $655,000
All other funds:
Fund balances of $3.8 million at December 31, 2016
Increase of $668,000 from 2015

8. 2016 Revenue – Fund Level Governmental Funds

9. 2016 Expenditures – Fund Level Governmental Funds

10. Financial Results Proprietary Funds – Net income (loss)
Note: 2016 Sewer Fund net income includes a $1.5 million transfer out of the 2009 Capital Projects Fund to a governmental fund type

11. Audit Results Report Client service team
Areas of audit emphasis and changes from planning
Required communications
Summary of significant accounting estimates
Summary of significant financial statement disclosures
Fraud considerations and the risk of management override
Management letter – IT related comments
Summary of posted audit adjustments
Management’s representation letter

12. Thank you for the opportunity to serve you